If Donald Trump wins back the presidency, he has pledged to turn America into the “crypto capital of the planet.” He would probably benefit personally from keeping his promise.
Trump has started a new cryptocurrency trading business and is promoting it on the same social media platforms he uses for his presidential campaign. Along with his daughter-in-law Lara Trump, who is married to Eric and the co-chair of the Republican National Committee, his two eldest sons, Donald Jr. and Eric, are also posting about their new platform, World Liberty Financial.
Trump has a history of combining his business and political interests; during his current campaign, he has sold Bibles, sneakers, and shares in his social media company while promoting his hotels and golf courses in the White House. Now, Trump has started a new business that has the potential to skyrocket in value if he wins the presidency and gains the authority to enact the laws and regulations that proponents of cryptocurrencies have long pushed for.
Being pro-crypto is not inherently problematic; what is problematic is embracing it while beginning to personally profit from it, according to Jordan Libowitz, a spokesman for the Washington-based government watchdog group Citizens for Responsibility and Ethics.
American economic policy may have a significant impact on this project’s success, Libowitz stated.
Digital money in the form of cryptocurrencies can be exchanged online without the help of the global banking system. Exchanges, which are online markets where cryptocurrency can be bought, sold, and traded, are where they are most frequently traded. Exchanges frequently impose fees on users who want to withdraw Bitcoin and other currencies.
According to reports, World Liberty Financial is anticipated to be a lending and borrowing platform akin to the recently compromised Dough Finance app, which was developed by four individuals identified as team members.
It’s still unclear how much of a stake Trump and his family have in World Liberty Financial, among other things. Following Lara Trump’s Tuesday post on her X account regarding our objective at World Liberty, her spouse, Eric Trump, announced on social media that both Lara and his sister, Tiffany, had fallen victim to hacking.
Trump stated that he was “not a fan” of cryptocurrencies while serving as president. In 2019, he tweeted, “Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”
However, Trump has changed his mind and adopted a positive stance toward cryptocurrencies. He declared in May that the campaign will start accepting bitcoin donations in an attempt to gather support for a “crypto army” before Election Day. This year, he also attended a bitcoin conference in Nashville, Tennessee, where he pledged to establish the United States as the “crypto capital of the planet” and to create a bitcoin “strategic reserve” using the money the government currently holds.
Trump has expressed a desire to have more influence over monetary policy in the event of another election, implying that he would pressure the Federal Reserve to cut interest rates. Additionally, he is pushing for “DeFi,” or decentralized finance, which is the umbrella term for using public blockchain space to upend the established financial industry.
In an attempt to boost energy production, Trump has also discussed providing subsidies for Bitcoin mining. He has also vowed to prevent the Federal Reserve from establishing a Central Bank Digital Currency, which would be a publicly accessible digital form of money. Many proponents of cryptocurrency are against a digital currency that is controlled by a central authority, even though this is still being investigated.
The Trump campaign may also try to connect with conservative influencers and younger men by embracing cryptocurrencies. Crypto also appeals to Trump supporters who are worried about the reach of the so-called “deep state” and government control over international markets.
Pro-Trump activist turned cryptocurrency influencer Dustin Stockton stated that he is in favor of the former president’s initiatives in the industry and the impending opening of World Liberty Financial.
“I think it’s actually a really positive thing—the Trump family’s engagement and involvement, and learning about what drives cryptocurrency,” he remarked. Stockton uses SEC head Gary Gensler’s pursuit of companies like Coinbase and Binance as evidence that the Biden administration is anti-crypto.
Congress has not passed any significant legislation or regulations, despite the White House issuing an executive order on digital assets in 2022. According to Stockton, the Biden administration’s unclear written regulations and the SEC’s harsh enforcement of cryptocurrency companies through a string of lawsuits show that “there is no clarity and there is selective and arbitrary enforcement of regulations.”
He expressed his desire for all government officials to have a deeper comprehension of this.
Professor J.W. Verret of George Mason University’s law school added that Trump would not break any laws by starting a new initiative and advocating for laws that would help it.
He sees no issue with anyone in government owning assets or starting a business; in fact, he believes it is difficult for someone to regulate a certain kind of business unless they are involved in that industry, he stated.
