Donald Trump’s Inauguration: Will He Fulfill His Pro-Crypto Promises?

Today marks Donald Trump’s inauguration as the 47th President of the United States. After months on the campaign trail, backed by $200 million in donations from the crypto industry, Trump has set high expectations with his eight bold promises to transform America into a crypto haven.

The crypto community has already celebrated Trump’s win, with Bitcoin surging to an all-time high of $109,000 in anticipation of his presidency. However, analysts are skeptical about whether Trump can—or will—keep these promises.

Here’s a closer look at Trump’s crypto commitments and the challenges he faces in fulfilling them.

1. Pardon Ross Ulbricht: Crypto’s Most Divisive Figure

Trump has vowed to pardon Ross Ulbricht, the creator of the darknet marketplace Silk Road, who is serving a life sentence for enabling illegal drug sales through Bitcoin.

Why It Matters:

For many in the crypto world, Ulbricht is a pioneer whose sentence symbolizes governmental overreach into decentralized technology. Pardon advocates argue that Ulbricht deserves clemency, while critics label him a criminal responsible for facilitating harmful activities.

Challenges:

• Public Backlash: Granting clemency to Ulbricht could alienate mainstream voters who see Silk Road as a dark chapter in Bitcoin’s history.
• Political Divide: Balancing crypto libertarians’ support with the broader electorate’s concerns could make this a tricky move.

Current Odds:

Crypto gambling site Polymarket places an 84% chance that Trump will pardon Ulbricht within his first 100 days.

2. Fire Gary Gensler and Reform the SEC

Crypto enthusiasts cheered when Trump promised to fire SEC Chair Gary Gensler, who spearheaded a regulatory crackdown on crypto firms like Ripple, Coinbase, and Kraken.

Current Status:

Gensler preemptively resigned, making way for Trump to appoint a crypto-friendly SEC chair, potentially setting the stage for clearer regulations.

What’s Next?

• Trump’s next move will involve appointing a leader who can foster collaboration with the crypto industry rather than stifle innovation.
• This change could pave the way for regulatory clarity around tokens and exchanges, reducing legal risks for crypto businesses.

3. Create a Bitcoin National Reserve

One of Trump’s most ambitious promises is to establish a strategic Bitcoin reserve, akin to a digital Fort Knox. Republican Senator Cynthia Lummis has championed a similar proposal, envisioning the U.S. holding 200,000 BTC as part of its treasury reserves.

Potential Benefits:

• Economic Independence: A Bitcoin reserve could reduce reliance on fiat currencies, particularly as inflation devalues traditional assets.
• Market Impact: Such a move could further legitimize Bitcoin, driving prices higher and accelerating adoption.

Challenges:

• Volatility Risks: Bitcoin’s price fluctuations could introduce instability into the U.S. reserves.
• Legislative Approval: Building a reserve will require bipartisan support, which may not be easy to secure.

4. Cut Interest Rates to Boost Bitcoin

Trump has repeatedly promised to lower interest rates, a move that could make riskier assets like Bitcoin more attractive to investors.

Why This Matters:

Bitcoin’s price often reacts positively to lower interest rates, as cheap borrowing encourages speculation in alternative assets.

Reality Check:

While Trump has influence, the Federal Reserve operates independently, and forcing interest rate cuts could face pushback from monetary policymakers.

5. Shut Down “Operation Chokepoint 2.0”

Trump has vowed to dismantle Operation Chokepoint 2.0, an alleged effort by the Biden administration to cut off crypto firms from banking services.

Proposed Actions:

• Establish a Bitcoin and Crypto Presidential Advisory Council to write clear, pro-crypto regulatory guidance within 100 days.
• Work directly with banks to encourage fair access to financial services for crypto businesses.

Hurdles:

• Critics argue that dismantling such policies may invite bad actors into the space, further complicating enforcement against scams and fraud.

6. Crypto-Friendly Regulatory Frameworks

Trump has promised to create a regulatory environment that works for the crypto industry, not against it. This includes:

• Tax Cuts: Reducing taxes on crypto gains.
• ETFs Beyond Bitcoin and Ethereum: Expanding ETF options to include assets like XRP, Solana, and Hedera.

Key Opportunity:

The crypto industry has long called for clearer rules, arguing that regulatory uncertainty stifles innovation and deters institutional investment.

Skepticism:

While Trump’s rhetoric has thrilled the crypto community, legal experts doubt his sincerity, suggesting that his pro-crypto stance may waver if it conflicts with broader political priorities.

7. Build a Strategic Crypto Hub in the U.S.

Trump has pledged to transform the U.S. into a global crypto hub, competing with Europe and Asia’s regulatory frameworks.

Proposed Initiatives:

• Encourage blockchain innovation by funding research and development.
• Provide tax incentives for crypto startups and mining operations.
• Attract foreign investment by fostering a friendly regulatory environment.

Global Perspective:

With countries like El Salvador embracing Bitcoin and Singapore establishing itself as a crypto-friendly hub, Trump has significant competition in making the U.S. a leader in blockchain innovation.

8. Address Inflation Through Crypto Adoption

Trump has hinted at leveraging cryptocurrencies like Bitcoin as an inflation hedge to counteract the devaluation of the U.S. dollar.

Feasibility:

• Encouraging Bitcoin adoption could reduce dependence on traditional fiat systems, but implementing this on a national scale would face resistance from traditional financial institutions.

Long-Term Implications:

If successful, this move could position the U.S. as a leader in the global crypto economy, setting a precedent for other nations.

What Happens if Trump Fails to Deliver?

While Trump’s presidency has ignited optimism, failure to deliver on his pro-crypto promises could have dire consequences:

• Market Correction: Bitcoin could fall to $80,000, erasing recent gains driven by campaign hype.
• Erosion of Trust: The crypto community may lose faith in Trump’s ability to follow through, dampening investor confidence.

Conclusion: Can Trump Deliver?

Donald Trump’s inauguration marks the beginning of a pivotal era for cryptocurrency in the U.S. His ambitious promises have created unprecedented optimism, but delivering on these commitments will require navigating political, economic, and regulatory hurdles.

As the world watches, the crypto community will be eagerly awaiting signs that Trump can transform rhetoric into reality—and usher in the “golden age of crypto” he promised.

Will Trump’s presidency elevate the U.S. to the forefront of the crypto revolution, or will his promises fizzle out in the face of political and economic realities? Only time will tell.