Trump Asserts Presidential Victory: His Promises to the Crypto Sector

On the night of the election, Donald Trump was surrounded by a group of notable supporters at his Mar-a-Lago estate. Among these were Elon Musk, Robert F. Kennedy Jr., and Howard Lutnick, the CEO of Cantor Fitzgerald.

What ties these figures together is their involvement with the cryptocurrency sector.

Though Trump had previously spoken little about digital currencies, he has recently begun courting the industry heavily for substantial financial backing. To secure these contributions, he has laid out significant commitments regarding cryptocurrency.

On election night, the value of digital assets like Bitcoin surged, with Bitcoin reaching high levels as Trump's potential win became increasingly probable. In related after-hours trading, stocks associated with cryptocurrency also experienced gains.

With the anticipation of a Republican-led Senate, Trump faces fewer barriers to implementing a more crypto-friendly agenda. Here are some commitments he has made:

A National Reserve of Cryptocurrencies

Trump was the main speaker at the largest Bitcoin event of the year. In his keynote, he announced that if he returned to the office, he would prevent any federal sell-off of the government's Bitcoin reserves. However, he did not propose an official reserve of digital currencies.

"Our government has long ignored a fundamental axiom understood by every Bitcoin enthusiast: Never sell your Bitcoin," Trump declared during the event.

He assured the audience of maintaining the current levels of Bitcoin accrued by the U.S. through seizing assets from financial criminals.

"If I am elected, my administration will ensure that all Bitcoin currently held by, or acquired by, the U.S. government is preserved 100%," he stated.

Presently, the U.S. manages Bitcoin and other cryptocurrencies from various seizures. Sales of these assets can sometimes lead to declines in crypto values, as seen when Germany began liquidating a significant Bitcoin cache.

Trump's Promise to Remove Gary Gensler

Trump has consistently stated his intention to dismiss U.S. SEC Chairman Gary Gensler.

"On my first day, I will remove Gary Gensler," Trump asserted, referring to the SEC chairman appointed by Joe Biden, known for his tough stance on cryptocurrency regulation.

The president lacks the authority to directly fire the SEC chair. Even with a new appointee, Gensler would still retain his position as a commissioner.

Under Gensler, the SEC has initiated over 100 proceedings against cryptocurrency entities. He has publicly stated that many elements of the sector fall under the agency's purview, thus their legal actions aim to enforce compliance.

The cryptocurrency community argues these legal challenges have not provided the regulatory clarity sought but rather demonstrate an excessive reach of authority by the commission.

Trump also promised to form a 'Bitcoin and crypto presidential advisory committee.'

"The rules will be crafted by those who appreciate your industry, not disdain it," he affirmed.

Commitment to American Bitcoin Mining

In Palm Beach, Florida, Trump met privately with numerous leaders and experts from the Bitcoin mining sector for an extensive discussion at Mar-a-Lago. This session marked his first direct engagement with the specialists who maintain the $1.5 trillion Bitcoin framework using substantial computational resources.

The group included major private and public American mining firms such as those represented by , , , and .

In less than four hours following this discussion, Trump voiced his support for the Bitcoin mining industry on social media.

"Biden's opposition to Bitcoin simply benefits countries like China and Russia, as well as the Radical Communist Left. We insist that all remaining Bitcoin must be PRODUCED IN AMERICA! This will help us achieve ENERGY DOMINANCE!" he posted on Truth Social.

Since then, Trump has reiterated this viewpoint on several occasions.

"If the future is defined by crypto, I want its mining, minting, and production to occur within the USA," Trump announced in Nashville.

"We'll generate so much electricity you'll be pleading, 'Enough, Mr. President, we don't need more!'" he added.

Federal Interest Rate Reductions

Trump stated that, should he take office, he would push for cuts in interest rates.

The U.S. Federal Reserve, responsible for guiding national monetary policy, is tasked with setting these rates and functions independently from the executive branch.

Former Fed Chair Jerome Powell initiated a half-point rate cut in what was the first easing cycle in four years.

Historically, lowering interest rates and relaxing monetary policies have coincided with increases in cryptocurrency prices, as they make borrowing cheaper.