US Republican Presidential candidate Donald Trump recently made a bold promise to the crypto community at the Bitcoin 2024 conference in Nashville. He stated that if elected, his administration would mandate the US government to keep “100%” of the Bitcoin it currently holds or acquires. This promise signifies a significant shift in the government’s approach towards Bitcoin holdings, as it aims to adhere to the cardinal rule of never selling BTC.
Trump’s plan for the US to hold all of its Bitcoin holdings has potentially bullish implications for the cryptocurrency. The US government currently holds a substantial amount of Bitcoin, with data showing that it owns 213,239 BTC. By committing to keeping these holdings intact, Trump’s administration could remove a significant portion of Bitcoin from circulation, impacting the token’s price positively.
Most of the US government’s Bitcoin holdings came from seizures made during the investigation of the dark web marketplace Silk Road. The notorious platform was created by Ross Ulbricht, who is currently serving a prison sentence. Interestingly, Trump also reiterated his promise to commute Ulbricht’s sentence if elected, although recovering the Bitcoin seized from Silk Road’s hacker may prove challenging.
Prior to his appearance at the Bitcoin conference, Trump had expressed support for Bitcoin and other cryptocurrencies. This led to speculation in the market that a Trump victory in the presidential elections could lead to significant price increases for Bitcoin. Companies like Standard Chartered even predicted that Bitcoin could reach $150,000 by the end of the year if Trump is elected, highlighting the impact of political figures on the cryptocurrency market.
In addition to price speculation, a Trump victory is expected to bring about clearer and more favorable regulations for cryptocurrencies. The current approach taken by the US Securities and Exchange Commission (SEC), which involves regulation through enforcement actions, has negatively impacted the crypto market. A Trump administration is likely to provide a more supportive regulatory environment, which could further boost cryptocurrency prices.
Donald Trump’s promise to have the US government retain all of its Bitcoin holdings if elected has stirred up excitement and speculation in the crypto community. The potential impact of such a move on Bitcoin’s price, combined with promises to commute sentences and improve regulatory clarity, sets the stage for significant changes in the cryptocurrency landscape if Trump assumes office. It remains to be seen how these promises will play out and whether they will shape the future of Bitcoin and other cryptocurrencies in the US.
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