At Bitcoin 2023, Trump shared his vision for cryptocurrency in the U.S., pledging to support industry growth. His speech signals potential policy shifts that could shape the future of digital assets.
In his speech, Trump pointed to his administration’s objective of making the U.S. the “crypto capital of the world.” He pointed to recent new laws that were very “friendly” to crypto, pointing to how crypto can boost the economy further, ensure a safe financial future, and make the U.S. dollar king.
“People like you will change banking and payments to be more private, more secure, and more prosperous for businesses and consumers alike.” Dollar-backed stablecoins will strengthen the value of the U.S. dollar for many more years to come.
Trump’s executive orders since taking office are designed to strengthen the crypto industry. These consist of creating a working group on digital assets led by the government and a national Bitcoin reserve. His administration made changes so that the government can keep Bitcoin instead of selling it when they take it from criminals.
Nonetheless, unanimous public opinion toward his support of cryptocurrency does not exist. Many institutional investors and business leaders welcome the policy changes as a sign of progress for mainstream adoption. At the same time, some who are part of a Bitcoin group are not so enthusiastic, fearing more oversight from the government.
The White House Crypto Summit initiated this month, shows these divides even more. The event had industry executives and policymakers focused on regulatory talks, especially about stablecoins. Scott Bessent reported that the U.S. dollar relies on stablecoins and crypto. Meanwhile, Bessent’s White House crypto adviser Bo Hines said that we could see stablecoin legislation in a matter of two months.
Despite Trump being crypto-friendly, the markets did not respond well. After the announcement of the national Bitcoin reserve, Bitcoin surged over $92,000 but eventually dropped instead. In the days that followed, Bitcoin dropped 7.3% in price. Some people were expecting that the government would buy Bitcoin, but they decided to keep what they seized, which confused them.
Lawmakers are discussing more ways the government could get involved in crypto. New laws could let the government keep Bitcoin in reserves, but only if it can afford them. Trump is urging Congress to create plain and clear regulations to promote institutional investment and innovation in the sector.
Trump has backed Bitcoin before— including as far back as 2019. At a previous event for Bitcoin, he told investors, “Never sell your Bitcoin,” and stated that the government would keep the digital assets. His latest comments at the Blockworks summit suggest that crypto will play an important part in his economic policies going forward.
While some view Trump’s interaction with Bitcoin as a sign of legitimacy, others are skeptical and fear increased government control over the cryptocurrency. As regulatory talks carry on, the industry’s future in the U.S. remains hotly contested.
