Trump Advocates for Holding Bitcoin, Plans to Dismiss Gensler, and Establish a Strategic Cryptocurrency Reserve

Former President Donald Trump enhanced his reputation as a supporter of Bitcoin with a series of significant announcements, including the proposal to incorporate cryptocurrency into the government’s reserves, during an energetic address to a gathering of crypto enthusiasts at the Bitcoin 2024 Nashville conference.

“This afternoon, I’m outlining my strategy to ensure that the United States becomes the global hub for cryptocurrency and the leading Bitcoin power in the world, and we will achieve this,” stated Donald Trump at the Bitcoin 2024 conference in Nashville, Tennessee on Saturday.

To enthusiastic cheers from the audience of 5,000, Trump asserted, “On day one, I will terminate Gary Gensler.” He added: “I assure the Bitcoin community that the moment I take the oath of office, the anti-crypto campaign led by Joe Biden and Kamala Harris will come to an end.”

JUST IN: The crowd erupted with excitement after Donald Trump promised to dismiss SEC Chairman Gary Gensler during the Bitcoin Conference in Nashville, Tennessee.

Trump appeared surprised by the audience’s reaction when he made this announcement.

“On day one, I will fire Gary Gensler and… pic.twitter.com/0CyOMaY6FY

— Collin Rugg (@CollinRugg) July 27, 2024

Trump: crypto regulations “will be crafted by those who appreciate your industry”

“We will implement regulations, but moving forward, the guidelines will be established by individuals who appreciate your industry, not those who oppose it,” Trump declared, a statement likely to unsettle all US financial regulators and their counterparts globally. He specifically called for a reduction in enforcement actions by US financial authorities.

Drawing parallels between the challenges faced by the crypto sector and his own legal battles, he remarked that he would put an end to “oppression.” “They label you as criminals, but I faced similar accusations when I claimed the election was rigged,” Trump noted.

In a comprehensive address, he also disclosed that if elected, his administration would establish a presidential advisory council for the crypto industry.

He further stated that the Federal Reserve would be prohibited from developing a central bank digital currency (CBDC), a stance that aligns with Republican efforts at the state level to enact laws banning the use of a CBDC on privacy grounds.

A Trump administration would also introduce a regulatory framework for stablecoins.

More insightful and strategic figures on Wall Street may recognize that regulation is a crucial prerequisite for cryptocurrency to attain mainstream acceptance, and thus may seek to moderate some of the ‘overhaul all regulations’ rhetoric associated with Trump as it pertains to policy.

Trump administration would establish a strategic national bitcoin reserve

The former president, who is running for election in November, also announced his plan to create a “strategic national bitcoin reserve,” which would initially consist of the bitcoin currently held by the Department of Justice, totaling 210,000 BTC.

He did not clarify whether the government should augment that reserve by purchasing BTC on the open market or instead aim to ‘seize and hold’ cryptocurrency from criminals.

JUST IN – Trump, if elected, promises to establish a Bitcoin Reserve, utilizing 210,000 Bitcoin seized by the Department of Justice, as the foundation of a new “Strategic National Bitcoin Reserve.” pic.twitter.com/ucvlyP3BDx

— Disclose.tv (@disclosetv) July 27, 2024

Trump advises to never sell your bitcoin, suggests it could exceed gold’s market cap

Trump confidently stated, “Never sell your bitcoin,” and asserted that bitcoin could eventually surpass the market capitalization of gold. The ‘digital gold’ narrative has long supported Bitcoin’s value proposition.

Even though the bitcoin price has yet to reclaim the $70,000 mark following Trump’s comments, his ‘Never sell’ statement is likely to help stabilize the price, irrespective of the presidential election’s outcome.

JUST IN: Donald Trump states #Bitcoin will one day likely exceed the market cap of Gold.pic.twitter.com/GTAjuIQDZ1

— wallstreetbets (@wallstreetbets) July 27, 2024

Senator Cynthia Lummis of Wyoming also participated in the conference. The lawmaker disclosed that she is drafting legislation to direct the government to accumulate a stockpile of 1 million BTC over a five-year timeframe. The government would be required to retain the bitcoin for a minimum of 20 years, during which the bitcoin could only be utilized to reduce the US national debt.

