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Could Trump be the “Cryptocurrency President”? The experts weigh in
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While talking around cryptocurrency has taken a backseat during previous election cycles, this time it’s front and center. The crypto space appears to be the latest frontier where candidates try to outdo each other with their positions.
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In fact, according to Bitcoin Magazine, Donald Trump has started calling himself the “president of cryptocurrencies.”
However, his newfound love for cryptocurrencies represents a sharp turnaround from the previous election cycle, in which he repeatedly stressed that he was “not a fan of ‘Bitcoin and other cryptocurrencies,’ which he believes are ‘not money.’ .
Further reflecting this sharp U-turn, just last week, Trump said he wanted “all remaining Bitcoin produced in the United States,” according to a June 11 Truth Social post.
And this comes on the heels of the Trump campaign announcing it would accept cryptocurrency donations accepted through the Coinbase Commerce product, according to a May 21 statement. The presumptive Republican presidential nominee is garnering a lot of praise from cryptocurrency organizations and supporters.
In this context, expert opinions differ on the question of whether Trump would be the “cryptocurrency president” if he were re-elected.
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A welcome support
According to Patrick Gruhn, former European head of FTX and founder of Perpetuals.coma Trump victory would be good for the cryptocurrency industry.\, partly because of his clear stance against a central bank digital currency (CBDC).
Gruhn sees this as “a threat to the cryptocurrency industry, especially if other stablecoins are outlawed and CBDC allows for government control”
He also noted that a Trump victory could hinge on crypto voters, which could make a difference in swing states.
“In my opinion, for crypto voters, Trump is literally the only realistic option to achieve a crypto-friendly environment in the United States after the election,” he added.
Just an electoral promise
Some experts, however, see Trump’s recent shift towards cryptocurrencies solely as an electoral tool to attract more voters.
“I don’t know if he has a personal affinity for cryptocurrencies, but I think he realizes that cryptocurrencies are an important issue for many voters,” said Peter Eberle, president of Castle funds. “His new pro-crypto stance gives him the opportunity to pursue voters that Biden alienated with his anti-crypto stance.”
Meanwhile, his support is also a testament to the resilience, importance and legitimacy of the space, a development that underlines the fact that the industry has now become a rather serious election issue, “whether one is a fan or not “, he has declared. Brian Dixon, CEO, Outside the capital of the chain.
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While Dixon noted that this is a notable transition from just a few years ago, when cryptocurrencies were never discussed by most politicians, he added, however, that politicians often campaign on issues then and there, but fail to follow or fall below the expectations of what voters had hoped for once in office.
“So it’s important that the cryptocurrency industry remains as organized as possible in terms of the lobbying and educational outreach that is taking place in Washington,” Dixon added. “Whether a Democrat or a Republican is in power, the industry must remain focused on advancing its interests.”
Short-term gains
There could also be short-term positive effects for the cryptocurrency sector if Trump is re-elected. For example, cryptocurrency prices could see an increase, said Tim Kravchunovsky, CEO and founder of Wireless chirping. However, in the long term, Kravchunovsky suggested that Trump’s victory will likely be something of an anti-climax for the cryptocurrency industry.
“The reality is that his sudden support for cryptocurrencies is probably a publicity stunt to gain support from web3 enthusiasts,” he said. “But once victory is secured, cryptocurrencies are unlikely to be at the top of his agenda, and even if they are, he will struggle to get pro-crypto resolutions past Democrats.”
As Kravchunovsky noted, all major US cryptocurrency regulatory bodies, such as the SEC, the Commodity Futures Trading Commission (CFTC), and the Federal Trade Commission (FTC), are now under pro-Democrat leadership.
“At best, it will be a long road before we see a truly positive impact on the crypto space,” he said. “There is very little substance to Trump’s pro-crypto rhetoric. For example, most recently, he said that he wants all remaining Bitcoin to be mined in the United States, but we have not heard any concrete proposals on how this could happen.”
He further argued that at the moment “it is nothing more than catchy headlines and lofty promises”.
“We would need more details to assess the potential effectiveness of his pro-crypto policies,” he added.
The sentiment was echoed by other experts, such as Daniel Krupka, chief researcher at Coin Office– who noted that while there would likely be no significant policy changes to initiate, the mere fact that Trump is perceived by the cryptocurrency industry as pro-crypto could be enough to revive the markets.
“Trump’s recent support for Bitcoin mining in the US is proof of this: it has caused Bitcoin mining stocks to rally,” he added.
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