Trump's Crypto Combover
“Bitcoin, it seems like a scam. I don’t like it because it’s another currency competing with the dollar.”
That was Trump in 2021 on Fox Business.
Well…
The Don just pulled the mother of all crypto flip-flops at the Nashville Bitcoin conference last weekend.
There, he declared:
"Those who say that Bitcoin is a threat to the dollar have the story exactly backwards. I believe it is exactly backwards. Bitcoin is not threatening the dollar. The behavior of the current US government is really threatening the dollar."
He now wants America to be "the crypto capital of the planet and the Bitcoin superpower of the world."
In short, Trump didn't just dip his toe in the crypto waters – he cannonballed right into the deep end.
But…
Something else might be happening here. Trump’s pivot on crypto might really be a bigger bid for… Wall Street?
Hear me out. (If you own crypto, it’s still going to be good for your bags.)
Before we investigate, let’s break down the highlights of his speech.
CBDCs, U.S. Reserves, and Cypherpunks
First up, Trump vowed to shut down any efforts to create a central bank digital currency (CBDC).
"It's over, forget it," he declared. "There will never be a CBDC while I'm president of the United States."
Trump pledged to keep 100% of the Bitcoin currently held by the U.S. government. That's right, folks – The Donald wants Uncle Sam to HODL.
"This will serve in effect as the core of the Strategic National Bitcoin stockpile," Trump proclaimed.
No less…
In a move that's making the hardcore cypherpunks swoon, Trump repeated his pledge to commute the sentence of Silk Road founder Ross Ulbricht.
"It's enough," he said, referring to Ulbricht's time served.
Now, here's where things get interesting.
Trump went full "drain the swamp" on crypto regulators.
He promised to fire SEC Chairman Gary Gensler faster than you can say "orange grove."
His exact words? "On day one I will fire Gary Gensler and appoint a new SEC chairman who believes America should build the future, not block the future."
Now, this is where the rubber meets the macadam.
Gensler.
Look, whether you love Trump or hate him, this speech is a big deal for crypto. It's the political equivalent of Warren Buffett buying Bitcoin – it legitimizes crypto in a whole new way.
But let's not kid ourselves.
Trump admitted he's courting the millions of Americans involved with crypto.
"I've heard from some of your great geniuses that talk to me about this subject," he said. Translation: Someone told me there are a lot of crypto votes up for grabs.
But perhaps there’s an even bigger angle here - part of that “4D chess” everyone talks about.
Big Finance and crypto have a complex relationship - sometimes at odds, sometimes aligned. But both have had issues with SEC Chair Gary Gensler's approach.
CEOs like Virtu's Doug Cifu and Citadel's Ken Griffin blasted his regulatory moves, especially on market structure.
Jamie Dimon and Charles Schwab have also voiced concerns. They argue Gensler's agenda is too aggressive, potentially damaging market efficiency, unfairly targeting certain financial sectors.
Gary’s gone after everything from short selling, stock buybacks, and how brokers make money to how private equity firms report their performance. He also put the brakes on SPACs.
So… when some of them hear Trump say “Gensler’s gone!”?
He might be speaking to crypto, yes. But he knows more than crypto is listening.
Whatever the case…
Crypto is Here to Stay
One thing's for sure:
Bitcoin and crypto are officially in the political mainstream.
And the 2024 election cycle is going to be wilder than a State of the Union address delivered as an NFT.
Funny thing is… that could actually happen.
