If you’ve been following the ongoing US Presidential elections (and let’s face it, after Sunday’s horrific scenes, who hasn’t?), you might have noticed that cryptocurrency is coming up more often. While it might have seemed like a non-issue in the last election cycle, Donald Trump and the Republican party seem to be aggressively targeting the crypto crowd this time.
Along with a series of moves to gain the support of the industry on the part of Trump, the Republican party has released its latest manifesto. In this manifesto, which was published under the ‘Make America Great Again’ platform, the party has outlined its plans for the crypto sector.
Taking Aim at the Democrats
In true campaign fashion, the manifesto criticized the Democratic party for not being supportive enough of the crypto space. It also promised that the Republicans would end their ‘un-American crypto crackdown’. This is in line with previous statements made by likely Republican candidate Donald Trump that the Biden administration has not done enough to support the crypto industry.
Interestingly, the manifesto also says that the Republicans will oppose the creation of a Central Bank Digital Currency (CBDC). Over the years, several countries like the Bahamas and China have released crypto versions of their national currency and this has been seen as a move to support the industry. In fact, there have been calls for the United States to follow suit but clearly, the Republicans do not believe that this is the way forward.
Should the Republicans come into power and keep to this promise, the United States will remain one of the world powers without any CBDC in use or development.
Republicans: Champions of Self-Custody?
Another mention of crypto in the manifesto noted the party’s plans to defend the rights of crypto owners.
“We will defend the right to mine Bitcoin, and ensure every American has the right to self-custody of their Digital Assets, and transact free from Government Surveillance and control,” the document says.
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Bitcoin mining has been a sensitive subject both within the outside of the industry for years. Beyond the concerns about the impact of Bitcoin mining on the environment, it is one of the ways in which governments around the world have cracked down on crypto activities. But as the Republican party explains, this right will be protected should they regain control of the white house.
Self-custody of digital assets is yet another hard-hitting issue. One of the major selling points of crypto is that it allows consumers to use their assets in whatever ways they want. This, along with the financial benefits available to crypto users, has made it a very in-demand asset class.
Over the last decade, cryptocurrency has gone from an obscure concept to outperforming legacy assets like gold. Bitcoin, for example, reached a new all-time price high this year and was approved for a spot ETF by the SEC. This has sparked a wave of aggressive investment in tokens across the board by investors looking to cash out. As Michael Graw explains, many investors are looking for the best coin to buy now, whether that is Bitcoin itself or one of the thousands of altcoins available.
We also have to consider the various ways that consumers use crypto such as gambling. Recently, there has been a spike in people turning to crypto betting sites to multiply their earnings, creating yet another use case for the token. This has led to casinos being launched that allow the use of crypto exclusively or alongside fiat currency, intertwining the gambling and digital asset market.
Naturally, because there is so much investment in crypto, some investors are anxious about the government restricting their activities as has been done in countries like China. This is a pain point the Republicans are addressing, with the promise that crypto users will be able to use their assets and store them as they wish. Naturally, as this is a promise being made by a political party, some wonder if it will be kept.
Can These Promises Be Kept?
With all these promises being made by the Republican party in a bid to secure support from the crypto industry, it is worth exploring whether these promises can be realistically kept. First, there is the stopping of the alleged crackdown by the Democratic Party on cryptocurrency. While there is some evidence that the current US administration could do more to support the crypto space, there is no proof that the government is ‘cracking down’ on crypto in the way this suggests.
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In countries like China, crypto is outright illegal to use and mining equipment has been seized en mass through sting operations. In the US, however, cryptocurrency is free to use and states all over have been passing laws that make sure the industry is regulated. Some might argue that some of these laws are stringent but few would call it a crackdown per se. At the same time, it is possible that the Republican party will enforce more pro-crypto laws or lose up on the laws already in place.
Then there is the matter of a CBDC, specifically the digital dollar. The Republican Party has made it clear that it will oppose the CBDC but this might not be the popular option. The US has been criticized for years for lagging behind other world powers like China and Europe by being slow to develop the CBDC. While some do not see CBDCs as ‘real’ cryptos or as a form of government surveillance, there is no doubt that not having one when other major nations do does not benefit the US. Even if the Republican party opposes a CBDC ideologically, the pressure will only intensify if other countries make progress on theirs.
A CBDC could also be beneficial for the crypto space as it offers digital assets in a way that the average consumer might be more receptive to. Many people still distrust cryptos like Bitcoin but a token coming from the government could be a major driver of adoption as it is palatable.
The right to mine Bitcoin and use cryptos with little interference, however, is something that could be done and earn the party favour from the industry. While, as we’ve said, the US isn’t exactly banning crypto use or seizing crypto mining equipment, some sort of law explicitly protecting the right to use and create digital assets is not out of the question but it could be done.
After all, crypto is already legal tender in El Salvador, and this was considered a landmark decision when it was first announced. The Republican party, should it take office, could take the bold step to pass unprecedented crypto laws and fulfil this promise.
Conclusion
This election cycle has seen Donald Trump and the Republican Party zero in on the crypto industry and brand themselves as the champions for digital assets. With this manifesto, their ambitions are made even more clear, with plans outlined for crypto mining, CBDCs, and digital asset ownership.
There is still some controversy surrounding Trump as a candidate and the true intentions of the party. Still, this is perhaps the most effort that the industry has seen from either side of the political aisle thus far. Only time will tell if these plans truly come to pass.
