Good day everyone,
I hope you are all having a good day, welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at the promises Donald Trump has made to the crypto community as part of this presidential election campaign, and how some of them may be impossible for him to implement.
Trump Crypto Promises
Presidential candidate Donald Trump may not be able to honour all of his pro-crypto campaign pledges if he is elected as the President of the United States in this coming November election. It was at the Bitcoin 2024 conference in Nashville where the Republican presidential nominee Donald Trump announced his policies related to cryptocurrency and blockchain. While the former United States President had previously addressed groups to discuss his position on crypto, blockchain, central bank digital currencies (CBDCs), and non-fungible tokens (NFTs), one of the first public events where he addressed these topics since securing the Republican nomination was at the Bitcoin conference.
Trump noted plenty of promises, including the requirement to produce “tremendous” electricity for Bitcoin mining. He noted that he would work to help the United States compete with other nations to mine cryptocurrencies like Bitcoin . Trump stated that he would ramp up electricity production in the US using fossil fuels and nuclear power, cutting through “ridiculous” regulatory requirements. Little to no information was given on how he plans to achieve this, as incentivising this type of power generation at a time when many countries are looking for greener solutions in response to climate change seems quite challenging.
On top of that there have already been many issues in terms of electricity consumption for Bitcoin and other cryptocurrency mining. In Texas there have been reports of widespread blackouts from overuse of the electrical gird, and it was reported that largescale Bitcoin miner Riot was paid an astonishing $31 million in August 2023 to stop using electricity in the state. As a large industrial customer they were incentivised by Texas’ grid operator, the Electric Reliability Council of Texas (ERCOT), as they pay certain customers to stop using energy when demand is high. This money is paid from other ratepayers and many have argued that Texas is 'flying blind' without the knowledge of exactly what amount of electricity these largescale mining firms are using.
How Trump plans to resolve this is anybody's guess. During his previous term in office as the President of the United States, Trump's administration were unable to see any significant infrastructure bill passed through Congress. This was mainly due to disagreements with other investments in renewable energy along with project funding. Any pledges Trump has made in terms of electricity production will come down to congressional support. Trump noted:
“If crypto is going to define the future, I want [it] to be mined, minted and made in the USA. It’s going to be. It’s not going to be made anywhere else.”
Another key element of Trumps pledges was to remove the chair of the Securities and Exchange Commission, Gary Gensler. Many in the crypto community are keen to see this happen, as Gensler has long been seen as biased against the crypto community and targeting them with lawsuits. It should be noted that very few US presidents have “fired” the head of regulatory bodies like the Securities and Exchange Commission or Commodity Futures Trading Commission. This is partially due to the fact most chairs tend to announce they will be stepping down once there is a change in administration. As things stand Gensler's term ends in June 2026 and even if Trump did want to fire him the official process would take months or years to finalise. Trump promised:
"On Day One, I will fire Gary Gensler and appoint a new SEC chairman. I didn't know he was that unpopular. Well, I— wow, I didn't know he was that unpopular. Let me say it again. On Day One, I will fire Gary Gensler!"
To remove him as chair would require cause, and SEC guidelines do not specifically detail the reasons a US president may dismiss a chairperson or commissioner. Court cases would suggest the requirements would be “inefficiency, neglect of duty, or malfeasance” for just cause in terms of removing a chairperson. Even if Trump is elected, the question of whether or not he could make a case of removing Gensler may become a moot point. The previous time Trump was elected, in 2017, the chairperson of the SEC under the administration of Barack Obama, Mary Jo White, announced she would be stepping down on Trump's inauguration day.
Another significant policy change Trump said he intended to enact if voted in as President would be to include a regulatory framework for stablecoins along with blocking any Central Bank Digital Currency (CBDC) under development at the Treasury Department. At the Bitcoin conference 2024 Trump had stated:
“As president, I will immediately shut down Operation Chokepoint 2.0. [...] Upon taking office, I will immediately appoint a Bitcoin and crypto presidential advisory council. [...] I will immediately order the Treasury Department and other federal agencies to cease and desist all steps necessary [for] a central bank digital currency.”
United States presidents can encourage lawmakers within their own party to draft legislation or sign executive orders but there is no guarantee this will come to fruition. At the conference Senate Majority Leader Chuck Schumer declared that Congress has the potential to pass crypto legislation by the end of this year. It is also interesting to note that during Trump's term in office between 2017 and 2021 he did not suggest any of these policies were a priority at the time. While his stance on crypto has dramatically shifted in recent years, but many will be aware he will need the support of congress to enact any of these potential policies.
One of the more interesting pledges made by Donald Trump was in terms of getting Ross Ulbricht, the creator of dark web marketplace SilkRoad, released from his two life sentences without the possibility of parole sentence. Trump stated:
“I repeat my pledge to commute the sentence of Ross Ulbricht to a sentence of time served.”
Ulbricht was found guilty of seven felony charges in 2015 for creating a platform which allowed users to buy and sell illicit products, including drugs, stolen credit card information and weapons. While serving as the President of the United States Trump would be in a position to pardon someone for federal crimes. Trump granted 237 acts of clemency between 2017 and 2021, and a pardon may be granted for federal crimes, whether or not they have been charged, convicted or sentenced, or commute their sentence if they’re currently in prison.
Reports have noted that Ulbricht’s name crossed the former president’s path after he lost the 2020 election to Joe Biden. Trump did not pardon or commutation Ulbricht during his final two months in the White House last time, and he also failed to pardon WikiLeaks founder Julian Assange. In 2024 Assange did manage to reach a plea agreement with authorities after being indicted with alleged violations of the Espionage Act.
If Trump was to grant a commutation then Ulbricht would be released from federal prison with time served, and his criminal conviction would remain on his record. If Trump was to grant a presidential pardon then Ulbricht wouldn’t have his conviction completely expunged but would regain certain civil rights such as voting, owning a firearm, holding office or sitting on a jury.
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The question over which, if any, of these pledges made by Donald Trump as part of his presidential election campaign can be enacted remains to be seen. On the opposite side Kamala Harris has been facing calls to explain her stance toward digital assets. A recent 92-page agenda released ahead of the Democratic National Convention did not contain any mention of crypto. Given the previous stance of the Democratic party towards digital assets, it would be difficult to expect a complete policy shift in such a short space of time since Joe Biden dramatically dropped out of the race.
It took Trump over three years to completely change his stance towards being pro-crypto, and this followed after years of criticism towards the digital asset. This means many American voters are facing a difficult dilemma when it comes to the election in November. Many want the United States to become a leader in crypto policy but at the same time some are reluctant to back the Republicans following Trump’s chaotic previous term in office.
During Biden's time in office he faced a backlash for its heavy-handed approach towards the crypto industry. This led to claims that Harris may follow suit if she is elected into the White House. For now Trump holds the upper ground when it comes to the crypto community, with endorsements and donations from a number of industry heavyweights and his appearance at the Bitcoin 2024 conference. With key executives set for discussions with senior Democratic officials, there is hope yet amongst Democratic voters that their party can adopt a more favourable approach towards crypto. Some even feel optimism that the future of the Democrats could see them attempt to right some of the wrongs made over the past four years.
Have a great day.
Peace. CryptoGod-1.
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