{"id":20512,"date":"2025-01-21T20:27:05","date_gmt":"2025-01-21T18:27:05","guid":{"rendered":"https:\/\/forklog.com\/en\/donald-trump-eccentric-populist-or-a-herald-of-cryptos-new-era\/"},"modified":"2025-01-21T20:27:05","modified_gmt":"2025-01-21T18:27:05","slug":"donald-trump-eccentric-populist-or-a-herald-of-cryptos-new-era","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/donald-trump-eccentric-populist-or-a-herald-of-cryptos-new-era\/","title":{"rendered":"Donald Trump: eccentric populist, or a herald of crypto\u2019s new era?"},"content":{"rendered":"

On January 20, Donald Trump was officially sworn in as the 47th president of the United States. During his election campaign he touted ambitious crypto initiatives and, on the eve of his inauguration, launched<\/a> one of the most talked\u2011about memecoins.<\/p>\n

ForkLog rounds up what matters about the ascent of the leader of the world\u2019s biggest economy, his entanglement with digital assets and the \u201cnew era\u201d for cryptocurrencies.<\/p>\n

Trump\u2019s campaign platform<\/h2>\n

Between his first and second terms, Trump went from a critic of digital assets to a self\u2011styled \u201ccrypto\u2011president\u201d<\/a>\u2014and the first head of state with his own memecoin.<\/p>\n

Experts reckon Trump is concerned with preserving the dollar\u2019s dominance in the global economy. He had seen cryptocurrencies as a threat to the status quo, which shaped his scepticism toward the asset class.<\/p>\n

His view \u201csoftened\u201d as the community\u2019s frustration with the Biden administration\u2019s approach to crypto regulation grew. By the start of the 2024 race Trump had become an open supporter of digital assets.<\/p>\n

\n

\u201cApparently, the politician recognised the economic potential of cryptocurrencies, the role of the United States in this industry, and its problems. There came an understanding that they will not threaten America\u2019s hegemony if the States can control the market and set the trends,\u201d noted at the time SHARD\u2019s head of analytics, Fedor Ivanov.<\/p>\n<\/blockquote>\n

His campaign then leaned into the crypto electorate and focused its messaging accordingly.<\/p>\n

\n

\u201cAlmost certainly, Donald Trump sought to attract potential voters who were positively disposed toward cryptocurrencies. He likely also aimed to win favour with Elon Musk\u2019s fans, who might have expected concrete statements and actions in their favour,\u201d BestChange analyst Nikita Zuborev told ForkLog.<\/p>\n<\/blockquote>\n

In the expert\u2019s view, the president\u2011elect remains personally sceptical about the industry\u2019s prospects. But his advisers have persuaded him of the asset class\u2019s advantages, including its potential to reduce the US national debt.<\/p>\n

\n

\u201cFor him it\u2019s just another \u2018toy\u2019, as it is for Elon Musk. But it can bring in millions of dollars, which Trump does not disdain. At the official level, though, his support for the crypto market is still too limited,\u201d the analyst added.\u00a0<\/p>\n<\/blockquote>\n

Even so, during the campaign Trump\u2019s team announced a series of crypto initiatives that piqued<\/a> the community\u2019s interest. Which of them will be implemented\u2014and with what impact\u2014remains an open question.\u00a0<\/p>\n

Blum CEO Gleb Kostarev<\/a> expects the shift to become palpable soon.<\/p>\n

\n

\u201cTrump moves fast, which is typical of his management style. If the rumours<\/a> about signed crypto orders are true, this could be a turning point for the industry. Still, impulsive decisions can yield both positive changes and unexpected risks,\u201d he stressed.<\/p>\n<\/blockquote>\n

Some promised changes are already under way.<\/p>\n

Personnel reshuffles<\/h3>\n

One of the campaign\u2019s industry\u2011relevant planks was a shake\u2011up at the top of key agencies.\u00a0<\/p>\n

