On Saturday July 27th, Trump addressed the largest annual cryptocurrency conference in Nashville not as a skeptic but as one of its most prominent advocates, marking a complete turnaround during his latest campaign for the White House.
Despite the recent challenges faced by the cryptocurrency sector and his prior doubts, Trump has fully embraced the industry’s potential and excitement. Trump has criticized the Biden administration’s regulatory measures, labeling them a “war on crypto,” without addressing the significant frauds that have damaged public trust in digital currencies. He has also promised to promote stablecoins and facilitate operations for cryptocurrency mining companies in the United States if elected president.
“Otherwise, other countries will dominate,” Trump remarked earlier this month in Wisconsin.
In response, the industry has welcomed Trump. Its leaders and investors have contributed millions to his campaign and associated political committees. They promote his candidacy to their extensive online followings and provided him with a platform on Saturday to directly address the 20,000 expected attendees at this year’s Bitcoin Conference. Afterall it is of no coincidence that Tesla boss, Elon Mask has openly endorsed Trump’s campaign and has advocated in favor of crypto currencies in the past including accepting payments in bitcoin for Tesla vehicles.
During the event, Trump made several policy commitments favorable to cryptocurrency, including his intent to dismiss Securities and Exchange Commission Chair Gary Gensler and establish a “strategic national bitcoin stockpile.” These pledges align with his campaign promise to support the industry’s growth in the US.
“If crypto is the future, I want it to be mined, minted, and manufactured in the USA,” Trump declared at the convention.
Political Engagement
Industry leaders and advocates have become increasingly politically active, funding super PACs that predominantly support Republicans over Democrats.
“It’s time for the crypto community to send a clear message to Washington,” Tyler Winklevoss wrote in a detailed social media post endorsing Trump. “Attacking us is political suicide.”
The cryptocurrency sector has seen a revival since the collapse of FTX. After a significant decline in 2022, the price of bitcoin has recovered, reaching a record high in June.
It is our firm belief that Trump’s welcoming policy on crypto-assets will systemically affect the decision makers within EU and specifically the guidelines conveyed to EU national central banks by the ECB as FATCA reporting is predominant within EU traditional banking but also with reference to PSPs, EMIs and CASPs for effectuating cross-border payments. Should Trump get elected president on November 5th, crypto enthusiasts may expect a further surge on the Bitcoin price while Service Providers will be able to attract more crypto clients due to the introduction of a new favorable regulatory framework in the USA. It is our opinion that such pro-crypto reform in the States shall have a positive impact on the general growth of the crypto industry as it will directly affect the EU domestique banking sector including but not limited to clearer taxation parameters, on point guidelines for international payments and other compliance obligations as set out in the MiCA upcoming regulation.
Disclaimer: This article is for informative purposes only. It does not constitute a legal advice nor can it be depicted for any professional use. For more information please contact its author, Mr. Paris Hadjhipanayis.at paris@pahalaw.com
