Thousands gathered at the Bitcoin 2024 conference in Nashville, eagerly awaiting Republican presidential nominee Donald Trump’s address on his cryptocurrency and blockchain policies, should he secure reelection in November. On July 27, Trump made headlines by unveiling his plans for digital assets starting in 2025, urging attendees to “have a good time with your Bitcoin and your crypto and everything else that you’re playing with.”
Increasing Electricity Production
Trump proposed a significant increase in electricity production to support cryptocurrency mining in the U.S. He emphasized the need to double the nation’s current electricity output, leveraging fossil fuels and nuclear power, while aiming to cut through regulatory hurdles. However, he did not provide specific details on how he plans to incentivize this power generation, especially as many countries shift towards greener energy solutions.
During his previous term, Trump’s administration struggled to pass significant infrastructure bills due to disagreements over renewable energy investments and funding methods. The outcome of the 2024 election, along with which party controls Congress, remains uncertain. Congressional support would be crucial for any substantial changes in electricity production.
Mawson Infrastructure Group CEO Rahul Mewawalla suggested that political support for expanding the U.S. electric grid might be more viable if it favors innovative technologies like artificial intelligence and cryptocurrency. However, the political landscape during a potential second Trump term remains unpredictable.
U.S.-Based Bitcoin Mining
Trump reiterated his commitment to having all Bitcoin mined within the United States. This ambition was highlighted in a social media post in June, following meetings with crypto mining firm leaders. While the idea garnered support from some industry figures, others deemed it impractical. Shapeshift founder Erik Voorhees criticized the notion, arguing it demonstrated a lack of understanding of both Bitcoin and broader economic principles.
Data from the Cambridge Bitcoin Electricity Consumption Index indicated that the U.S. accounted for approximately 38% of global Bitcoin mining. Achieving exclusive U.S.-based Bitcoin mining would be a herculean task, regardless of presidential influence.
SEC Chair Dismissal
Trump vowed to remove SEC Chair Gary Gensler on his first day in office. Historically, U.S. presidents rarely “fire” heads of regulatory bodies like the SEC or the Commodity Futures Trading Commission. Typically, a change in administration, particularly across party lines, prompts chairs to step down voluntarily. Gensler’s term ends in June 2026, and dismissing him would require a cause, such as inefficiency, neglect of duty, or malfeasance.
Reed Smith partner Jon Ammons noted that while SEC guidelines do not explicitly outline reasons for dismissing a chairperson, historical court cases suggest these criteria could be invoked. However, the necessity of firing Gensler may be moot, as SEC chairs often resign amid political shifts.
Sweeping Policy Changes
Trump outlined several sweeping policy changes, including shutting down Operation Chokepoint 2.0, establishing a Bitcoin and crypto presidential advisory council, and halting any central bank digital currency (CBDC) development at the Treasury Department. While presidents can influence legislation and issue executive orders, significant regulatory changes typically require congressional cooperation.
During his first term from 2017 to 2021, Trump did not prioritize these policies. North Carolina Representative Wiley Nickel expressed skepticism about Trump’s newfound interest in crypto, noting that substantial policy changes would need congressional support.
Commuting Ross Ulbricht’s Sentence
Trump reaffirmed his pledge to commute Ross Ulbricht’s sentence. Ulbricht, the creator of the Silk Road marketplace, is serving two life sentences without parole for seven felony charges related to the platform, which facilitated illegal transactions.
U.S. presidents possess the authority to pardon or commute sentences for federal crimes. During his first term, Trump issued 237 acts of clemency but did not commute Ulbricht’s sentence. Reports suggested that Ulbricht’s case was considered after Trump’s 2020 election loss, but he ultimately did not grant clemency.
A commutation would release Ulbricht from prison with time served, while a presidential pardon would restore certain civil rights, although his conviction would remain on record.
Conclusion
Trump’s promises to the crypto community, while ambitious, face significant hurdles. Increasing electricity production, centralizing Bitcoin mining in the U.S., and enacting sweeping regulatory changes all require considerable political maneuvering and support. Whether Trump can fulfill these promises remains uncertain, but his intentions have undoubtedly captured the crypto world’s attention. As the 2024 election approaches, the intersection of politics and cryptocurrency will continue to be a pivotal issue.
