Donald Trump, the newly elected US president, promises changes to the cryptocurrency industry. His plans include promoting bitcoin mining, creating strategic bitcoin reserves and rejecting the creation of a central digital currency (CBDC). He has also promised to fire Gary Gensler, the SEC chairman, over his approach to cryptocurrency projects.
The removal of Gary Gensler from the head of the SEC
Trump said on the campaign trail that on his first day in office he would remove Gary Gensler as SEC chairman, who has been criticised for his approach to regulating cryptocurrency companies. Gensler is known for his tough stance on cryptocurrencies, and many companies welcome the possibility of a friendlier approach.
Trump’s plans include commuting the sentence for Ross Ulbricht, the founder of Silk Road. Ulbricht is currently imprisoned for life for running a website where various, often illegal, products could be purchased with bitcoins. Supporters of Ulbricht say his sentence is disproportionately harsh.
Support for bitcoin mining in the US
Trump has expressed his support for bitcoin mining and plans to create favourable conditions for this activity in the US. The pledge has raised hopes in the crypto community, where it is believed it could help overcome environmental concerns about bitcoin mining and provide stability in the rules for the industry.
As part of other promises, Trump plans to create strategic reserves in bitcoin, similar to oil reserves. The move should provide the US with greater economic stability and strengthen the dollar, his supporters say. Trump has also announced that he will prevent the introduction of a central bank digital currency (CBDC), which some governments are considering. There is mixed opinion in the crypto community about CBDCs, but many appreciate Trump’s opposition to their introduction.
Although Trump’s promises have piqued interest, Shapeshift founder, Eric Vorhees, has called Trump’s economic plans overly nationalistic and warned against over-expectations.
