Trump makes big promises about crypto in US — But can he deliver?

Former president and 2024 Republican presidential candidate Donald Trump has delivered many broken promises in his political career.

This year, Trump has taken up crypto in an attempt to lure in crypto voters. On July 7, the Republican Party unveiled a draft of its political program, and crypto was specifically mentioned under its innovation program, next to the development programs for artificial intelligence and space expansion. The document summarized the main crypto objective of a Trump administration:

“Republicans will end Democrats’ unlawful and unAmerican Crypto crackdown and oppose the creation of a Central Bank Digital Currency. We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and Control.”

The political program was codified following Trump’s comments at the 2024 Bitcoin Conference in Nashville, where he said, “I pledge to the Bitcoin community that the day I take the oath of office, Joe Biden and Kamala Harris’ anti-crypto crusade will be over,” stating firmly that “it will end. It will be done.”

But will Trump really follow through on these bold promises?

Bitcoin “made in the USA”

On June 12, Trump posted on Truth Social that he wanted “all the remaining Bitcoin to be made in the USA,” claiming it would help the US become “energy dominant.” Currently, 90% of the 21-million-capped Bitcoin supply has been mined.

Trump’s aims to bolster the US mining industry and keep Bitcoin production onshore could face significant logistical and regulatory challenges due to the decentralized nature of Bitcoin mining.

Ben Gagnon, CEO of crypto mining firm Bitfarms, told Cointelegraph it’s “absolutely possible and desirable to make America the number one country for Bitcoin mining.”

Gagnon said, “America will solidify its position as the most competitive place to mine Bitcoin in the world if Trump reduces the red tape and increases support and investment for energy and electricity infrastructure.”

Notably, Gagnon admitted that one country can’t mine all the Bitcoin due to its decentralized infrastructure:

“It’s not possible, nor desirable, that 100% of Bitcoin are mined in the US or in any other country.”

Trump’s promise to mine the remaining Bitcoin is not possible and is fundamentally contrary to the core principles of its creator, Satoshi Nakamoto. Centralizing mining operations within a single jurisdiction would dismantle Bitcoin’s foundational value: decentralization.

Crypto can solve the US’ $35 trillion national debt

The national debt is the total amount of outstanding borrowing by the US federal government accumulated throughout the nation’s history. 

According to Fiscal Data, over the past 100 years, the US federal debt has increased from $394 billion in 1924 to over $35 trillion in 2024.

The mounting debt poses a looming risk, potentially leading to severe long-term economic challenges.

During an event related to his non-fungible token collection, Trump claimed that “crypto has got a great future. I think it really does. Maybe we will pay off the $35 trillion in crypto.”

Ric Edelman, founder of the designation program for advisers platform Digital Assets Council of Financial Professionals, told Cointelegraph he believes crypto could aid the chronic US national debt issue:

“I have no doubt that a Bitcoin reserve could sharply reduce and even perhaps eliminate our national debt.”

However, he said he feels equally confident that “Trump would not succeed in his efforts to create such a reserve fund, or if he did, his successor would eliminate it.” Edelman admitted Trump’s claim is a “fun sound bite on the campaign trail, but that’s all it is.”

The US will create a strategic Bitcoin reserve

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

Trump’s plan is for the US to hold 100% of the Bitcoin currently in its possession. Many of those assets stem from seizures by law enforcement in criminal cases, which could challenge his plan.

Almost half of the government’s Bitcoin stockpile originates from a significant seizure following the Bitfinex hack. Since these assets belong to affected victims, there’s legal pressure to return the funds to Bitfinex or the impacted parties.

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Fortunately for Trump’s plan, Senator Cynthia Lummis introduced a bill to establish a Bitcoin strategic reserve, which, if approved, would create a Bitcoin fund to hedge against the national debt. The goal is to acquire 1 million BTC over five years to hold for at least 20 years.

With backing in Congress, Trump’s plan to create a Bitcoin reserve may actually have a chance of seeing the light of day. Still, it will require a number of fellow lawmakers to realize Bitcoin’s potential.

