On May 9th, Trump publicly expressed rare support for cryptocurrency for the first time.
Written by: Carbon Chain Value
On May 9th, Trump publicly expressed rare support for cryptocurrency for the first time. According to a Fox News reporter, Trump will ensure that cryptocurrency can be used for his campaign donations. In a widely circulated short video speech, Trump said, "Can we use cryptocurrency to donate to the Trump campaign? I believe the answer is yes."
Influenced by Trump's remarks, the meme token TRUMP briefly touched $6.09, with a 24-hour increase of 26.09%.
Strictly speaking, Trump has always taken a "criticizing" stance on cryptocurrency. As early as 2019, during his tenure as president, Trump expressed his dislike for cryptocurrency, calling them "not money." He even said that he has always liked one currency, which is the US dollar.
The turning point of this stance occurred on February 20th. At that time, Trump, in an interview with Fox News before the South Carolina primary, said, "I can accept Bitcoin." This statement was interpreted by the public as a softening of Trump's stance on Bitcoin. This statement quickly sparked public opinion. Trump also said that Bitcoin has its own life and may need some regulation. Many people are accepting it. I see more and more people wanting to pay with Bitcoin. Anyway, I can accept it.
In summary, this is the second time Trump has publicly supported Bitcoin. From criticism to support, why did Trump's stance change? I think it's because of the voting power in the hands of the cryptocurrency audience. According to incomplete statistics, as early as 2022, close to 14% of Americans held digital assets, and the majority were young people. Two years later, against the backdrop of the SEC approving a Bitcoin ETF, this number will only increase, not decrease.
From the current time point to November, it is a crucial moment for the US presidential election, and Bitcoin is an important digital asset pursued by young people. It is not difficult to imagine that the real motivation behind Trump's statement is to cater to the widespread young Bitcoin audience at present, hoping they will vote for him. Therefore, it is very wise to stand on the side of the young Bitcoin audience. Pulling votes is currently an important task for both Trump and Biden. In fact, Biden had already launched a campaign to pull votes around Bitcoin on social media platforms X and Tiktok before Trump.
This move is foolproof. Why? If readers are interested, they can refer to and review the impact of the Bitcoin statements made by the Bitcoin enthusiast and presidential candidate Milei before the presidential election in Argentina, as well as the impact of the Bitcoin support statements made by President Bukele during his second presidential campaign in El Salvador.
On May 8th, according to Forbes, Bitcoin and cryptocurrency will play a bigger role in this year's US election than in 2016 or 2020. According to a survey commissioned by the Digital Currency Group (DCG) from the Harris Poll, about 21% of voters in key swing states in the US consider cryptocurrency policy to be an important topic, enough to sway their support.
At the same time, according to a report released by the consumer advocacy organization Public Citizen using data from Opensecrets, the cryptocurrency industry's super PAC has raised about $100 million for the 2024 congressional elections.
Coincidentally, in sharp contrast to Trump, today, the White House announced that Biden will veto the legislation "allowing financial companies to custody Bitcoin."
According to BitcoinMagazine, the White House Office of Management and Budget stated: The government strongly opposes the H.J. Res. 109 bill because it would undermine the Securities and Exchange Commission's (SEC) work to protect cryptocurrency market investors and maintain a broader financial system. If the president receives H.J. 109, he will veto it. The legislation was intended to allow tightly regulated financial companies to act as custodians for Bitcoin and other cryptocurrencies.
Billionaire Tim Draper posted on social media, stating that the White House's veto of the legislation is driving entrepreneurs out of the United States. Tim Draper said, "Do you know where all the new jobs and almost all innovation come from? They come from the entrepreneurs who are starting to leave America."
According to the Congressional Review Act (CRA), H.J. Res. 109 would overturn the Securities and Exchange Commission's Staff Accounting Bulletin (SAB) No. 121, which imposes restrictions on financial institutions holding digital assets in custody. By overturning SAB No. 121, this bipartisan resolution will remove barriers for tightly regulated financial institutions and companies to act as custodians for Bitcoin and digital assets.
Patrick McHenry, chairman of the House Financial Services Committee, expressed support for overturning the SEC's SAB 121, saying: SAB 121 is one of the most obvious examples of regulatory overreach by Gary Gensler during his tenure at the SEC. Through SAB 121, the SEC is trying to dictate how financial institutions and companies should handle their clients' digital assets under the guise of staff guidance.
"SAB 121 requires financial institutions and companies that hold customer digital assets on their balance sheets. This means that banks need to bear a significant amount of capital, liquidity, and other costs under the existing prudential regulatory framework. This essentially makes the cost of financial institutions custodianship of customer digital assets too high. This is in stark contrast to how traditionally regulated banks are required to treat assets they hold on behalf of their clients."
US Congressman French Hill also spoke in support of H.J. Res. 109, saying: Using custodial assets as reserve funds is not a standard financial service practice. The Biden administration's SAB 121 is wrong and should be repealed.
The US Chamber of Digital Commerce is a US advocacy organization in Washington, DC that promotes the development of the Bitcoin industry. Cody Carbone, the organization's chief policy officer, said: President Biden issued a government policy statement saying he would veto H.J. Res 109, which would repeal the Securities and Exchange Commission's Staff Accounting Bulletin (SAB) 121, which is frustrating for us. SAB 121 effectively prohibits trusted custodians from managing digital assets.
Earlier this year, US Congressmen Mike Flood and Wiley Nickel co-wrote a bipartisan column on the "flawed SAB 121 guidance" from the Securities and Exchange Commission, pointing out that "when it comes to digital asset custody, it is clear that our most regulated institutions need to be involved." They expressed concern about the lack of custodian options for Bitcoin spot ETFs, as this could lead to concentration risk.
Result: H.J. Res 109 was formally passed in the House by 228 votes to 182 votes and is now entering the Senate process.
If the cryptocurrency audience votes based on today's performance of Trump and Biden, Trump is undoubtedly the winning side.
In addition, Jeff Kendrick, head of foreign exchange and cryptocurrency research at Standard Chartered Bank, believes that Trump and the Federal Reserve may help Bitcoin reach a historical high of $200,000 in 2025, bringing the market value of cryptocurrency back to about $4 trillion.
Kendrick's reason is that as the US fiscal dynamics become increasingly unsustainable, the risk of the Federal Reserve monetizing government debt is increasing. This may drive the price of Bitcoin to soar to between $150,000 and $200,000 by the end of 2025.
Kendrick said, "As investors seek alternative assets, this situation will broadly support digital assets. We believe that Trump's second government will be widely positive through a more favorable regulatory environment."
免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。
