NASHVILLE — At the 2024 Bitcoin Conference in Nashville, former President Donald Trump made a groundbreaking proposal: if re-elected, he would ensure that the U.S. government never sells its bitcoin holdings.

This announcement, made during his keynote speech at the largest bitcoin conference of the year, reflects a dramatic shift in Trump’s stance on cryptocurrency and highlights the growing influence of the crypto community in American and worldwide politics.

A Radical Shift in Cryptocurrency Policy

Trump’s proposal aligns with a key principle held by many bitcoin enthusiasts: “Never sell your bitcoin.”

He stated, “For too long our government has violated the cardinal rule that every bitcoiner knows by heart: Never sell your bitcoin.” This marks a stark contrast to his previous skepticism.

In 2019, Trump dismissed bitcoin as “highly volatile and based on thin air,” and in 2021, he referred to it as a “scam” that competes with the dollar. Now, he describes bitcoin as a symbol of “freedom, sovereignty, and independence from government coercion and control.”

The question is, has he done a complete turnaround and believes what he says, or is he just buying votes?

Competing Proposals at the Consensus Blockchain Conference

Trump’s announcement came amidst a series of high-profile proposals from other political figures at the conference.

Independent candidate Robert F. Kennedy Jr. proposed an ambitious plan to create a reserve of 4 million bitcoin, starting with assets seized from criminal activities and purchasing 550 bitcoin daily until the target is reached.

Kennedy remarked, “I understand that tomorrow President Trump may announce his plan to build a bitcoin Fort Knox and authorize the U.S. government to buy a million bitcoin as a strategic reserve asset.”

Senator Cynthia Lummis unveiled her plan to amass a federal reserve of 1 million bitcoin over five years, with the goal of using it to reduce national debt. “It will be held for a minimum of 20 years and can be used for one purpose: Reduce our debt,” Lummis said.

Contrasts with Democratic Cryptocurrency Policy

Throughout his speech, Trump criticized the Democrats’ regulatory approach to crypto, promising to dismantle what he termed their “anti-crypto crusade.”

He pledged to fire SEC Chairman Gary Gensler and create a “bitcoin and crypto presidential advisory council” to develop industry-friendly regulations. “The Democrats’ repression of crypto and bitcoin is wrong and it’s very bad for our country,” Trump said.

“Let me tell you if they win this election, every one of you will be gone. They will be vicious. They will be ruthless. They will do things that you wouldn’t believe.”

Growing Support and Cryptocurrency Funding

Trump’s newfound enthusiasm for bitcoin has garnered significant support from the crypto community. His campaign has raised over $4 million in various cryptocurrencies, including bitcoin, ether, and USDC, with major contributions from prominent investors like Tyler and Cameron Winklevoss.

Venture capitalists Marc Andreessen and Ben Horowitz, among others, have also pledged substantial donations to pro-crypto political action committees supporting Trump.

Future Prospects of Cryptocurrency in U.S. Politics

The growing focus on cryptocurrency in the 2024 presidential race highlights the need for the Democrats to develop a clear and effective crypto policy. As crypto lobbyists and supporters become more prominent in Washington, the Democrats must decide whether to maintain their current regulatory stance or adapt to the changing landscape.

Vice President Kamala Harris has begun to engage with the crypto community, with her campaign reaching out to industry leaders for input. “Every presidential candidate needs to understand, digital asset, pro-innovation voters are here to stay,” Democratic Rep. Wiley Nickel of North Carolina told CNBC. “I want to keep this as a bipartisan issue. I don’t want Donald Trump to politicize this issue.”

Summary

Trump’s bold proposals at the Bitcoin Conference reflect a significant shift in his approach to cryptocurrency, aligning more closely with the growing crypto advocacy in Washington. As the 2024 presidential race intensifies, the crypto community’s influence on American politics becomes increasingly evident.

Whether Trump’s plans will materialize remains to be seen, but his commitment to integrating bitcoin into national policy marks a pivotal moment in the evolution of digital currency in the U.S.

The author does not own or have any interest in the securities discussed in the article.