With Donald Trump set to be inaugurated as President of the United States on Monday, cryptocurrency stands as an unlikely part of his path back to power. The story of his return to the White House cannot be told without acknowledging how digital assets helped boost his political fortunes after his departure in 2021. Since his victory in November, Bitcoin rose from $75,000 to an all-time high of $108,135 on December 17, 2024, a 44% jump.
During his 2024 campaign, Trump made several significant promises to the crypto community. Alexander Blume, CEO of Two Prime, an SEC-regulated Registered Investment Advisor specializing in digital asset derivatives, told Quartz in an email that Trump’s initial actions on crypto will be under intense scrutiny in the early days of his return.
Here are three of the big promises that Trump has made to the industry.
Speaking at the Bitcoin conference in July 2024, Trump set forth an ambitious vision: the establishment of a national Bitcoin reserve. This bold proposal has energized the crypto community.
This promise could backfire if not fulfilled immediately. Blume told Quartz in an email that Trump’s actions on the first day could lead to volatility for Bitcoin.
“Either he [Trump] will sign an executive order day one for a Strategic Bitcoin Reserve or the markets will be disappointed in the short term,” Blume said.
While Trump has yet to provide specifics or a timeline for this potential reserve, the fact that Bitcoin has become a focal point in his agenda has stirred considerable excitement.
In his speeches leading up to the election, Trump painted a bold vision for the United States as a global hub for cryptocurrency, particularly crypto mining. During his speech at the Bitcoin conference, Trump even compared Bitcoin to the steel industry of a century ago, which once powered American progress and prosperity. “Bitcoin,” he declared, “is the steel of the future,” and he wants it to be “mined, minted, and made” on American soil.
He met with executives from prominent crypto mining firms last year, listening closely to their challenges and discussing ways to enhance the industry’s growth. This pro-crypto stance sent a surge of optimism through the industry, especially among major crypto mining companies like MARA Holdings Inc. (formerly Marathon Digital Holdings) (MARA+8.90%) and Riot Platforms (RIOT+0.82%), whose stocks soared after Trump’s victory, buoyed by the prospect of a regulatory environment that could make the U.S. a more competitive player in the global crypto landscape.
Trump also promised to commute the life sentence of Silk Road mastermind Ross Ulbricht, who is serving a double life sentence.
Ulbricht founded the Silk Road in 2013, a notorious dark web marketplace that facilitated illegal activities such as drug trafficking through Bitcoin transactions. In 2015, Ulbricht was convicted of several crimes, including money laundering, computer hacking, and narcotics trafficking. He is currently serving a double life sentence (50 years) plus an additional 40 years, totaling 1080 months, without the possibility of parole.
Blume stated that the market is anticipating announcements regarding the release of Ross Ulbricht from prison on the first day. While it remains to be seen how Trump would achieve this, the crypto community has once again started campaigning for Ulbricht’s freedom following Trump’s victory, using the hashtag #FreeRoss on X.
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