With Donald Trump projected to win the November 5 presidential election, many in the U.S. crypto community are hopeful about increased regulatory clarity and support for the industry. Trump’s expected victory, supported by key media outlets like The Hill and Decision Desk HQ, comes after wins in crucial swing states such as North Carolina and Georgia. According to The New York Times, Trump is set to earn 306 electoral votes, though the Associated Press has him at 267 at the time of reporting, just shy of the required 270.
On the campaign trail, Trump made various promises to the crypto sector, including plans to dismiss SEC Chair Gary Gensler, support U.S.-based Bitcoin mining, create a national Bitcoin reserve, oppose a central bank digital currency (CBDC), and consider clemency for crypto advocate Ross Ulbricht. However, while some in the crypto space are optimistic about these pledges, others are cautious, urging the community not to assume these goals will be fully realised.
Fire Gary Gensler
Trump has promised to remove Gary Gensler, the SEC Chair known for taking legal action against multiple crypto projects and exchanges, including Coinbase and Uniswap, due to claims that many cryptocurrencies qualify as securities. Gensler’s term is set to end in April 2025, but Trump could act sooner to replace him with someone more crypto-friendly.
Free Ross Ulbricht
Trump also vowed to commute the life sentence of Ross Ulbricht, founder of the Silk Road marketplace, who is serving a life sentence for enabling illegal online trade.
Silk Road is a website that allows any user to sell whatever they want in exchange for Bitcoin, including illegal products such as unregistered guns and drugs. The Silk Road processed an estimated $230 million worth of sales in its lifetime, according to a report from Ars Technica.
Ulbright was arrested in 2013 and is currently serving two life sentences plus 40 years, without the possibility of parole, for his role in founding Silk Road. Supporters claim that his sentence is too harsh for a web designer who merely facilitated the trade of drugs and did nothing violent.
Trump’s commutation could potentially set Ulbricht free, depending on its terms.
Pro-Bitcoin Mining Policies
Trump has expressed his desire to foster Bitcoin mining in the U.S., envisioning a shift toward making Bitcoin “Made in the USA.” Although environmental concerns around Bitcoin mining persist, a pro-mining administration could ease regulations, supporting domestic operations.
Strategic Bitcoin Reserve
Another proposal involves a strategic Bitcoin reserve, with Trump suggesting that the U.S. hold onto seized Bitcoin rather than liquidating it. This idea, backed by figures like Senator Cynthia Lummis, is seen as a potential asset for paying down national debt.
Prevent a CBDC
Trump has pledged to prevent the development of a U.S. central bank digital currency, a government-controlled digital dollar. Some in the crypto space view this as a positive move, as it could preserve privacy and prevent potential government oversight of personal finances.
Not Everyone Believes Trump
Not all industry leaders believe Trump will follow through on these commitments. For instance, ShapeShift’s Eric Vorhees called Trump’s U.S.-only Bitcoin mining goal “absurd nationalist nonsense,” while Casa’s Jameson Lopp argued that seized Bitcoin may legally belong to exchanges like Bitfinex and should be returned.
Trump’s crypto promises have sparked excitement, but the industry remains cautious about the actual impact of his proposed policies.
