Bitcoin Just Got Its Biggest Booster
In a dramatic reversal, former President Donald Trump has changed his stance on cryptocurrency and is now singing its praises as a bastion against a Central Bank Digital Currency (CBDC) and a method of challenging both Russia and China on the world stage. While it may simply signify that Trump is courting the one third of voters who say a politician’s stance on cryptocurrency will affect their support in the 2024 election, it ultimately leads to one clear winner: cryptocurrency.
On June 11, Trump posted his support for cryptocurrency on Truth Social, expressing that all remaining Bitcoin should be “made in the USA” and that it will help the country be energy dominant, although it is not entirely clear what the presidential candidate means by these statements. Bitcoin is produced through a method known as mining, which is notoriously energy intensive (accounting for 2.3% of U.S. energy consumption in 2023). According to Robert Hart at Forbes, it may be that he is referring to the regulations surrounding Bitcoin mining and how President Joe Biden is proposing a 30% tax on energy used in the process.
Biden has been losing favor in the cryptocurrency world as a result of numerous actions designed to stifle the industry’s development. Most recently, he vetoed legislation that would have protected consumers’ right to store their Bitcoin in the financial institution of their choosing, instead enabling the SEC’s SAB 121 to stand.
Many responded to the veto with scorn, including Senator Cynthia Lummis (R-WY). “The SEC should never use staff accounting bulletins to determine policies — especially for industries it does not regulate —yet that is the new norm under President Biden’s leadership,” Lummis posted on X. “Congress gave this administration the opportunity to correct its position on crypto assets, but instead of listening to the will of the American people and reining in the SEC, President Biden doubled down on his administration’s failed policies at the expense of American consumers.”
Others point to “Operation Chokepoint 2.0,” being part of the Biden administration’s efforts to keep cryptocurrency out of the financial system.
It could be that Trump’s change in stance is simply intended to provide a counterbalance to Biden’s apparently strong anti-cryptocurrency position. In his original post, Trump referenced “Biden’s hatred of Bitcoin,” making it clear that he is aware of how Biden’s actions are being perceived by the crypto community.
It may also be a skeptical bid for reelection, an attempt to woo Silicon Valley and the significant portion of the country (25%) who own Bitcoin. If that’s the case, then Trump’s election may not wind up dramatically moving the needle for the cryptocurrency industry.
On the other hand, Trump may legitimately support cryptocurrency, resulting in the loosening of regulations and the potential blockade of a potentially invasive CBDC if he regains the presidency. Either way, by bringing cryptocurrency to the front and center of the presidential race, Trump is undoubtedly boosting its popularity among his supporters.
Regardless of political stance, the more people who are familiar with cryptocurrency and are willing and ready to invest in it, the more the industry stands to benefit. For investors who are already tapping into the cryptocurrency fountain, that’s invariably a good thing.
