Former President Donald Trump made history as the first sitting U.S. president to speak at a crypto conference, pledging to establish the U.S. as a leader in cryptocurrency and Bitcoin. He announced policies favoring digital assets and revealed plans for a Strategic Bitcoin Reserve. While his initiatives received mixed reactions, Congress is considering new legislation to expand government crypto holdings, signaling a complex yet evolving landscape for digital currencies in the U.S.
In a historic moment at the Blockworks Digital Asset Summit in Manhattan, former President Donald Trump made headlines as the first sitting U.S. president to address a crypto conference. He reiterated his ambition to transform the United States into a leading hub for cryptocurrency, particularly Bitcoin, and criticized the previous administration’s regulatory strategies. Pledging to dismantle initiatives like “Operation Choke Point 2.0,” Trump announced favorable policies towards digital assets, aiming to quell regulatory restrictions on cryptocurrency firms.
Since stepping into office, Trump has taken notable actions regarding digital assets, launching the Working Group on Digital Assets and instituting a Strategic Bitcoin Reserve. Instead of liquidating seized Bitcoin, his administration plans to hold these assets, a stark contrast to the Biden administration’s selling practices. Trump believes this approach will prevent the U.S. from unloading Bitcoin at low prices, a practice he tied to Biden’s policies.
While institutional investors have largely supported Trump’s advances in crypto, skepticism lingers within the Bitcoin community. Critics like Bitcoin maximalist Justin Bechler view the recent White House Crypto Summit as an event favoring lobbyists over genuine digital asset innovation. Treasury Secretary Scott Bessent stressed the significance of regulating stablecoins to uphold the U.S. dollar’s supremacy, while White House adviser Bo Hines hinted at potential legislation for stablecoins in the near future.
Despite Trump’s enthusiasm for Bitcoin, the market reacted unfavorably following his Strategic Bitcoin Reserve announcement. Bitcoin’s price, which had briefly exceeded $92,000, suddenly dropped 5.7% shortly after the announcement, spiraling downwards and culminating in a total decrease of 7.3% before slightly recovering to $87,200. Investors anticipated direct purchases from the government but were instead met with plans to keep confiscated Bitcoin.
Legislative actions are on the horizon as Congress deliberates new bills to expand governmental crypto holdings. Senator Cynthia Lummis’s BITCOIN Act aims to permit up to $80 billion in Bitcoin acquisitions, and Representative Byron Donalds’s proposed bill would enable federal agencies to add Bitcoin to their reserves under budget-neutral constraints. Trump has urged lawmakers to simplify and clarify crypto regulations, projecting that this would spur institutional investment and technological advancement.
This isn’t the first time Trump has vocalized support for Bitcoin; at the Bitcoin 2024 conference, he encouraged supporters to “never sell your Bitcoin,” asserting that all government-held Bitcoin would be retained under his watch. His three-minute address at the Blockworks summit was announced just a day prior, signaling increasing mainstream recognition alongside ongoing concerns regarding government oversight of digital currencies.
Trump’s groundbreaking address at the Blockworks Digital Asset Summit signifies a pivotal moment for cryptocurrency’s legitimacy in political discourse. His commitment to fostering a supportive environment for digital assets, alongside proposed legislative efforts, may encourage institutional investment. However, skepticism from some sectors of the crypto community underscores the challenging dynamics between crypto innovation and regulatory frameworks. As Congress moves towards potential legislation, the future of Bitcoin in the U.S. remains both promising and precarious.
Original Source: coinmarketcap.com
