30s Summary

Ex-President Donald Trump, who is leading the recent US presidential election over Vice President Kamala Harris, has made numerous promises to the crypto community. He has pledged to dismiss SEC Chair Gary Gensler, promote domestic Bitcoin mining, create a Bitcoin reserve, prevent the creation of a government digital currency, and lessen the sentence of crypto enthusiast Ross Ulbright. Although these promises have sparked optimism within the crypto-community, some remain skeptical about the feasibility and fulfillment of Trump’s plans.

Full Article

Looks like ex-President Donald Trump is winning the Nov. 5 US presidential election. Trump, from the Republican party, is soon to get the necessary votes to bag victory.

His main challenger, Vice President Kamala Harris, is being left behind in important swing states like Pennsylvania, Wisconsin, and Michigan.

While campaigning, Trump made many promises to the crypto community. He vowed to fire the Securities and Exchange Commission Chair, Gary Gensler, promote Bitcoin mining in the US, create a strategic Bitcoin reserve, stop a government run digital currency from being made, and lessen the sentence of crypto supporter Ross Ulbright, etc.

Many in the crypto world are excited for this new presidency because of these promises, while others are warning everyone not to get their hopes too high.

We’ll just have to wait and see how much of Trump’s plans really happen.

Trump plans to sack Gensler from the SEC on his first day in office. Gensler was appointed by President Joe Biden in 2021. During his time, the SEC has sued a lot of big crypto exchanges and projects.

The SEC sued Coinbase, the largest exchange in North America, along with others like Uniswap, Lbry, Immutable, and Consensys, etc. They claim that cryptocurrencies often legally securities and their developers must register the coins with the SEC.

Many crypto companies and users have disagreed with this interpretation of securities law, and Trump has promised to get rid of Gensler because of it.

Gensler’s term ends in April 2025. Trump could replace Gensler with someone who is more friendly to the crypto industry. He could also remove Gensler “for cause” on day one, but whether Gensler’s actions can be considered “cause” is likely to be debated.

Another scenario is that Gensler resigns, saving Trump from having to fire him.

Trump has also promised to lessen the sentence of former darknet marketplace operator Ulbricht on day one, possibly setting him free.

Ulbricht founded Silk Road, a website that allowed any user to sell whatever they wanted for Bitcoin, even illegal products. The Silk Road handled around $230 million worth of sales in its lifespan. Ulbright was arrested in 2013 and is now serving two life sentences plus 40 years, with no parole opportunity. Supporters think his sentence is too harsh for a web designer who only made it easier to trade drugs and did nothing violent.

Trump could turn his sentence to time served, thus immediately setting him free, or simply reduce his sentence.

Trump promises to support Bitcoin mining in the US, saying he wants all the remaining Bitcoin to be MINED IN THE USA. Though he hasn’t given details on how this goal will be achieved, some people in crypto are optimistic about his win because of this pro-mining stance.

Trump also vows to create a “strategic Bitcoin reserve” by getting law enforcement to not sell the Bitcoin they’ve seized from criminal enterprises. Supporters of this policy think Bitcoin is an important reserve asset and that keeping it will eventually help pay off the US national debt.

Trump also pledges to prevent a government run digital currency from being made. The crypto community is divided on whether such a currency is good, but at least some crypto users view this as a positive move.

Despite Trump’s many promises to the crypto industry, some are skeptical about whether these promises will be fulfilled or if they’re even possible.

For example, in response to Trump’s claim that he wanted all the remaining Bitcoin to be made in the US, Shapeshift founder Eric Vorhees stated that this view was “absurd nationalist/protectionist nonsense, betraying both a lack of understanding of Bitcoin, and a lack of understanding of economics broadly.”

Furthermore, Casa wallet founder Jameson Lopp criticized Trump’s plan for a strategic Bitcoin reserve, saying that half of the Bitcoin seized by law enforcement actually belongs to the Bitfinex exchange and needs to be returned to it.