Trump proposes to create a national strategic cryptocurrency reserve: never sell Bitcoin

According to CNBC, former United States President Donald · Trump said that if he returns to the White House, he will ensure that the federal government will never sell its Bitcoin holdings. But he did not propose the creation of a formal federal reserve for digital currency.

In his keynote address at the Bitcoin Conference in Nashville, the biggest Bitcoin conference of the year, Trump said: "For too long, our government has violated a basic rule that every Bitcoin user knows by heart: never sell your Bitcoin.

The former president's remarks come as the race for votes and campaign funding for frontline fintech adopters in the United States has become the focus of the 2024 presidential election.

Trump said: I laid out my plan this afternoon to make sure that United States becomes the cryptocurrency capital of the world and the world's Bitcoin superpower, and we will complete it.

But Trump's promise to maintain only the United States government's current Bitcoin holdings is a less aggressive propaganda for the crypto crowd relative to other proposals at the meeting.

For example, third-party candidate Robert ·F. Kennedy Jr. In a Bitcoin Conference speech on Friday, a 4 million bitcoin reserve was promised to be launched, starting with bitcoins stored by the United States government from criminal seizures. Kennedy said he would ask the government to buy 550 bitcoins a day until the reserves reached 4 million.

Shortly after Trump's speech, Senator Cynthia ·, Republican of Wyoming, read out her own legislative proposal to accumulate 1 million bitcoins of the official United States federal reserve over five years.

"This money will be held for at least 20 years for one purpose: to reduce our debt." Loomis said.

Bitcoin prices fell at one point during Trump's speech, but as of 5:15 p.m. ET United States, Bitcoin prices have recovered and risen slightly

Throughout his speech, the former president struggled to contrast the Republican Party's growing acceptance of cryptocurrencies with the Biden administration's heavy-handed regulatory approach.

Trump said: The Biden-Harris administration's suppression of cryptocurrencies and bitcoin is wrong, and it is very bad for our country. I'm telling you, if they win this election, each of you will disappear. They will be vicious. They will be ruthless. They will do things you can't believe.

Trump went on to enumerate a series of crypto-friendly promises to a cheering crowd of Bitcoin supporters that would dismantle the anti-crypto campaign of so-called President Joe · Biden and Vice President Kamala · Harris.

Trump said: "On the first day, I will fire Gary · Gensler."

He was referring to Biden's appointment of the chairman of the United States Securities and Exchange Commission, who has taken a positive approach to cryptocurrency regulation.

The President does not have the power to dismiss appointed commissioners. Even if Trump appoints a new SEC chairman, Gensler will still serve as a commissioner for that independent body.

The former president also promised to create a presidential advisory council on bitcoin and cryptocurrency.

Trump said: The rules will be made by people who love your industry, not people who hate your industry.

Republican presidential candidates also held a fundraiser in Nashville, with tickets selling for up to $844,600. In June, David Bailey, CEO of BTC Inc., which organized the meeting, pledged to raise $100 million and draw more than 5,000,000 voters for Trump's re-election campaign, as the Bitcoin industry increasingly turned to the Trump camp for support.

Trump took the main stage to address the Bitcoin community directly, the latest in his months-long call to crypto supporters, which included accepting virtual token donations, pledging to end President Biden's crypto wars, and advocating for a future where all Bitcoin is made in the United States. It was also a radical shift for the Republican presidential candidates.

Trump has publicly rejected Bitcoin

In July 2019, he said he didn't like Bitcoin and other cryptocurrencies. He said tokens are not money, their value comes out of thin air, and warned that unregulated crypto assets could help facilitate the drug trade and other illegal activities.

"Bitcoin looks like a scam." He said in a 2021 phone interview with Fox. "I don't like it because it's another currency that competes with the dollar."

Trump continued in his conversation with Fox: I want the dollar to be the world's currency, that's what I've always said.

But five years later, after a losing presidential election and millions of dollars poured into the cryptocurrency lobby, Republican presidential candidates lavished praise on the digital currency at the largest Bitcoin conference of the year, which opened Thursday in Nashville.

In his keynote speech, Trump said: Bitcoin represents freedom, sovereignty, and independence from government coercion and control.