The loudest pledge was to fire then\u2011chair of the SEC<\/span>, Gary Gensler, aired<\/a> from the stage at the Bitcoin 2024 conference in June 2024. Widely disliked in crypto circles for his critical stance and strict approach to oversight, Gensler\u2019s prospective ouster drew applause.\u00a0<\/p>\n

In November 2024 Gensler said he would step down on the 47th president\u2019s inauguration day\u2014a year before the end of a standard term.<\/p>\n

Among possible successors were mentioned<\/a> Robinhood\u2019s chief legal officer Dan Gallagher, former chair of the CFTC<\/span> Christopher Giancarlo, SEC commissioner Hester Peirce and the agency\u2019s former general counsel Robert Stebbins. Billionaire Mark Cuban<\/a> also expressed interest in the role.<\/p>\n

In December the president\u2011elect nominated<\/a> former SEC commissioner Paul Atkins\u2014a crypto supporter and a board member of the industry lobby group The Digital Chamber\u2014to chair the SEC. His nomination was well received across both the crypto community and political circles.<\/p>\n

Until Congress confirms Atkins, commissioner Mark Uyeda will serve<\/a> as acting chair.<\/p>\n

Change is coming to the futures watchdog, too: CFTC chair Rostin Behnam has announced<\/a> his resignation.\u00a0<\/p>\n

On his watch, the agency proved more accommodating than Gensler\u2019s SEC. It pursued several major cases against crypto firms, including FTX<\/a> and Binance.\u00a0<\/p>\n

Behnam has repeatedly called for tighter oversight of the industry, including decentralised exchanges and DeFi, and sought expanded authority over cryptocurrencies.<\/p>\n

In November 2024, reports surfaced of the Trump team\u2019s plans<\/a> to shift part of the digital\u2011assets market under the CFTC\u2019s remit.<\/p>\n

The leading contender to chair the CFTC is Brian Quintenz<\/a>\u2014a former commissioner and policy chief for a16z\u2019s crypto arm. He has described his stance on the industry as \u201cpositive\u201d and criticised the SEC\u2019s approach.<\/p>\n

Pending confirmation of a new chair, commissioner Caroline Pham\u2014a former Citibank executive\u2014will serve<\/a> as acting head of the CFTC.<\/p>\n

\n

\u201cAppointing new leaders like the heads of the SEC and CFTC is a chance for a reset. If professionals with a deeper understanding of crypto join the administration, it could speed up proper legal integration,\u201d Kostarev said.<\/p>\n<\/blockquote>\n

In November 2024 Trump nominated<\/a> hedge\u2011fund manager Scott Bessent as treasury secretary.\u00a0<\/p>\n

The president\u2011elect also floated allies and crypto sympathisers for other key posts. Robert Francis Kennedy Jr. was nominated to be head of the Department of Health<\/a>, political commentator and National Guard officer Pete Hegseth for minister of defense<\/a>, and Cantor Fitzgerald CEO Howard Lutnick was appointed<\/a> minister of commerce.<\/p>\n

Beyond changing the guard at existing agencies, the Trump team set up<\/a> a new one\u2014the Department of Government Efficiency (DOGE).\u00a0<\/p>\n

Devised by ally Elon Musk, the body will be co\u2011chaired by the billionaire himself and former presidential candidate Vivek Ramaswamy.\u00a0<\/p>\n

A bitcoin reserve<\/h3>\n

The idea of a national strategic bitcoin reserve was another marquee plank of Trump\u2019s crypto rhetoric.\u00a0<\/p>\n

He floated adding digital gold to the state balance sheet at Bitcoin 2024, alongside his vow to fire Gensler.\u00a0<\/p>\n

He also said he would not allow the sale of 213,239 BTC seized by the authorities and held in US government wallets, calling them the future \u201ccore of a national strategic reserve\u201d.\u00a0<\/p>\n

