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Crypto Stocks Broadly Higher After Trump's Pro-Bitcoin Speech

Published 07/29/2024, 08:29 AM
© Reuters
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Investing.com -- Crypto stocks jumped on Monday in response to former President Donald Trump's pro-Bitcoin stance, with Coinbase (NASDAQ:COIN), Bitfarms (NASDAQ:BITF), Riot Platforms (NASDAQ:RIOT), and CleanSpark (NASDAQ:CLSK) all moving higher.

In an address to the Bitcoin community on Sunday, Trump laid out an ambitious vision for the future of cryptocurrency in the United States.His speech emphasized the transformative potential of Bitcoin and other digital assets, likening the current moment to the early days of the steel industry.

Recognizing Bitcoin's Milestones

Trump began by acknowledging the extraordinary growth and impact of Bitcoin. "In just 15 years, Bitcoin has gone from merely an idea posted anonymously on an internet message board to being the ninth most valuable asset anywhere in the world. Can you believe that?" he said. This recognition of Bitcoin's rapid ascent set the tone for his optimistic vision of the future.

America's Role in the Crypto Revolution

Central to Trump's message was the imperative for America to lead in the cryptocurrency space. He said, "If bitcoin is going to the moon, as we say, it's going to the moon, I want America to be the nation that leads the way." 

He warned, "If we don't embrace crypto and Bitcoin technology, China will, other countries will, they'll dominate, and we cannot let China dominate." His call to action underscored the need for the United States to remain at the forefront of technological innovation, particularly in the realm of digital currencies.

A Commitment to Supportive Policies

Trump's speech was filled with promises of a crypto-friendly administration. He pledged to end what he described as the current administration's war on crypto, stating, "The day I take the oath of office, Joe Biden, Kamala Harris's anti-crypto crusade will be over." 

He further committed to establishing a Bitcoin and crypto Presidential Advisory Council to create clear regulatory guidelines within 100 days, ensuring the rules would be written by those who understand and support the industry. 

Additionally, he promised, "I will fire Gary Gensler. I will appoint a new SEC chairman who believes America should build the future, not block the future."

Energy and Infrastructure for Bitcoin Mining

Recognizing the energy demands of Bitcoin mining, Trump assured the audience of his commitment to meeting those needs. "You need tremendous amounts of electricity... and we'll get that done," he said, promising the construction of new power plants and the use of diverse energy sources to support the industry's growth. 

This commitment to infrastructure was a key element of his vision for making the U.S. a Bitcoin mining powerhouse.

Opposition to Central Bank Digital Currency (CBDC)

Trump made a firm stand against the creation of a central bank digital currency, a move that aligned him with many in the crypto community who value decentralized digital assets. "There will never be a CBDC while I'm president of the United States," he said, providing reassurance to those concerned about government overreach and centralization.

Regulatory Clarity and Industry Support

Promising a regulatory environment that supports innovation, Trump outlined plans for clear and fair guidelines. "We will create a framework to enable the safe, responsible expansion of stablecoins," he said, aiming to extend the dominance of the U.S. dollar through new financial technologies. 

His commitment to regulatory clarity was a welcome message to an industry often plagued by uncertainty. He also emphasized, "I will cut unnecessary and burdensome regulations. Fight every day to make America the best place on earth to build a business, including a crypto business."

Long-Term Commitment to Bitcoin

In a significant pledge, Trump promised that if elected, his administration would retain all the Bitcoin currently held by the U.S. government. "It will be the policy of my administration, United States of America, to keep 100% of all the bitcoin the U.S. government currently holds or acquires into the future," he said. This promise signaled a long-term commitment to the asset and its potential to benefit the nation.



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