Trump Convicted: Can Crypto bail him out?

Trump’s evolving stance on cryptocurrencies from skepticism to embracement has significant implications for the regulatory landscape and the future of digital assets in the United States. If re-elected, his administration may adopt a more crypto-friendly regulatory approach, which could foster greater innovation and investment in the industry. This shift could help prevent the migration of crypto businesses to more favorable jurisdictions and enhance the US’s position as a global leader in financial technology.

In politics, nothing occurs randomly. If an event transpires, it can be assumed that it was intentionally orchestrated.

As a seasoned crypto investor looking back at the news, I can’t help but reflect on the recent developments regarding 77-year-old Donald Trump. This business mogul-turned-politician has worn many hats throughout his distinguished career, including the MAGA hat. On Thursday, history was made when Trump became the first ex-president in U.S. history to be convicted of a crime – 34 felony counts for falsifying business records, according to a New York jury.

As a crypto investor, I’m keeping an eye on the upcoming U.S. presidential elections and the shifting political alliances. Lately, Trump has been surrounded by Neo-conservatives, evangelicals, and newfound allies from the cryptocurrency community. With his party’s nomination within reach, Trump is eagerly seeking support from various quarters. He’s identified a potentially lucrative voter base in the crypto world and has made it clear through his recent rallies that he values their backing.

As an analyst, I’ve noticed that Trump’s proposed “quid pro quo” approach to engaging with the crypto community, estimated to be around 50 million strong, has resonated well. This strategy, which implies a give-and-take arrangement, seems to have hit a nerve, leading the community to become more vocal in their calls for lenient regulations within the crypto sector.

Trump’s views on cryptocurrency have undergone a notable transformation, starting as a vocal critic but later adopting a more favorable position. This shift reached a peak during his 2024 presidential campaign, with his team accepting crypto donations and making bold promises to the community.

Trump’s stance on cryptocurrencies has evolved throughout the years, shaped by multiple influencing factors as he strives to stay competitive in the political arena.

Early Skepticism and Criticism ( 2019- 2021)

In the summer of 2019, Donald Trump openly expressed his disapproval towards cryptocurrencies such as Bitcoin. He dismissed them as unstable and intangible assets through a tweet, labeling them as “highly volatile and lacking substance.” Trump also raised alarm bells over their involvement in illicit transactions and called for stringent regulatory measures to curb their misuse.

From my perspective as an analyst, I don’t support the use of Bitcoins and other unregulated Cryptocurrencies. They don’t fit the definition of money and their values are subject to extreme fluctuations with little substance behind them. The lack of regulation makes these assets susceptible to facilitating illicit activities such as drug trading and other criminal enterprises.
— Donald J. Trump (@realDonaldTrump) July 12, 2019

In June 2020, according to reports, Trump allegedly instructed Treasury Secretary Steven Mnuchin to take action against Bitcoin and other cryptocurrencies. Following Trump’s skeptical attitude, the administration initiated plans to restrict Bitcoin and digital currencies. This regulatory approach stemmed from wider concerns about the growing influence of cryptocurrencies and their potential threat to conventional financial systems.

Trump’s Love for Dollar

Back in June 2021, I heard Trump voicing his skepticism towards Bitcoin once again. He labeled it as a “scam” and shared concerns about its potential impact on the US dollar‘s dominance. During an interview, he expressed his dislike for Bitcoin by stating, “Bitcoin just seems like a scam to me,” and added, “I’m not a fan because it’s another currency trying to challenge the might of the US dollar.”

Trump: Bitcoin strikes me as suspicious. I’m not a fan. I prefer the US dollar to maintain its status as the global currency.
— August Takala (@RudyTakala) June 7, 2021

Back in the day, Trump openly expressed his preference for the dollar being the global currency. He held reservations towards cryptocurrencies due to their price instability. For him, this volatility was a significant concern that reinforced his negative view towards them. In his perspective, cryptocurrencies were mere digital creations with no tangible backing.

Shift Towards Indifference and Releasing NFT (2022)

In the year 2022, Trump didn’t introduce any significant new crypto regulations or proposals. Although he spoke less frequently about cryptocurrencies, his opinions remained aligned with his earlier skepticism. However, it is worth noting that towards the end of the year, Trump launched his personal NFT (Non-Fungible Token) collection.

