Republican presidential nominee Donald Trump has unveiled his plan for the US to become the “crypto capital of the planet”, in the event of his victory in November’s election.
Appearing at the Bitcoin 2024 conference in Nashville over the weekend, the former US president announced his intention to sack current Securities and Exchange Commission chair Gary Gensler, appoint a crypto presidential advisory council, and create a stablecoin framework.
“We will have regulations, but from now on, the rules will be written by people who love your industry, not hate your industry,” Trump told attendees.
“I pledge to the bitcoin community that the day I take the oath of office, Joe Biden, Kamala Harris’ anti-crypto crusade will be over.”
In conversation with InvestorDaily, Magnet Capital co-chief investment officer Benjamin Celermajer said a regulatory overhaul would be a win-win for both the US and global economy.
“Proactive regulation and a supportive administration allows businesses to domicile on-shore in the US,” Celermajer said.
“In turn, this gives users and customers comfort when engaging with these businesses. A net positive effect for everyone, the US has the ability to turn into a crypto hub, not because of tax but because of proactive regulation.”
Perhaps most notably, Trump also announced his pledge to maintain a “strategic national bitcoin stockpile” on home soil, stating that he will “never sell” the nation’s more than 200,000 bitcoin amassed from seizing assets through law enforcement action.
While Trump didn’t offer further details, independent US presidential candidate Robert F. Kennedy Jr, meanwhile, laid out plans to purchase 4 million bitcoin as president. For Binance ANZ general manager Ben Rose, the move is a positive sign for the digital assets market, now that bitcoin is being cited more frequently.
“Implementation of a US strategic bitcoin reserve will require legislative and technical processes, but what is clearly meaningful is that politicians and prominent industry leaders are explicitly stating their positions, recognising the value of bitcoin in the monetary system, and making it clear that crypto is important on their agenda,” Rose said.
“This likely means more regulatory clarity as governments need to make their stance clear.
“The bottom line is the two presidential candidates’ pledge is increasing recognition of bitcoin as a legitimate financial instrument.”
Australia to play catch-up
Weighing in, Monochrome Asset Management founder and chief executive Jeff Yew warned that Australia will have some catching up to do if it wants to compete in the space.
“If Trump gets in office and carries this promise to establish this bitcoin national stockpile, it could potentially position the US as a global superpower in bitcoin and the digital asset industry,” Yew told InvestorDaily.
As such, he underscored that it’s in Australia’s best interest to catch up with global counterparts, noting that the government’s current bitcoin understanding is comparatively “low”.
“The last thing you want is a superpower to have more of a pristine reserve like bitcoin – or back in the day, gold – above you, because that puts you in a very bad, disenfranchised national strategic position,” Yew said.
“It makes sense to have a bitcoin reserve, a national reserve policy in every country.”
Moreover, Celermajer described Trump’s call for a national reserve as “monumental”, and a chance to ignite talks among other global powers, like Australia, to do the same.
“Trump is the leading candidate and this would establish the first strategic reserve with bitcoin in the developed world,” Celermajer said.
“Game theory suggests this starts conversations amongst friend and foe as to whether or not they, too, wish to consider a sovereign bitcoin holding at risk of falling behind economically,” he said.
