A quick history of Trump’s statements and policies on crypto Donald Trump’s stance on cryptocurrenc
A quick history of Trump’s statements and policies on crypto
Donald Trump’s stance on cryptocurrency has shifted significantly over time. From 2019 to 2021, Trump expressed skepticism toward Bitcoin (BTC), calling it volatile and a threat to the US dollar, but by 2024, he reversed his stance, pledging support for crypto, proposing a US Strategic Bitcoin Reserve and criticizing the Biden administration’s anti-crypto policies.
Early skepticism (2019–2021)
- July 2019: While in office, Trump tweeted that he was “not a fan” of Bitcoin, calling it “not money” and criticizing its volatility. He also opposed Facebook’s Libra (Diem) project, arguing that tech companies shouldn’t issue currency without a banking charter.
- June 2021: After leaving office, Trump labeled Bitcoin a “scam” and a threat to the US dollar, advocating for strict regulation to prevent it from undermining the US financial system.
Crypto policy during his presidency (2017–2020)
Trump’s administration generally took a cautious stance on crypto:
- Treasury Secretary Steven Mnuchin warned of Bitcoin’s risks and dismissed its long-term viability.
- The Treasury Department proposed stricter tracking rules for digital wallets, which faced industry backlash.
- Some Trump appointees supported crypto-friendly banking policies, but these were exceptions to an overall skeptical approach.
Pro-crypto pivot in 2024
Ahead of the 2024 election, Trump reversed course, pledging to end the Biden administration’s “anti-crypto” stance. He:
- Declared himself “very positive and open-minded” on Bitcoin.
- Promised to fire top crypto-skeptic regulators if reelected.
- Proposed a US Strategic Bitcoin Reserve, vowing to hold on to seized Bitcoin instead of auctioning it off.
This dramatic shift set the foundation for Trump’s strategic Bitcoin reserve.
The Strategic Bitcoin Reserve: What does it mean?
One of Trump’s headline proposals is creating a Strategic Bitcoin Reserve for the US, treating Bitcoin as a national reserve asset akin to digital gold. The plan centers on stockpiling Bitcoin seized in criminal cases rather than purchasing it with taxpayer funds.
Key components
- Bitcoin as a reserve asset: The US government would officially recognize Bitcoin as a strategic holding, similar to gold in Fort Knox, leveraging its fixed supply and decentralized nature.
- Seized crypto, not taxpayer purchases: Instead of selling confiscated Bitcoin at auction (as has been past practice), the government would retain it in a central reserve account. Trump’s executive order explicitly states that any Bitcoin deposited “shall not be sold.”
- No immediate buying spree: The plan does not include direct federal purchases of BTC but allows for “budget-neutral” methods to expand reserves, such as using proceeds from other seized assets.
Does the US already have a Bitcoin stockpile? Yes, indirectly. Over the past decade, agencies have seized large amounts of BTC but historically auctioned it off rather than holding it. Trump’s policy would change that, aiming to preserve Bitcoin as a national asset.
Supporters believe this could strengthen US finances and ensure the nation isn’t left behind in a Bitcoin-driven global economy. However, critics warn of Bitcoin’s volatility and the risks of integrating a decentralized asset into government reserves.
Is the Bitcoin strategic reserve the same as the digital asset stockpile?
No, a digital asset stockpile is a separate reserve that would hold other forfeited cryptocurrencies.
The Strategic Bitcoin Reserve focuses solely on holding Bitcoin as a reserve asset, while the Digital Asset Stockpile includes other forfeited digital assets such as Ether (ETH) or USDC (USDC), though these assets might be strategically managed or sold over time. Bitcoin, however, would be held indefinitely in the reserve.
Notably, Trump’s executive order does not explicitly mention what specific crypto assets will be included in the US Digital Asset Stockpile.
Here are the commonalities and differences between the Strategic Bitcoin Reserve and the US Digital Asset Stockpile:
Historical context: US government and Bitcoin
Trump’s Bitcoin reserve plan builds on a history of US government interactions with cryptocurrency, primarily through law enforcement and asset seizures.
Seizures and auctions (Silk Road era)
The government’s relationship with Bitcoin began in 2013–2014 with the Silk Road takedown, where federal agents seized 144,000 BTC — one of the largest Bitcoin hauls ever. Rather than holding the coins, the US Marshals Service auctioned them off, setting a precedent for liquidating seized crypto.
Did you know? In 2014,…
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