Soon after, word surfaced of a draft bill<\/a> by senator Cynthia Lummis, tentatively titled \u201cThe Stimulating Innovation, Technology, and Competitiveness Through Streamlined Nationwide Investments Act of 2024,\u201d or the \u201cBitcoin Act of 2024\u201d for short.\u00a0<\/p>\n

In November the proposal was submitted<\/a> to Congress.\u00a0<\/p>\n

The plan envisaged buying up to 200,000 BTC a year for five years to amass 1m coins, tapping Federal Reserve gold reserves. A 20\u2011year holding period was proposed, with some exceptions.<\/p>\n

In December 2024 Satoshi Action Fund CEO Dennis Porter said<\/a> Trump was considering an executive order establishing a strategic bitcoin reserve funded via the Exchange Stabilization Fund (ESF).\u00a0<\/p>\n

Before year\u2011end, several US states announced<\/a> their own strategic crypto\u2011accumulation initiatives.<\/p>\n

Binance founder Changpeng Zhao backed<\/a> the US reserve idea, saying the same was \u201cinevitable\u201d for many countries that had yet to show interest.<\/p>\n

Former US treasury secretary Lawrence Summers, by contrast, criticised<\/a> it. He called bitcoin a \u201cbarren commodity\u201d and suggested the only motivation for a strategic reserve might be \u201cindulging generous campaign donors\u201d to Trump.<\/p>\n

Trader Vladimir Koen<\/a> believes the notion is, for now, mere populist sloganeering.<\/p>\n

\n

\u201cIn the near term, a bitcoin reserve is nothing more than a slogan Trump needed to raise donations and draw in the crypto crowd,\u201d the expert stressed.\u00a0<\/p>\n<\/blockquote>\n

He argues the Lummis bill will not pass Congress, even if Trump signs such an order. Lawmakers\u2019 chief task is to restore the dollar\u2019s global dominance to prior levels.\u00a0<\/p>\n

\n

\u201cThe goal of the United States is to sell more of its dollar\u2011denominated bonds. Using bitcoin creates unnecessary competition for those bonds,\u201d Koen added.<\/p>\n<\/blockquote>\n

In his view, too many factors militate against a US national bitcoin reserve: volatility and its impact on sovereign\u2011bond ratings, an unfit legal framework, and technical risks tied to custody.<\/p>\n

As an alternative, Koen suggests issuing US Treasuries denominated in digital gold:<\/p>\n

\n

\u201cEven if they deliver minimal yield thanks to crypto\u2019s price appreciation, they will find buyers. That is, the authorities will denominate debt in bitcoin, pay no interest on it, and the Fed\u2019s balance sheet will grow on the back of rising quotes.\u201d\u00a0<\/p>\n<\/blockquote>\n

However, even that does not solve the control problem, the expert believes.\u00a0<\/p>\n

\n

\u201cThe lack of control over the coin runs counter to both Trump\u2019s character and US policy. They use the dollar as a lever over other countries, which is impossible with bitcoin. From this it follows that only a cryptocurrency fully controlled by the US government can make it into the state reserve for now,\u201d he emphasised.<\/p>\n<\/blockquote>\n

Opposition to a CBDC<\/h3>\n

On the trail Trump also pledged<\/a> he would not allow the Fed<\/span> to launch a national digital currency (CBDC).<\/p>\n

US officials had taken an interest in a digital dollar as early as 2020 amid a flurry of state and international CBDC initiatives.\u00a0<\/p>\n

In early 2022 the Federal Reserve presented a report on the features and prospects of a digital dollar. It said such an instrument could \u201cfundamentally change the US financial system,\u201d reshaping the roles of the central bank and the private sector.<\/p>\n

Staff suggested a digital analogue could help the US dollar retain its status as the world\u2019s leading currency. A CBDC might also improve cross\u2011border payments and financial inclusion.<\/p>\n

However, they warned it could spur deposit flight from banks and compromise the privacy of citizens\u2019 transactions. And the tool\u2019s \u201cextremely complex infrastructure\u201d compared with existing payment rails could attract criminals.<\/p>\n

