Donald Trump wants the US to regulate the Bitcoin mining industry

US President Donald Trump has said he wants all future Bitcoin to be produced in the US after meeting with key industry experts.

On June 12, Trump met with Riot Platform CEO Jason Les and Brian Morgenstern, chief public policy officer.

Afterward, Trump took to Truth Social to express his support for domestic mining companies:

To get an insider's view of Trump's Bitcoin (BTC) epiphany, Cointelegraph spoke to Greg Zim, CEO of Stronghold Digital Mining and Apollo's former head of energy.

“The United States should be a leader in supporting and securing bitcoin over a sovereign-backed currency,” asserted Beard.

Also, according to Zim, US President Joe Biden is fighting Bitcoin's corner alongside Trump:

“As Bitcoin miners, we are a new and mature industry. We believe in what we are doing and we think that Bitcoin is a real asset for American society and beyond. We hope to have the support of any administration.

The beard may get his wish. Although the Biden camp has not been forthcoming in its support so far, the campaign is believed to be working behind the scenes to facilitate crypto donations in the near future.

Big time for Bitcoin

At X, the Bitcoin community responded positively to Trump's intervention. Jan3 CEO Samson Mou was among the most bullish about the long-term implications of Trump's endorsement.

“I guarantee this move from Trump will be discussed behind closed doors by governments around the world,” Mow said on June 13.[Mainstream media] The news media is talking about it. We have seen [the Industrial and Commercial Bank] Accepted #Bitcoin in China yesterday. This pushes everything further forward.

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Another X user wrote: “You never knew Donald Trump if you didn't think that his second term would make #Bitcoin's price a daily metric.”

However, not everyone was so impressed. Unchained Podcast host Laura Sheen was one of the dissenting voices.

Sheen asked, “Why does everyone respect Trump and say all bitcoins have to be made in the USA? Doesn't that create a judicial risk and make #Bitcoin decentralized and vulnerable? Why did you applaud that? I do not understand.”

However, ShapeShift founder Eric Voorhees told Trump not to get bogged down in the specifics.

Voorhees described Trump's comments as “absurd” that betrays a “lack of understanding of the Bitcoin and a broader understanding of economics.”

But in the end, Voorhees said: “A statement like this means a generally welcoming environment for Bitcoin in the US, which is great.”

Opposite view

That contradicts a report by Kerrisdale Capital, an investment firm that blasted Trump's US bitcoin mining industry. According to a report published earlier this month, “Bitcoin mining is easily one of the worst business models of a public company we've ever seen.”

According to Sahm Adrangi, chief investment officer of Currisdale Capital, the United States should look further than bitcoin when looking for a cryptocurrency to nurture. In particular, Adrangi raised concerns about the energy consumption and sustainability of Bitcoin mining.

“I believe that the United States does not want to support Bitcoin. There are many other cryptocurrencies that can take its place that do not use all this energy,” Adrangi told Cointelegraph.

“I think the whole industry should just be kicked out of the United States,” he added.

Kerrisdale Capital is shorting shares of Riot Platforms, one of the largest mining companies in the United States. As part of Kerrisdale's crackdown on riots, Adrangi contacted state legislators and recommended preferential treatment, such as tax breaks.

But while Adrangi was seeking the ear of state legislators, Riot was aiming higher.

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Lawmakers at all levels are coming to terms with the industry's potential, Beard told Cointelegraph.

“Bitcoin mining increases energy efficiency, and people and policy makers are starting to get it,” he said. “Bitcoin miners have access to intermittent demand. This allows miners to adjust their power usage and send power to the grid in real time.

As for Trump's assertion of power supremacy, Beard explained how bitcoin mining could help stabilize the grid.

“Nowadays, we are beginning to feel the effects of the rapid expansion of intermittent and finite sources such as solar and wind. Bitcoin Mining provides a flexible load solution to balance the grid and support the transition to renewable energy.