The price of Bitcoin was nothing special until Donald Trump won the 47th presidential election. Now, Bitcoin is soaring to an all-time high, fueled by his promises to revolutionize the crypto landscape.
It is not a secret that a lot of Americans either hold crypto or work in crypto. By 2024, around 28% of American adults owned some form of cryptocurrency. They are waiting to see what policies their new president will implement regarding crypto. Their crypto enthusiasm has a huge influence on the global crypto market.
During his campaign, Donald Trump promised to remove many of the regulations that the SEC has imposed on crypto in recent years. The SEC argues that these regulations protect investors from fraud and scam thievery, which are very common in the crypto space.
Trump is promising a new era of crypto in America, which is why you see a price like this. Investors are watching closely, and the market is reacting. But is the dawn of a golden age for crypto, or just another unpredictable rollercoaster ride under Trump’s leadership?
The Trump Factor: Where Does He Stand on Crypto?
Trump has never been a fan of crypto. During his first term in 2019, he publicly said that he was not a believer in crypto. He also said that crypto was based on ‘thin air’. Fast forward to today, the world of digital assets has evolved dramatically. His stance and policies during his first regime are known for crypto’s unpredictability.
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In Trump’s second term, his crypto policy has been a little different from his previous regulatory approach. Previously, he called cryptocurrencies a ‘scam’ and put heavy regulation to prevent competition with the US Dollar. He was concerned that cryptocurrencies might take over the US Dollar from people’s attraction as it was getting popular because of its decentralized system. However, during his election campaign in 2024, he showed significant support for the crypto industry and assured that he would make the USA a crypto powerhouse.
In a bold statement, Trump assured his supporters:
“A US crypto reserve will elevate this critical industry after years of corrupt attacks by the Biden Administration, which is why my executive order on digital assets directed the Presidential Working Group to move forward on a crypto strategic reserve that includes XRP Ledger (XRP), Solana SOL, and Cardano (ADA). I will make sure the US is the Crypto Capital of the world. We are making America great again.”
The previous administration, the Joe Biden administration, took a more cautious and regulatory approach toward cryptocurrencies. In 2023, the administration proposed a 30% tax on cryptocurrency. Furthermore, the Securities and Exchange Commission (SEC) under Biden’s tenure took numerous actions against some major cryptocurrencies.
Trump’s current policies, including the nomination of crypto supporter Paul Atkins to replace Gary Gensler as SEC chairman, indicate a more favorable outlook toward the crypto industry and crypto enthusiasts.
Making his intentions clear, Trump said:
“On day one, I will fire Gary Gensler, and I will appoint a new SEC chairman who believes America should build the future, do not block the future.”
What the US Strategic Crypto Reserve is expected to do
Donald Trump is a businessman at heart and always acts with a business mindset. He only favored those industries he saw as beneficial to the US economy.
Trump’s aim behind supporting cryptocurrencies and establishing a Crypto Strategic Reserve is to enhance the legitimacy and acceptance of cryptocurrencies. This will potentially impact the growth of the US economy.
Revealing the government’s significant crypto holdings, Trump said:
“The federal government has almost 210,000 bitcoin or 1% of the total supply that will ever exist.”
Besides, this initiative could give the US government the power to influence regulatory approaches to digital assets. By holding a diversified portfolio of cryptocurrencies, the US government might be in a better position to influence global crypto regulations and standards. This move could also encourage other nations to take similar steps like the USA, which might increase the value of the crypto industry.
The US government currently holds an estimated $19 billion in Bitcoin. Most of them were acquired primarily through seizures linked to criminal cases. It remains to be seen whether the reserve will solely comprise these assets or if additional acquisitions are planned.
Regulation Impacts on Crypto Holders
If the US wants to be a crypto-friendly hub, regulations must be clear and supportive of blockchain businesses. The current tax report system in the US is overly complex. This creates so many unnecessary gray areas that leave individual crypto holders and businesses struggling to navigate unclear obligations.
Beyond taxation, security is another major concern. Without clear, enforceable security standards, investors remain vulnerable. There would still be a high chance of money laundering and other criminal activities.
If Washington moves cautiously, the US can create a financial system where individuals, startups, and communities thrive. This result will make the US a leader in digital finance.