The report did not conclude that a US CBDC should be launched.<\/p>\n

Some of Trump\u2019s allies also opposed a digital dollar, including cabinet nominees Bessent<\/a> and Kennedy Jr., as well as congressman Tom Emmer.<\/p>\n

Trump\u2019s team argues such an instrument could be used to surveil citizens\u2019 private financial activity and curtail their freedoms.\u00a0<\/p>\n

Libertarian economist Yevgeny Romanenko<\/a> shares that view.<\/p>\n

\n

\u201cCBDC is fiat 2.0, an attempt to make society\u2019s money even worse, finally emptying them of meaning,\u201d the expert said.<\/p>\n<\/blockquote>\n

He argues turning the dollar into a CBDC would give the authorities even more scope to intervene in the economy and private life. It would also swell government spending and the national debt.\u00a0<\/p>\n

\n

\u201cIdeally, the United States would proclaim a return to the gold standard, but I fear Trump lacks both the knowledge and the will,\u201d the economist added.<\/p>\n<\/blockquote>\n

Implications for the traditional economy<\/h2>\n

According to Romanenko, the $36trn national debt is America\u2019s paramount economic problem. Such obligations entail dollar devaluation and significant inflation.\u00a0<\/p>\n

\n

\u201cIn this sense the legacy handed to Trump resembles what Javier Milei in Argentina<\/a> inherited. But Milei\u2019s task is easier: Argentina\u2019s role in the world does not entail fighting wars across the planet, so cutting the bureaucratic parasite off from the economy will be easier,\u201d the expert argues.<\/p>\n<\/blockquote>\n

In his view, Trump is up against the system\u2019s \u201cinertia\u201d in the United States and beyond.\u00a0<\/p>\n

\n

\u201cTo stop debt growth, Trump needs to slash spending radically\u2014for example, by abandoning the role of world policeman and returning the US to isolationism, as 250 years ago,\u201d the economist said.\u00a0<\/p>\n<\/blockquote>\n

Yet he calls renouncing involvement in global conflicts \u201ca kind of betrayal of a civilising mission\u201d, warning it could spark a sharp rise in the number of armed conflicts worldwide.<\/p>\n

\n

\u201cRadical cuts to American spending are not in sight, and selective cuts do not fix the fundamentals,\u201d Romanenko stressed.<\/p>\n<\/blockquote>\n

He believes crypto could help find ways to tackle state spending and debts, but the task of rooting out \u201cparasitic\u201d bureaucracy lies with the Trump administration.<\/p>\n

The \u201cpresidential memecoins\u201d<\/h2>\n

On January 18 Trump launched his own memecoin, TRUMP, on Solana. Amid relative torpor elsewhere in crypto, the token jumped 220% on day one, with FDV hitting $62bn.<\/p>\n

Within 24 hours the frenzy around the memecoin helped push<\/a> SOL to an all\u2011time high of $270.\u00a0<\/p>\n

Major centralised exchanges including Binance, Bybit, HTX, Gate and Bitget announced listings for TRUMP.\u00a0<\/p>\n

The president\u2019s spouse, Melania Trump, followed suit. On January 19 she announced<\/a> the launch of her MELANIA memecoin.\u00a0<\/p>\n

The token\u2019s price topped out at $13.14 within three hours, and FDV exceeded $12bn on the first day. Liquidity shifting into MELANIA knocked down several other assets, including TRUMP, which fell from $61 to $38.9 amid the debut of the first family\u2019s second memecoin.<\/p>\n

Trader activity around the tokens on December 18 and 19 produced Solana\u2019s \u201ccraziest weekend\u201d. DEX volume on the network hit $27bn in a day, the chain\u2019s TVL<\/span> rose to $11bn, and aggregate fees on TRUMP\u2019s launch day reached $57m.<\/p>\n

