From Bitcoin to Trumpcoin: currency of the US Government
Within a month Donald Trump will be inaugurated as the 47th president of the United States. His embracement of crypto will mean a potentially much friendlier four years of policymaking than outgoing President Joe Biden's administration provided.
In this blog I will give in more detail what Trump’s vision is, what are the goals he may realise, what his proposals are, how the market reacted up till now but above all what are the critics and in how far can his plans be realised.
Trump: from crypto opponent to crypto supporter
President-elect Trump was initially a crypto sceptic — who labelled crypto a scam three years ago and criticised it for competing against the US dollar.
Trump however fundamentally changed his mind. He started to embrace crypto during his campaign this year. Thereby he positioned himself as a crypto champion. He sees the integration of cryptocurrencies as central to future economic growth in the US.
This change of tone has much to do with the support of the crypto industry. Trump’s campaign effectively engaged the cryptocurrency sector, raising millions through crypto donations, totalling around $245 million.
Further on this change cannot be seen apart from his own growing financial interest in crypto. Trump as well as many of Trump’s intended ministers themselves have crypto interests. In September, Trump and his sons started a crypto venture, World Liberty Financial, a platform for investors to borrow and lend using cryptocurrencies.
In some ways, this shift is reflective of the broader public warming to digital assets as a legitimate investment class, particularly with the SEC’s regulatory approval early this year of spot Bitcoin and spot ether ETFs. Bitcoin ETFs hit $ 100000 billion and more in 2024.
Trump’s vision
Trump’s government will take a dramatically different approach to crypto than the Biden Administration.
Trump recognises that digital assets and other innovations are crucial to “Making America Greater than Ever Before”. He is openly supporting Bitcoin and sees for it that the future of crypto and Bitcoin will be in the United States. Trump promised to make the US the crypto capital of the planet, by bringing in friendly regulators.