Trump made big promises about crypto in America – but can he deliver?

Former President and 2024 Republican presidential candidate Donald Trump has made many broken promises during his political career.

This year, Trump adopted crypto in an attempt to attract crypto voters. On July 7, the Republican Party released the draft of its political program, and crypto was specifically mentioned under the innovation program, next to the development programs on artificial intelligence and space expansion. The document summarizes the main objectives of the Trump administration:

“Republicans will stop the Democrats' illegal and un-American invasion of Crypto and oppose the creation of a central bank digital currency. We will defend the right to bitcoin, and ensure that every American has the right to protect their digital assets and trade them free from government surveillance and control.

The political agenda follows Trump's comments at the 2024 Bitcoin Conference in Nashville, “I pledge to the Bitcoin community that the day I take the oath of office, the anti-crypto crusade of Joe Biden and Kamala Harris will end.” “It will end,” they insisted. It will be done.”

But will Trump really follow through on these bold promises?

Bitcoin “Made in America”

On June 12, Trump posted on Truth Social that he wanted “the rest of Bitcoin to be made in the USA,” saying it would help the U.S. become “power dominant.” Currently, 90% of the 21 million cap Bitcoin supply has been mined.

Trump's intentions to bolster the U.S. mining industry and keep Bitcoin production offshore may face significant logistical and regulatory challenges due to the decentralized nature of Bitcoin mining.

Ben Gannon, CEO of crypto mining company BitFarms, told Cointelegraph that “making the US a single country for Bitcoin mining is very possible and desirable.”

“If Trump cuts red tape and increases support and investment in energy and electricity infrastructure, America will strengthen its position as the most competitive place in the world to produce bitcoin,” Gannon said.

Specifically, Gannon acknowledges that a country cannot mine all bitcoins due to its decentralized infrastructure.

“It is neither possible nor desirable for 100% of Bitcoin mining to be produced in the US or any other country.”

Trump's promise to mine the rest of Bitcoin is impossible and fundamentally against the founding principles of its creator, Satoshi Nakamoto. Centralizing mining operations to a single authority destroys Bitcoin's fundamental value: decentralization.

Crypto Could Solve America's $35 Trillion National Debt

The national debt is the total amount of debt owed by the U.S. federal government over the history of the nation.

According to Fiscal Data, over the past 100 years, the U.S. federal debt has grown from $394 billion in 1924 to more than $35 trillion in 2024.

Ever-increasing debt poses a significant risk, which can lead to serious long-term economic problems.

“Crypto has a great future,” Trump said at an event related to his irreversible token collection. I think it really does. We will probably pay $35 trillion in crypto.

Rick Edelman, founder of the Digital Assets Council of Financial Professionals designation program for advisors platform, told Cointelegraph that he believes crypto can help the chronic US national debt issue.

“I have no doubt that Bitcoin reserves will significantly reduce and possibly even eliminate our national debt.”

However, he said he feels equally confident that “Trump will either fail in his efforts to create such a reserve fund, or if he does, his successor will remove it.” Edelman acknowledged that Trump's claim was “an interesting soundbite on the campaign trail, but that's all.”

US Creates Strategic Bitcoin Reserve

In addition to making the United States the world leader in Bitcoin mining, Trump also plans to create a strategic Bitcoin stockpile.

Trump's plan is for the US to have 100% of Bitcoin in its hands right now. Many of these assets stem from law enforcement seizures in criminal cases, which can challenge the plan.

About half of the government's Bitcoin reserves stemmed from a major crash following the Bitfinex hack. Since these assets belong to the affected victims, there is legal pressure to return the funds to Bitfinex or the affected parties.

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Fortunately for Trump's plan, Senator Cynthia Lammis has introduced a bill to establish the Bitcoin Strategic Reserve, which, if passed, would create a Bitcoin fund to protect against the national debt. The goal is to earn 1 million BTC in five years to hold for at least 20 years.

With the support of Congress, Trump's plan to create a bitcoin reserve may have a chance to see the light of day. However, it will take a number of allied lawmakers to realize Bitcoin's potential.

