Trump claims that if he wins the presidential election, he will support the cryptocurrency industry and overturn the conviction of the Silk Road founder. Should the community trust him?
Former US President and Republican candidate Donald Trump has endorsed the cryptocurrency industry ahead of the upcoming election.
“I am very positive and open-minded about crypto companies and everything related to this new and fast-growing industry. Our country must be a leader in this field. There can be no second place.”
Republican candidate Donald Trump
Speaking at the Libertarian Party National Convention, he said the future of cryptocurrencies will be built in the United States, and pledged to support self-custody for the country's 50 million digital asset holders.
President Trump also promised to steer Senator Elizabeth Warren away from Bitcoin (BTC) and would never approve the launch of a CBDC. President Trump believes that current President Joe Biden is trying to block the expansion of the cryptocurrency industry into the U.S. market.
“I will ensure that the future of cryptocurrency and Bitcoin is built in America, not overseas. I support the right to self-governance.”
Republican candidate Donald Trump
Freeing the Founder of the Silk Road
During the same speech, the Republican leader promised to free Ross Ulbricht, the founder of the darknet marketplace Silk Road, whose sentence Trump has pledged to vacate on Day One if he wins the election.
“He's already served 11 years. We're going to bring him home.”
Republican candidate Donald Trump
Ulbricht gets two life sentences
The Silk Road was an anonymous marketplace used to facilitate illegal activities such as drug trafficking and money laundering.
Silk Road, which was shut down in 2013, processed up to $45 million worth of payments (all in BTC), meaning the marketplace was once one of the largest holders of BTC. Law enforcement reportedly seized 174,000 BTC from Ulbricht and the Silk Road syndicate.
In February 2015, Ulbricht was sentenced to two life sentences plus an additional 40 years in prison.
While he managed to evade the entire US law enforcement community for almost two years, some of the agents leading the investigation succumbed to temptation and turned to the dark net.
Over the course of the market's existence, it processed more than 1.5 million transactions worth more than $200 million and had more than 100,000 registered users. According to prosecutors, Ulbricht made approximately $13.2 million in commissions from transactions on his site.
Trump is trying to take over the cryptocurrency industry
Earlier this month, the Republican candidate pledged his support for the cryptocurrency industry at an event promoting his Mugshot Edition NFT collection and contrasted it with the Biden administration's policies.
The Trump campaign then began collecting donations in cryptocurrencies such as Bitcoin and Dogecoin (DOGE).
Bitcoin Magazine CEO David Bailey also confirmed his involvement with the Trump campaign, saying the magazine is helping craft a proposal to regulate the cryptocurrency market that would become law if the Republican candidate wins.
He said the magazine has begun soliciting donations for Republican presidential campaigns, with plans to raise $100 million, including cryptocurrency, revealing that he is desperate for the votes of crypto enthusiasts.
Crypto community pushes back against Biden
Amid the presidential election campaign, support for Trump from the crypto community has grown even as criticism of the current administration's stance on cryptocurrencies has grown.
Cardano co-founder Charles Hoskinson stated Biden's desire to “disrupt the American cryptocurrency industry.”
Hayden Adams, founder of decentralized exchange Uniswap, also called the administration's actions an “all-out war” on the industry, and acknowledged that Biden's opposition to cryptocurrencies could cost him the election.
ConsenSys CEO Joseph Rubin believes that the Securities and Exchange Commission (SEC), led by Gary Gensler and with the backing of the president, is intentionally stifling innovation in the United States, threatening the future of the country's financial system.
Trump steps forward, Biden turns 180 degrees
With President Trump's support for the crypto industry, the Biden administration has also joined the race to win the crypto community's votes.
Although experts predict Biden will lose the presidential election, the Biden administration appears to be struggling to change the discourse on cryptocurrencies.
This has been demonstrated by several events, most notably the approval of a spot Ethereum ETF last week, with experts pointing out that this could be a political decision as Biden and the Democratic Party are desperate for the younger generation to vote.
Additionally, in May, the U.S. Senate and House of Representatives voted to repeal SEC Rule SAB121, which prohibits highly regulated financial institutions from holding cryptocurrencies on their balance sheets.
Thus, the SEC has shut down the ability of American banks to act as custodians for their customers' digital assets.
Additionally, the U.S. House of Representatives approved the Financial Innovation and Technology for the 21st Century (FIT21) Act, which many, including Coinbase CEO Brian Armstrong, see as a historic moment and a step toward precise regulation of the industry in the United States.
Who Will Win?
Despite Biden's efforts in recent weeks, he still lags behind Trump in support of the crypto community. It remains to be seen whether Trump will follow through on his campaign promises this time around. However, Biden will be remembered as one of the few heads of state who followed through on most of his campaign promises during his presidency.