In the last month of 2022, Trump unveiled his inaugural NFT (Non-Fungible Token) series, named Trump Digital Cards, which experienced a brisk sale, exhausting its supply within just one day. The enthusiasts of NFTs showed their approval for this collection, resulting in a substantial rise in value on secondary trading platforms.

Trump continued to release additional collections, including two trading card series and a mugshot collection. During the unveiling of one of his NFT collections, he remarked, “NFTs and traditional collectible cards are valuable keepsakes that can be passed down from generation to generation.”

Softening Up & Signs Of Reversal (2023)

In late 2023, I noticed a significant shift in Donald Trump’s perspective on cryptocurrencies. With regulatory pressure from the Biden administration increasing, Trump started to adopt a more lenient stance on digital assets. This change was partly influenced by my growing discontent, as a crypto investor, towards the Biden administration’s approach.

The way the Biden administration handled cryptocurrencies was perceived as overly restrictive and unwelcoming by many in the crypto sector, leading to significant unhappiness. This atmosphere of displeasure may have contributed to Trump’s more favorable stance towards digital currencies, signifying a substantial shift from his previous views.

Locking Horns with Senator Elizabeth Warren

Senator Warren has been deeply engaged in shaping the regulatory framework for cryptocurrencies. Through introducing and advocating for multiple legislative proposals, she seeks to strengthen oversight within the cryptocurrency market. Her stance towards the crypto industry is firm, as she emphasizes concerns related to money laundering and the involvement of digital assets in illicit transactions.

Trump has spoken out against Warren’s views on cryptocurrencies. In stark contrast to her push for tough regulations, Trump is known for his opposition to overly restrictive measures in this area.

Trump’s perspective on Warren’s policies aligns closely with his wider criticism of rigorous regulations. He maintains that these regulations hinder innovation and economic advancement. This perspective gained more intensity as regulatory scrutiny intensified under the Biden administration, which Trump and his supporters consider adversarial towards the crypto sector.

Embracing Cryptocurrency (2024)

By 2024, Trump’s stance on cryptocurrencies has undergone a major shift. In May of that year, his presidential campaign made headlines by revealing its acceptance of cryptocurrency donations via Coinbase Commerce. This development represents a stark contrast to Trump’s earlier criticisms and skepticism regarding digital currencies.

The candidate’s proposal involves assembling a formidable force in support of cryptocurrencies, countering Senator Warren’s stance against them. This approach appears tailored towards engaging the youth demographic and tech-inclined voters who are drawn to digital currencies.

Trump vowed to prevent the introduction of a Central Bank Digital Currency (CBDC) in the US. This view places him among groups concerned about expanded government oversight of monetary exchanges and the possible surveillance implications of such a currency. Trump contends that a CBDC may infringe upon financial confidentiality and autonomy.

Current Position and Promises

Currently, Trump advocates for the crypto sector’s protection against excessive regulation. His presidential bid seeks the crypto community’s backing, highlighting the importance of a welcoming regulatory landscape that encourages growth and keeps the industry from relocating outside of the US.

Trump’s current perspective on cryptocurrencies is marked by his readiness to investigate their role in solving significant economic challenges in the US. His recent comments hinting at Bitcoin’s possible application towards mitigating the national debt reflect a more receptive attitude towards the potential advantages of digital currencies.

Trump’s latest action involves inviting Elon Musk for a talk on cryptocurrency regulations. Should Trump win the election in November, Musk could take on a significant advisory role in this area.

Trump has generated buzz in the cryptocurrency world by declaring his intent to grant clemency to Ross Ulbricht, the mastermind behind Silk Road, a notorious darknet marketplace, who is now serving a life sentence without parole. This vow has gained considerable traction among specific crypto community sectors, reinforcing Trump’s emerging pro-crypto image.

Potential Implication

As a researcher studying the evolution of Trump’s perspectives on cryptocurrencies, I believe that his shifting stance towards these digital assets carries great importance for the regulatory framework and the prospective development of cryptocurrencies within the US borders.

Should he be re-elected, his government might take a more accommodating stance towards cryptocurrencies in regulatory matters. Such an approach could spur increased innovation and investment within the industry. This change could also discourage crypto businesses from relocating to more welcoming territories and strengthen the US’s role as a pioneer in financial technology on a global scale.

2024-05-31 10:13