Fire Gary Gensler “On Day One”

Many in the cryptocurrency industry have criticized the U.S. Securities and Exchange Commission for being “overzealous.”

Under Chairman Gary Gensler, the commission has opened several cases against major crypto firms for selling unregistered securities.

The US crypto industry has been pushing hard for regulatory clarity, arguing that current SEC guidance is ambiguous. According to industry observers, this lack of clear regulations creates uncertainty, market participation and growth in the US crypto sector.

One of Trump's clearest promises was that he would fire Gensler “on day one.”

Trump argues that new leadership will bring a more crypto-friendly regulatory environment and help the US crypto industry grow. But can he fire Gensler?

Firing the SEC chair may not be as easy as Trump thinks. While he doesn't need Senate approval to fire Gensler, ousting an influential comptroller would set a dangerous precedent and could face political backlash.

The president must fire the SEC chair “for cause,” meaning Trump must justify the dismissal as negligence, ineffectiveness or other misconduct. In addition, the entire process of causation, legal reviews and administrative transitions can take more than a year.

So, Trump will have to live with Gensler for a while before someone new comes in.

Stop the growth of the US CBCC

Trump has vowed to halt any central bank digital currency (CBCC) development by the US Treasury, signaling increased government control over digital assets.

At a bitcoin conference in Nashville, Trump said, “There will never be a CBCC while I'm president of the United States,” describing the technology as a threat to financial privacy.

Trump is not alone: ​​Several Republican politicians have made public statements against CBCCs, with Florida Governor Ron DeSantis signing a bill to limit their use in the state.

Congressman Tom Emmer has introduced the CBC Anti-Surveillance Act, which would prohibit the Federal Reserve from issuing CBC securities without congressional approval. The bill is still in committee.

Prepare Silk Road operator Ross Ulbricht for free

During the Libertarian National Convention, Trump said – again “on day one” – that he would reverse the Silk Road founder Ross Ulbricht's sentence, allowing illegal trade in drugs, weapons and other illegal goods.

Ulbricht's sentence is highly controversial because of its severity — double life in prison and 40 years without parole — for nonviolent crimes.

Critics argue that the sentence is excessive compared to sentences for similar crimes, pointing to issues of miscarriage of justice, digital-age crimes and the criminal justice system's concern about first-time non-violent offenders.

“We're going to bring him home,” Trump said, saying he had served enough jail time.

Because the US president has the power to reduce the length of sentences or grant immunity for federal crimes, Trump can quickly implement his promises.

A commutation would not exonerate Ulbricht, but it would allow him to be released early.

Create a crypto advisory council for proper crypto policies

Crypto is a broad and complex topic, especially for regulators. If re-elected, Trump said in Nashville that he would create a presidential advisory committee to ensure a strong regulatory framework for crypto becomes law.

“We will have regulations, but from now on the regulations will be written not by people who hate your industry, but by people who love your industry,” Trump said.

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Trump said the crypto council's task would be to “draft clear regulatory guidance for the benefit of the entire industry and get it done within 100 days.”

Anonymous crypto market analyst and trader Crypto Rand previously told Cointelegraph that he believes Congress and the SEC have repeatedly shown a lack of understanding of the crypto industry and its dynamics, so this prospect may be one of the most important.

Crypto self-preservation as a right

Trump has promised to protect the right of crypto users to protect themselves by enshrining “your coins, not your keys” into US federal law.

Trump's commitment is backed by legislation introduced by Republican Sen. Ted Budd. In the year On November 7, 2023, the Keep Your Coins Act was introduced in the Senate, which aims to prevent restrictions on Americans' ability to transact with self-hosted crypto wallets.

Republican Legislature It contrasts with a measure proposed by Democratic Sen. Elizabeth Warren in 2022. Dubbed the Digital Asset Anti-Money Laundering Act, the bill requires crypto-market participants to identify and track users of self-managed wallets, including cryptocurrencies. Wallet service providers, miners and validators, among others.