VBIT Hong Kong
During the US election campaign in July 2024, the Republican presidential candidate at the time, Donald Trump, told a Bitcoin conference that the United States should lead the cryptocurrency sector and avoid being overtaken by China or other countries. His remarks attracted widespread attention and formed part of his efforts to win support from cryptocurrency holders.
1. A determination to lead the global cryptocurrency market
At the Bitcoin 2024 conference in Nashville, Tennessee, Trump said he would make the United States the global leader in cryptocurrency and introduce more supportive regulation, contrasting his approach with the Democratic policies represented by Vice President Kamala Harris. He stressed that China and other countries would quickly fill the gap if the United States did not swiftly embrace and advance cryptocurrency technology.
2. Establishing a national Bitcoin reserve
Trump announced plans for a presidential cryptocurrency advisory council and a national Bitcoin reserve using the substantial cryptocurrency holdings seized by the US government in law-enforcement operations. He urged American citizens and businesses not to sell their Bitcoin, promising that, if elected, his administration would retain the government's Bitcoin holdings as the core of a national Bitcoin stockpile.
3. Market reaction and the outlook
Although Trump called cryptocurrency a scam in 2021, his comments at the time indicate support for the sector. Bitcoin initially fluctuated after his speech but subsequently rebounded, rising 0.94% to US$68,182 in the historical report. This was a market snapshot, rather than a live price.
4. Industry responses and regulatory challenges
Many countries, including the United States, remain cautious about privately operated digital currencies because of concerns that they could undermine financial and monetary stability. Nevertheless, some cryptocurrency advocates welcomed Trump's proposals as an important step towards legitimising the sector.
Meanwhile, the cryptocurrency industry has criticised a series of enforcement actions by the US Securities and Exchange Commission (SEC) under President Joe Biden's administration. The SEC has accused several cryptocurrency trading platforms, including Coinbase and Binance, of illegally trading unregistered securities. The companies deny the allegations.
5. Political and electoral implications
Nearly 30 Democratic lawmakers and congressional candidates wrote at the time to the Democratic National Committee and Kamala Harris, urging a positive approach to digital assets. They argued that cryptocurrency and blockchain technology could have a substantial influence on electoral success.
Historical sources: Conference speech transcript, 27 July 2024
