- Trump Crypto Flip could mean embracing Bitcoin as part of America’s strategic reserve.
- During his first term, Trump was not a fan of Bitcoin or cryptocurrencies.
- His anti-crypto stance changed after leaving office, showing new support for crypto.
- Crypto donations and endorsements might influence Trump’s potential pro-crypto policies.
Former President Donald Trump’s relationship with cryptocurrency has taken a dramatic turn. CoinBureau recently talked on the topic “Trump Crypto Flip” which is also a part of the possibility of Trump embracing Bitcoin as part of America’s strategic reserve.
With the 2024 presidential elections on the horizon, Trump’s support for crypto might change its recognition in the U.S.
Trump Crypto Flip: Initial Stance
During Trump’s first term from 2016 to 2020, he wasn’t a fan of Bitcoin or other cryptocurrencies. So, In 2016, he called for all election campaign donations to be made in crypto. Criticized Ted Cruz for being “bankrolled by the big Banks” and called his wife ugly all in the same breath.
However, after the election, Trump was silent on crypto till 2019. On July 12, 2019, he tweeted, “I am not a fan of Bitcoin and other cryptocurrencies. They are not money and whose value is highly volatile and based on thin air.” So, CoinBureau notes that this tweet resulted in a 3.65% relief rally for Bitcoin. This means that the market was more excited to see a president mention crypto than worried about his opposition.
Furthermore, Trump’s 2019 anti-crypto stance went public when Treasury Secretary Steve Mnuchin, called Bitcoin a “national security threat.” Mnuchin even suggested that BTC could be a substitute for gold. Despite these statements, Trump never publicly commented on crypto again while in office. According to CoinBureau, back then there were efforts to introduce stringent KYC regulations for all self-hosted wallets, which were eventually dropped due to backlash.
Trump Crypto Flip: What Change?
Trump’s public comments on crypto changed after leaving office. Although, in a 2021 interview with Fox Business, he called crypto a “disaster waiting to happen” and said, “They may be fake, who knows what they are, but they are certainly something that people don’t know very much about.” Yet, his wife Melania Trump launched an NFT collection called Melania’s Vision on Solana in late 2021, and by May 2022.
According to CoinBureaua, Trump flipped to a pro-crypto began in 2023, declaring on Truth Social, “I am very positive and open-minded to cryptocurrency companies and all things related to this new and burgeoning industry. Our country must be the leader in the field; there is no second place”.
Additionally, CoinBureau suggests that Trump’s pivot to crypto might be influenced by huge donations and endorsements from key figures in the crypto industry, including Kraken founder Jesse Powell and the Winklevoss twins of Gemini. Who have collectively donated nearly $2.5 million worth of BTC and ETH to his campaign.
Trump Crypto Flip: What Will the Second Trump Administration Be Like?
If Trump wins the 2024 election, CoinBureau speculates that his administration might take a more favorable stance toward crypto. So, Trump’s previous election win in 2016 saw BTC rally, and another victory could lead to similar market reactions. Thus, CoinBureau points out that the key to understanding Trump’s potential crypto policy lies in who he appoints to head specific roles. Possible names include JD Vance, a Bitcoin holder and supporter, and possibly Peter Thiel, who has backed Vance in the past.
One of the biggest questions is who would head the SEC. Trump donor Jacob Helberg mentioned that Trump plans to “end the crusade against crypto within one hour of taking office,” echoing the Republican party’s pledge to end the Democrats’ crypto crackdown.
However, CoinBureau said that it’s unclear how Trump would manage this, as SEC Chair Gary Gensler’s term ends in 2026, and removing him might be legally challenging.
Speculation on BTC as a Strategic Reserve
Speculation is rife about whether Trump might adopt BTC as a strategic reserve asset. Pro-crypto Senator Cynthia Lummis has reportedly discussed a bill to make this a reality.
So, CoinBureau suggests that if Trump announces such a plan, it could be a game-changer for the crypto industry.
Is Crypto a Campaign Wedge Issue?
CoinBureau stated that Trump’s crypto holdings and NFT sales are secondary to his real mission. They claim that he aims to use crypto as a wedge issue in the 2024 presidential election.
However, this might be understandable because Trump’s political transformation has been aided by donations of almost $2.5 million worth of BTC and ETH to his campaign and endorsements from crypto industry figures.
Conclusion
Trump crypto flip has created excitement and speculation. Could he turn Bitcoin into America’s strategic reserve? His record was anti-crypto, but recent statements suggest a different future. As CoinBureau notes, the key to understanding Trump’s crypto policies lies in his appointments and actions if he wins the 2024 election
So, as he prepares for a possible second term, the crypto community watches closely, hoping that his pro-crypto rhetoric translates into favorable policies and actions.
The information provided in this article is for informational purposes only and should not be considered financial advice. The article does not offer sufficient information to make investment decisions, nor does it constitute an offer, recommendation, or solicitation to buy or sell any financial instrument. The content is opinion of the author and does not reflect any view or suggestion or any kind of advise from CryptoNewsBytes.com. The author declares he does not hold any of the above mentioned tokens or received any incentive from the company.
