- Donald Trump advocates for all Bitcoin mining to be centralized in the U.S. to enhance energy dominance.
- Trump opposes the creation of a Central Bank Digital Currency, viewing it as a threat to personal freedom.
Donald Trump, a key figure in the upcoming 2024 presidential elections scheduled for November 5, has recently intensified his support for cryptocurrency, specifically advocating for the future of Bitcoin mining to be centralized in the United States. His statements position this stance as a new point of contention against the administration of President Joe Biden.
Trump’s Call for US-based Bitcoin Mining
Trump expressed a strong desire for all remaining Bitcoin to be mined within the US, linking this to energy dominance. He articulated these views on his social media platform, Truth Social, where he portrayed this move as beneficial for the country’s strategic interests. “We want all the remaining Bitcoins to be made in the U.S.! It will help us be Energy Dominant!” Trump declared.
Opposition to Central Bank Digital Currency
Furthermore, Trump reiterated his opposition to the development of a Central Bank Digital Currency (CBDC), which he views as a threat to freedom. He criticized the current Democratic party’s openness to this digital innovation, potentially spearheaded by the Federal Reserve, labeling it a “dangerous threat to freedom.” He vows to block its implementation if he returns to office, suggesting that the proliferation of Bitcoin mining could be a countermeasure to the introduction of a CBDC.
Political and Industry Reactions
At a recent gathering at Mar-a-Lago, which included leaders from prominent Bitcoin mining companies such as CleanSpark Inc. and Riot Platforms, Trump reiterated his support for the cryptocurrency sector. Matthew Schultz, president of CleanSpark, highlighted Trump’s commitment to defending Bitcoin miners, suggesting they could play a role in stabilizing the national power grid.
This endorsement coincides with significant financial backing from industry leaders, demonstrated at a recent fundraising event in Silicon Valley, which raised about $12 million. Notable attendees included Gemini founders Cameron and Tyler Winklevoss, among others.
Contrasting Biden’s Administration
Trump’s pro-cryptocurrency stance starkly contrasts with the Biden administration’s more cautious or even adverse approach to the industry. President Biden has proposed a 30% tax on the energy costs of Bitcoin miners in his 2025 budget plan as a measure to mitigate the environmental impact of energy-intensive mining operations.
Market and Regulatory Impacts
The cryptocurrency industry in the US has faced a challenging climate under current regulatory scrutiny, including actions by the SEC and warnings from the FBI about platforms lacking proper Know Your Customer (KYC) measures. Several companies have signaled their intention to cease operations in the US due to this regulatory uncertainty.
As the election approaches, the impact of Trump’s support for cryptocurrencies remains to be seen, especially against the backdrop of ongoing debates over regulation, energy consumption, and the association of cryptocurrencies with illicit activities and sanction evasion.