By January 21, drawdowns from the peak in Official Trump (TRUMP) and Melania Meme (MELANIA) stood at 29.8% and 53.8%, respectively. Both slid as the community balked at Trump\u2019s inaugural address, in which he did not mention crypto once.<\/p>\n

The \u201cpresidential memecoins\u201d have proved contentious for both the industry and US politics.<\/p>\n

Some in the community saw potential for state and international corruption; others accused the president and his wife of excessive greed.<\/p>\n

TradeZella founder Umar Ashraf argued that launching and promoting such assets is unbefitting of someone in so high an office.<\/p>\n

CNBC and Yahoo Finance journalist Zack Guzman saw in TRUMP and MELANIA a potential violation of the US Constitution. He noted the coins were purposefully launched before the inauguration\u2014doing so as a sitting president could have constituted a crime.<\/p>\n

Exved CEO Sergey Mendeleev<\/a> believes the Securities and Exchange Commission should have taken an interest in the Trumps\u2019 projects.<\/p>\n

\n

\u201cI\u2019ll just remind you that only five years ago the SEC rather harshly twisted both Pavel Durov\u2019s and Mark Zuckerberg\u2019s tails for stunts of this kind, and Elon Musk was fined quite seriously\u2014he almost ended up in jail\u2014for shilling Dogecoin and similar things on Twitter,\u201d the expert noted.<\/p>\n<\/blockquote>\n

He also argues that TRUMP and MELANIA open wide avenues for market manipulation and fraud:<\/p>\n

\n

\u201cNow anyone engaging in similar things will ask: \u2018Why is Trump allowed to, but I\u2019m not?\u2019 What is the difference between issuing some shitcoin where people will steal a few million dollars, and Trump\u2019s coin where he made several billion? Why did Trump \u2018make money\u2019 while they \u2018stole\u2019? For me, for example, that difference is absolutely not obvious.\u201d<\/p>\n<\/blockquote>\n

It is unlikely to get worse\u00a0<\/h2>\n

Allbridge.io co\u2011founder Andriy Velykyy<\/a> says the state of the US crypto industry already resembles a worst\u2011plausible scenario.\u00a0<\/p>\n

He pointed to Europe\u2019s handling of AI\u2014where over\u2011regulation drove firms away\u2014and said Trump \u201cunderstands\u201d the consequences.\u00a0<\/p>\n

Velykyy sees the right ingredients in the US to foster friendlier conditions for crypto businesses, and expects the legislative climate and government attitude to improve.<\/p>\n

\n

\u201cWe may not get the \u2018Wild West\u2019 the market hopes for. But almost the entire Senate is friendly to cryptocurrencies, open accusations are being levelled at Gensler, and there is an understanding that if America stays out of crypto, everything will move to Asia,\u201d he said.<\/p>\n<\/blockquote>\n

He does not expect the president\u2011elect to flip his views on crypto overnight, but hopes his behaviour in office will be \u201cmore civilised\u201d than his campaign promises.<\/p>\n

\n

\u201cCrypto firms will be able to open and operate normally in the US. The market will respond positively, simply because Trump, as a businessman, is interested in capital flowing into the country,\u201d Velykyy stressed.<\/p>\n<\/blockquote>\n

In January, it emerged<\/a> that Trump plans to issue an order declaring cryptocurrency a \u201cnational priority\u201d.<\/p>\n","protected":false},"excerpt":{"rendered":"

On January 20, Donald Trump was officially sworn in as the 47th president of the United States. During his election campaign he touted ambitious crypto initiatives and, on the eve of his inauguration, launched one of the most talked\u2011about memecoins. ForkLog rounds up what matters about the ascent of the leader of the world\u2019s biggest […]<\/p>\n","protected":false},"author":1,"featured_media":20511,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[991,1150,36,26],"class_list":["post-20512","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-donald-trump","tag-news-plus","tag-regulation","tag-usa"],"aioseo_notices":[],"amp_enabled":true,"views":"40","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/20512","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=20512"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/20512\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/20511"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=20512"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=20512"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=20512"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}