Bitcoin Soars as Trump Takes Office, Fueling Hopes for Crypto Industry
WASHINGTON, D.C. - On the eve of President-elect Donald Trump's inauguration, bitcoin's price surged past $109,000. This surge reflects the cryptocurrency industry's optimism that Trump will prioritize the sector upon his return to the White House.
Trump, a former bitcoin skeptic, has since embraced digital currencies with enthusiasm. He has launched a new cryptocurrency venture and promised to establish the U.S. as the global "crypto capital." His pledges include creating a U.S. crypto stockpile, implementing industry-friendly regulations, and appointing a crypto "czar" for his administration.
"You're going to be very happy with me," Trump said at a bitcoin conference last summer.
Bitcoin, the world's leading cryptocurrency, emerged in 2009 as an electronic cash system independent of central banks and governments. Since then, cryptocurrencies have gained mainstream attention, albeit amidst volatility and concerns regarding their use in illicit activities.
Despite skepticism, cryptocurrencies have weathered market downturns and attracted wealthy investors. These investors, feeling unfairly targeted by the Biden administration, supported Trump's election campaign.
Since Trump's victory, bitcoin's price has skyrocketed, surpassing $100,000 for the first time last month. On Monday, it surged over $9,000, according to CoinDesk.
Trump's cabinet and regulatory appointments include several crypto supporters, including his nominees for Treasury and Commerce Secretaries and the head of the Securities and Exchange Commission (SEC).
To mark the arrival of the "crypto president," industry leaders hosted the inaugural "Crypto Ball" on Friday. The sold-out event, with tickets costing thousands of dollars, celebrated Trump's pro-crypto stance.
Here are key actions Trump could take:
Crypto Council: Trump plans to establish an advisory council within his first 100 days to guide the development of clear and straightforward crypto regulations. Tech executive David Sacks has been designated as the administration's crypto "czar," and Bo Hines will serve as executive director of the "Presidential Council of Advisers for Digital Assets."
Strategic Bitcoin Reserve: Trump has pledged to establish a government stockpile of bitcoin, similar to the existing gold reserves. Advocates propose a draft executive order that would create a "Strategic Bitcoin Reserve" as a permanent national asset managed by the Treasury Department.
Ross Ulbricht: Trump has expressed support for commuting the life sentence of Ross Ulbricht, the founder of the dark web marketplace Silk Road. Crypto advocates advocate for clemency, arguing that government overreach occurred in building the case against Ulbricht.