Fire Gary Gensler “on day one”

Many in the cryptocurrency industry have criticized the US Securities and Exchange Commission for “regulating by enforcement.”

Under Chair Gary Gensler, the commission has opened multiple cases against major crypto firms for allegedly selling unregistered securities.

The US crypto industry has been pushing hard for regulatory clarity, claiming that current SEC guidance remains ambiguous. According to industry observers, this lack of clear rules creates uncertainty, hindering market engagement and growth within the US crypto sector. 

One of Trump’s most crystal clear promises is that he will 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. However, can he actually fire Gensler?

Firing the SEC chair may not be as easy as Trump thinks. While he would not require Senate approval to fire Gensler, throwing out an influential regulator so unceremoniously could set a dangerous precedent and face political backlash.

The president must dismiss the SEC chair “for cause,” meaning that Trump must justify the dismissal on the grounds of neglect, inefficiency or some other form of malfeasance. Furthermore, the entire process of establishing cause, legal reviews and administrative transitions could take over a year.

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

Stop the development of a US CBDC

Trump has pledged to stop any development of a central bank digital currency (CBDC) by the US Treasury, signaling his opposition to increased governmental control over digital assets.

During the Bitcoin Conference in Nashville, Trump claimed, “There will never be a CBDC while I’m president of the United States,” describing the technology as an imminent threat to financial privacy.

Trump is not alone: Many Republican politicians have made public statements against CBDCs, with the governor of Florida, Ron DeSantis, signing a bill to restrict their use in the state.

Congressman Tom Emmer introduced the CBDC Anti-Surveillance State Act, prohibiting the Federal Reserve from issuing a CBDC without congressional approval. The bill is still in committee.

Set Silk Road operator Ross Ulbricht free

During the Libertarian National Convention, Trump said that — again on “day one” — he would commute the sentence of Ross Ulbricht, who founded the darknet market Silk Road, which permitted the illegal trading of drugs, weapons and other unlawful goods.

Ulbricht’s sentence is highly controversial due to its severity — a double life sentence plus 40 years without parole — for nonviolent crimes.

Critics argue that his punishment is excessive compared to sentences for similar offenses, pointing to issues of judicial overreach, precedent for digital-age crimes, and concerns about the criminal justice system’s handling of first-time, nonviolent offenders.

“We’re going to get him home,” Trump assured, claiming he’s already had enough jail time, as “he’s already served 11 years.”  

Trump could quickly enact his promise, as a US president has the power to reduce the length of a sentence or grant relief from a conviction for federal offenses.

A commute wouldn’t absolve Ulbricht from his conviction but would allow his early release.

Create a crypto advisory council for precise crypto policies

Crypto is a broad and complex topic, especially for regulators. Trump said in Nashville that if reelected, he would create a presidential advisory committee to ensure a solid regulatory framework for crypto becomes law.

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

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Trump said that the task of the crypto council would be to “design transparent regulatory guidance for the benefit of the entire industry, and they will get it done in 100 days.”

Pseudonymous crypto market analyst and trader Crypto Rand previously told Cointelegraph that this promise may be one of the most significant, as he believes Congress and the SEC have repeatedly demonstrated their lack of understanding of the crypto industry and its dynamics. 

Crypto self-custody as a right

Trump has further promised to enshrine a right to self-custody for crypto users, effectively codifying “not your keys, not your coins” into US federal law.

Trump’s commitment to crypto self-custody is bolstered by legislation proposed by Republican Senator Ted Budd. He introduced the Keep Your Coins Act in the Senate on Nov. 7, 2023, which aims to prohibit restrictions on Americans’ ability to transact through self-hosted crypto wallets.

The Republican lawmaker’s legislation stands at odds with a measure proposed by Democratic Senator Elizabeth Warren in 2022. Dubbed the Digital Asset Anti-Money Laundering Act, the bill would require crypto-market participants to identify and track users with self-custodial wallets, including crypto wallet service providers, miners and validators, among others.