Trump advocates for crypto at Bitcoin conference, promises US dominance over China

Trump for Crypto: Republican presidential candidate Donald Trump addressed a Bitcoin conference on Saturday, asserting that the US must dominate the cryptocurrency sector to prevent China from taking the lead. This marks a major shift for Trump, who previously dismissed cryptocurrency as a “scam.”

Speaking at the Bitcoin 2024 convention in Nashville, Trump positioned himself as the pro-cryptocurrency candidate ahead of the November 5 presidential election. He promised to make the US the world's cryptocurrency leader with more favourable regulations than those proposed by likely Democratic nominee Vice President Kamala Harris.

The Republican Party has pledged lighter regulation for crypto, and Trump criticised Democrats' attempts to regulate the sector. "If we don't embrace crypto and bitcoin technology, China will, other countries will. They'll dominate, and we cannot let China dominate. They are making too much progress as it is," Trump said.

Although China has cracked down on cryptocurrency and imposed strict controls on capital movement, people there still trade tokens like bitcoin on crypto exchanges. Chinese investors can also open overseas bank accounts to buy crypto assets.

Trump proposed establishing a crypto presidential advisory council and creating a national "stockpile" of bitcoin using cryptocurrency seized by the US government in law enforcement actions. "Never sell your bitcoin," Trump said. “If I am elected, it will be the policy of my administration, the United States of America, to keep 100 per cent of all the bitcoin the US Government currently holds or acquires into the future.”

Despite previously calling cryptocurrency a "scam" in 2021, Trump expressed support for expanding bitcoin mining by U.S. firms. The price of bitcoin initially dipped after Trump's speech but later rebounded, ending up 0.94 per cent at $68,182.

Trump also reiterated his intention to commute the sentence of Ross Ulbricht, who is serving a life sentence for creating and operating the Silk Road website, which facilitated the illegal trade of drugs and other products. Ulbricht's time served was "enough," Trump said, drawing applause and chants of "Free Ross" from the audience.

Governments worldwide, including the US, have expressed concern that privately operated, highly volatile digital currencies could undermine financial and monetary systems, increase systemic risk, promote financial crime, and harm investors. However, digital asset proponents argue that cryptocurrency users are becoming a significant political force this election cycle, although it remains unclear how many will prioritise crypto at the ballot box.

Some crypto advocates back Trump, viewing his proposal for a national bitcoin reserve as a major step towards legitimising cryptocurrency. Jack Mallers, CEO of global bitcoin app Strike, described Trump's proposal as an “unbelievable vote of confidence.”

Meanwhile, crypto executives are frustrated with the Securities and Exchange Commission's enforcement actions under US President Joe Biden. The agency has accused several crypto companies, including Coinbase and Binance, of facilitating the trading of digital assets that should have been registered as securities, which the firms deny.

A group of nearly 30 Democratic lawmakers and Congressional candidates sent a letter to the Democratic National Committee and Harris, urging a "forward-looking" approach to digital assets. "From an electoral standpoint, crypto and blockchain technologies have an outsized impact in ensuring victories up and down the ballot," they wrote.

(With Reuters inputs)