Regulation
Trump says US must dominate cryptocurrency sector, citing Chinese competition
“If we don’t embrace the technology of cryptocurrencies and bitcoin, China will, and other countries will. They will dominate, and we can’t let China dominate. They’re already making too much progress,” Trump said.
China has cracked down on cryptocurrencies and implemented strict controls on capital movements across its border. But Chinese people can still trade tokens such as bitcoin on cryptocurrency exchanges, and Chinese investors can also open bank accounts abroad to buy crypto assets.
Trump said he would establish a presidential advisory council on cryptocurrencies and create a national bitcoin “stockpile” using cryptocurrency that the U.S. government currently holds and much of which has been seized in law enforcement actions.
Multiple cryptocurrencies on a Chinese flag. Photo: Shutterstock
“Never sell your bitcoin,” Trump said. “If elected, it will be the policy of my administration, the policy of the United States of America, to retain 100% of all bitcoin that the United States government currently holds or acquires,” he said.
Trump added that he would like to see bitcoin mining expanded by American companies, even as he called the cryptocurrency a “scam” in 2021.
Bitcoin’s price initially fell after Trump’s speech, but then rebounded and was last trading up 0.94% at $68,182.
Trump also reiterated that he would commute the sentence of Ross Ulbricht, who was serving a life sentence for creating and operating the Silk Road website, which allowed users to secretly buy and sell drugs and other illegal goods.
Ulbricht’s sentence was “enough,” Trump said to cheers and chants of “Free Ross” from the crowd.
Countries around the world, including the United States, have expressed concern that private and highly volatile digital currencies could undermine government control of financial and monetary systems, increase systemic risk, foster financial crime, and harm investors.
02:06
Kamala Harris, a pioneer aiming for America’s highest glass ceiling
Kamala Harris, a pioneer aiming for America’s highest glass ceiling
Digital asset advocates say cryptocurrency users are becoming a growing political force this election cycle, though it’s unclear how many users would prioritize crypto over other issues at the ballot box.
Some cryptocurrency proponents support Trump, and any move by the United States to create a national bitcoin reserve would likely be seen by them as a major move to legitimize cryptocurrency.
Jack Mallers, CEO of global bitcoin app Strike, said Trump’s proposal to create a strategic bitcoin reserve was an “incredible vote of confidence.”
Meanwhile, cryptocurrency industry executives are unhappy with the Securities and Exchange Commission’s enforcement actions under US President Joe Biden.
The agency alleged that several cryptocurrency companies, including Coinbase and Binance, facilitate the trading of digital assets on their platforms that should have been registered as securities, something the companies deny.
A group of nearly 30 Democratic lawmakers and congressional candidates sent a letter to the Democratic National Committee and Harris on Saturday, urging them to take a “forward-looking” approach to digital assets.
“From an electoral perspective, cryptographic and blockchain technologies have a considerable impact in ensuring victory at all levels of the ballot,” they wrote.