Cantor Fitzgerald launches $2 billion lending initiative to support bitcoin

Meanwhile, financial services firm Cantor Fitzgerald’s CEO, Howard Lutnick, announced plans for the company to launch a $2 billion lending initiative to finance Bitcoin. Clients holding bitcoin will have the opportunity to access leverage. According to a Bloomberg report, the firm will collaborate with select bitcoin custodians for its lending program.

In another indication of the institutional shift regarding the crypto asset class, Lutnick, using vivid language, stated that the company possesses a “shedload of bitcoin.”

Cantor Fitzgerald has contributed $1.4 million to PACs supporting Trump in this election cycle. The CEO is organizing a fundraiser for Trump in August.

Other prominent speakers at the conference included Edward Snowden, the well-known pro-crypto former National Security Agency contractor who sought asylum in Russia after disclosing government surveillance information. Snowden appeared to express some skepticism towards the Trump adoration: “Cast a vote, but don’t join a cult.”

Harris is absent, but are Democrats becoming more receptive to crypto?

Speculation had circulated earlier in the week that the presumptive Democratic presidential nominee, Kamala Harris, might address the Bitcoin 2024 conference, but this did not occur.

However, as Mark Cuban has indicated, the Democrats have reached out to him and others in the crypto sector, seeking a potential reevaluation of the party’s stance, which has been perceived as antagonistic by many in the industry. As expected for a politician from California, Harris has strong connections with Silicon Valley and is believed to favor a more ‘pro-innovation’ approach to cryptocurrency.

JUST IN: Kamala Harris’ staff have contacted Mark Cuban with inquiries regarding ‘crypto’

“The feedback I’m receiving… is that she will be much more open to business,” says Cuban pic.twitter.com/5hKBfon9MY

— Radar (@RadarHits) July 23, 2024

Wiley Nickel, a Democratic lawmaker from North Carolina, attended the event and publicly advocated for a crypto reset. Along with other Democrats, he has sent a letter to the Democratic National Committee urging a Harris administration to “appoint a pro-innovation SEC chair.”

Nickel received some polite applause for his remarks but was subsequently met with boos when he reminded the audience of Trump’s previous anti-bitcoin stance when he referred to cryptocurrency as “a scam” and “based on thin air.”

Reiterating his position, he stated that Trump was “totally full of shit” regarding cryptocurrency.

“Historic moment” for crypto, Trump campaign supported by bitcoin miners

As of two days ago, Trump’s campaign had garnered $4 million in cryptocurrency donations. That figure may have increased since then.

Brandon Green, the conference’s chief of staff, commented on Trump’s significant shift: “Trump is a businessman and an entrepreneur, and he recognizes the potential that bitcoin presents for the US and himself.”

Many within the crypto sector are rallying behind the Trump campaign for clear reasons, particularly within the bitcoin mining industry.

Cleanspark CEO Zachary Bradford described Trump’s speech as “a historic moment.” Trump has hosted at least one meeting with mining executives at his Florida residence and has expressed his desire to make bitcoin mining a unique domain of the US. Bradford predicted that “America will become the world’s undisputed Bitcoin mining powerhouse.”

Bitcoin price action remains stable for now as Trump election campaign progresses

However, the market reaction has not been as enthusiastic as some might have anticipated. Bitcoin briefly surged above $69,000 but has since retreated to 67,380.

The lackluster response is partly due to the news being already factored into the price and perhaps more importantly because the “Trump trade” does not appear as reliable a bet as it was when Joe Biden was Trump’s electoral opponent.

Harris is narrowing the gap on Trump and has surpassed him in some polls, although still within the margin of error.

Betting on the crypto-driven prediction market, Polymarket has Trump at 57 and Harris at 39, while PredictIt shows the figures at 54/49, respectively.

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