Trump Fears Ceding Crypto Market Leadership to China
As cryptocurrencies continue to dominate the US election discourse, Donald Trump discussed the implications for the crypto market in a detailed interview with Bloomberg Businessweek, touching on topics like cryptocurrencies, NFTs, and the chip industry.
The discussion began with a reminder of Trump's previously harsh stance on cryptocurrencies during his presidency, when he famously called it “a disaster waiting to happen.
“I’ve been right,” Trump confidently claimed, referencing the collapse of the so-called cryptocurrency empire led by SBF.
Today, Trump's view has shifted dramatically, partly due to the potential threat of China dominating the global cryptocurrency market.
If we don’t do it, China is going to pick it up and China’s going to have it,
he believes.
Trump has come to appreciate the potential of the cryptocurrency sector more deeply after experimenting with NFTs—his series of 45,000 Trump cards sold out in a single day. He is now planning the release of a fourth series of his NFTs, responding to public demand.
However, it was the monetary possibilities of cryptocurrencies that particularly impressed the fiat billionaire.
“But the thing I really noticed was everything was paid in crypto, in this new currency. And it opened my eyes,” the presidential candidate reflected.
The human element also played a significant role in his renewed interest in cryptocurrencies.
“Also, it’s not going away. It’s amazing… I went to San Francisco, I met many people that—these are people that this is really becoming an industry for,” Trump recounted, thinking back to a fundraising event for his campaign on June 6, 2024.
Major players in the crypto market are injecting millions of dollars into Trump’s campaign and are actively advising his team on cryptocurrency regulations.
The crypto industry is keenly hoping that the White House under Trump's leadership would foster a regulatory environment favorable to cryptocurrencies and also curtail what it sees as SEC Chairman Gary Gensler's excessive crackdown on crypto.
At the same time, Trump's main political rival, Joe Biden, is losing support from long-time backers. Notably, Marc Andreessen, co-founder of venture capital firm Andreessen Horowitz, now believes Trump's policies would be more beneficial for startups—convinced by Trump's commitment to fostering innovation. During a dinner with venture capitalists, discussions with Trump on artificial intelligence took a serious tone.
What he said to us is, ‘AI is very scary, but we absolutely have to win because if we don’t win, China wins,
shared Ben Horowitz, another co-founder of Andreessen Horowitz.
Moreover, Andreessen views Trump’s approach to cryptocurrency regulation as “a flat-out blanket endorsement of the entire space.”
Indeed, in his Bloomberg Businessweek interview, Trump expresses a paternal affection for the crypto industry:
So we have a good foundation. It’s a baby. It’s an infant right now. But I don’t want to be responsible for allowing another country to take over this sphere. And so I think we’re going to be good.
Overall, it appears that Trump aimed to charm not only crypto enthusiasts but the entire big tech sector.
“My uncle was at MIT. I love tech,” Trump casually mentioned, referencing his uncle John Trump, who served as a professor of electrical engineering at the prestigious institution for 52 years.
Trump and Social Media
In Donald Trump's comments about Mark Zuckerberg, a hint of resentment still lingers. Trump has not forgotten how the Meta owner banned his accounts across his social media platforms.
“... Zuckerberg—who would come to the White House all the time and be so nice to me. … He would come and say you have more [followers]. Congratulations, you’re No. 1. And I was. I was No. 1. And… of a sudden I went from No. 1 to having nobody,” Trump laments.
Trump criticizes social media platforms for their significant influence, claiming they adversely affect youth, contributing to waves of suicides and corrupting elections. Despite these strong statements, he paradoxically mentions that his future administration would not ban TikTok.
“But now [that] I’m thinking about it, I’m for TikTok because you need competition. If you don’t have TikTok, you have Facebook and Instagram, and that’s, you know, that’s Zuckerberg,” explains Trump.
Trump and Taiwan
Trump also sharply criticized Taiwan, claiming that the Taiwanese have taken away America’s semiconductor industry, yet the U.S. continues to spend heavily on their defense.
“They’re immensely wealthy. And I don’t think we’re any different from an insurance policy. Why? Why are we doing this?” he questions. It appears Trump plans to continue Biden's initiative to repatriate chip manufacturing to America.
Trump's Other Messages
- Trump has pledged to reduce electricity costs and abandon the goal of completely replacing oil and natural gas with renewable energy sources. This is good news for Bitcoin miners, who have long irritated environmentalists with their substantial energy demands. “He would not use the Energy Department to single out Bitcoin miners,” confirms Brian Morgenstern, former White House and Treasury Department staff member during the Trump administration, and now head of public policy at crypto miner Riot Platforms Inc.
- It appears that Federal Reserve Chairman Jerome Powell will be allowed to complete his term, which ends in 2028.
- Trump may consider Jamie Dimon, the CEO of financial powerhouse JPMorgan, for the position of Treasury Secretary.
Despite the fairly positive messages towards the crypto industry, it's premature to assert that Trump will maintain his optimism about digital assets. The volatility of the crypto markets and the unscrupulous behavior of some players could easily revive the skepticism that Trump expressed towards cryptocurrency just a few years ago.
However, for now, Trump is voicing what the crypto sector wants to hear. Whether he is motivated purely by electoral considerations or genuinely believes in what he is saying will become clear soon.
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