The shift in Trump's attitude toward Bitcoin comes as Republicans pledge to remove the red tape of the Biden-Harris administration in an effort to turn crypto regulation into a voting issue in November, especially as inflation remains top of voter concerns in polls.

As crypto lobbyists and supporters gain more influence in Washington, questions are beginning to be asked whether the Democrats will delve into the tough regulatory approach of the past few years or relax their stance.

Representative Willy · Nikole, Democrat of North Carolina, said in an interview with CNBC: Every presidential candidate needs to understand that voters who support digital asset innovation will always support it.

He added that cryptocurrency regulation should not become partisan political football.

"I want this to be a bipartisan concern. I don't want Donald · Trump to politicize this issue." Rep. Nikkor said.

Rep·. Ro Khanna, Democrat of California, echoed Rep. Nickle, saying that cryptocurrencies should not be the focus of partisan contention, but should be regulated like any technology.

"I really don't understand what kind of partisanship there is. Opposition to Bitcoin is the same opposition to mobile phones, opposition to artificial intelligence, opposition to laptops." Khanna told CNBC. "It's a technology. There needs to be thoughtful regulation of this technology, but it's a technology that has appreciated from $10,000 to $80,000."

Rep. Khanna and Nickel were the only two Democrats to attend the Bitcoin meeting.

Bitcoin 2024 conference organizers said they briefly negotiated inviting Vice President Kamala · Harris to attend, but she ultimately declined. But billionaire businessman Mark · Cuban posted on X that the Harris campaign had contacted her about cryptocurrency, so it appears that the vice president is studying the area and may be figuring out how her policies will be implemented if she is elected president.

"I think we'll hear about that soon, Vice President Harris. I'm very optimistic that we're going to start again. I think it's going to have a big impact." Rep. Nikkor said. "There will be no progress on this issue. We must ensure that this continues to be embraced in a bipartisan manner."

United Kingdom Harris' team has begun reaching out to people familiar with the crypto company to arrange a meeting, the Financial Times reported on Saturday.

Trump's change of attitude towards Bitcoin

Trump's recent upturn in sentiment toward the digital asset space coincides with a sudden influx of interest and money from the country's top tech talent.

He has raised more than $4 million through multiple cryptocurrencies, including Bitcoin, Ether, USDC, the dollar-pegged stablecoin USDC, and various memecoins, with contributors from 12 states, including several battleground states.

According to documents filed with the Federal Election Commission, crypto billionaire twins and venture capitalists Taylor and Cameron · Vin Klevos took the lead, donating 15.57 bitcoin each, or just over $1 million at the time of the donation — although they received a partial refund because the donation exceeded the $844,600 limit.

There are many other venture capitalists who also support cryptocurrency, and they have also pledged millions of dollars to donate to the Trump campaign.

Venture capitalists Marc Andreessen and Ben Horowitz told Andreessen Horowitz (a16z) employees that they plan to make a significant donation to the political action committee that supports Trump's campaign.

Sequoia Capital's partners supported Trump, as did venture capitalist David Sacks, who helped the former president raise $12 million at a fundraiser hosted at his San Francisco home. The chief legal officer of centralized cryptocurrency exchange Coinbase and blockchain giant Ripple were in attendance.

These tech-elite members have also contributed immensely to pro-crypto mega-PACs like Fairshake, which have raised more than $200 million to elect pro-crypto candidates.

But NBC News reports found that the vice president's team is looking to win over some of the big tech companies' undecided donors, many of whom remain on the sidelines while President Joe · Biden runs. Now that the vice president is the party's de facto candidate, their attitude may change.

Harris has a wealth of experience in California, which has been very helpful to him.

She has been raising money in the tech world for years, including from employees at Amazon, Google, Microsoft, and Apple.

"The transformation that has taken place in the last three days has been dramatic." Steve Westly, a venture capitalist and former candidate for governor of California, told NBC News ·. "I don't think I've ever seen such a surge of enthusiasm in any campaign I've been involved in."

Trump's vice presidential running mate, J.D. Vance, will hold his own fundraiser in Palo Alto on Monday.