Former US President Donald Trump speaks at the Bitcoin 2024 conference in Nashville, Tennessee, US, … [+]
(Full disclosure: I’m helping build Coinbits.app, a bitcoin banking platform.)
At the Bitcoin Conference in Nashville, former President Trump laid out a set of principles that guide his thinking about digital assets, and a set of promises to voters.
As for the principles, it’s clear that whomever is advising him on bitcoin policy is knowledgeable about both the technology and the culture surrounding digital assets.
One such principle is “Never sell your bitcoin.” (The same point was made one day earlier in a must-watch speech by Microstrategy CEO Michael Saylor.) Because the supply of bitcoin is fixed, the purchasing power of any fraction of a bitcoin rises as adoption increases and the economy grows. Trading bitcoin, the hardest money ever created, for assets or currencies that are “softer,” is always a bad trade in the long run.
Next, Trump stated that the dollar is threatened not by bitcoin, but by politicians in Washington, D.C. who have shown themselves to be poor stewards of the world reserve currency.
Here are five concrete promises that former President Trump made in his keynote address:
1. Gary Gensler will be fired on day one of a Trump presidency.
Over the past three years, through some combination of incompetence and hostility, Mr. Gensler has used his power over the Securities and Exchange Commission to confuse investors, stymie innovation, and attack good-faith actors.
The eruption of cheers from the crowd when President Trump said he would fire Mr. Gensler speaks to the anger felt by the entire bitcoin industry about his poor leadership.
2. Operation Choke Point 2.0 will be brought to an end.
Operation Choke Point 2.0 refers to a coordinated campaign among the Biden White House, the Federal Reserve, the OCC, the FDIC, and the DOJ to deny access to traditional financial services.
Over the past few years, bitcoin companies have found it increasingly difficult to open bank accounts, process credit cards, and obtain licenses. This misguided effort to demonize an entire industry hamstrung American competitiveness, driving software developers, industrial miners, and bitcoin financial service companies overseas.
With this episode finally behind us, we will see bitcoin flourish in the U.S., and will eventually benefit from downstream effects such as increased financial privacy and the development of energy resources.
3. A bitcoin advisory council to the President will be established.
As was clear during today’s keynote, President Trump still has much to learn about bitcoin. He was refreshingly deferential on this point – rather than pretending to know more than he did, he deferred to the expertise of the audience and pledged to include those with a stake in the industry in the regulatory process.
Digital assets will play an increasingly important role in the U.S. economy, touching everything from energy production to monetary policy to power projection. A chief executive would certainly benefit from a council of advisors who can help think through these complex issues.
4. Ross Ulbricht will be pardoned.
It has been eleven years since Ross Ulbricht was arrested for operating Silk Road, a website where drugs, fraudulent documents, and other illegal items (alongside legal ones) were freely bought and sold using bitcoin. Ulbricht received a double life sentence plus 40 years, which many feel was excessive. A commutation or pardon as long been a cause célèbre for liberty activists. President Trump reaffirmed his intention to pardon Ulbricht, recognizing that the time he has already served is enough to ensure justice was done.
Whether President Trump carries out these promises if he is elected remains to be seen. However, making them was a savvy political move that will pick up additional support from independent and undecided voters who see only one viable candidate that recognizes the significance of bitcoin.