Trump's Important Statement! The United States Must Dominate Crypto Assets, Regulatory Reform to Push for World Number One Ambition

U.S. President Trump made strong statements that rapidly spread in the Crypto Assets field. He said, “I only care about one thing, and that is whether we can take the lead in the Crypto Assets space.” This statement shows his emphasis on the importance of the U.S. leading the global digital asset industry. Trump has publicly expressed skepticism towards Crypto Assets, labeling Bitcoin as “dangerous” years ago, but his stance has completely changed over the past two years, and he now views Crypto Assets as an important component of the future of the U.S. economy.

A 180-Degree Turn from Doubt to Support

(Source: Youtube)

Trump has publicly expressed skepticism towards Crypto Assets. Years ago, he called Bitcoin “dangerous” and stated that digital assets could harm the US dollar. For most of his first term, Trump's attitude towards Crypto Assets was cautious, if not hostile. He stated on social media that Bitcoin and other Crypto Assets “are not real currency,” and that their value is “highly volatile and based on air.” He also warned that Crypto Assets could be used for illegal activities and tax evasion.

But over the past two years, his stance has undergone a complete transformation. Nowadays, Trump views Crypto Assets as an important component of the future of the American economy. The timing of this attitude shift is intriguing, occurring precisely during his preparation for a second presidential campaign. The Crypto Assets industry has poured hundreds of millions of dollars in political donations into the 2024 election, supporting candidates friendly to Crypto Assets. The Fairshake Super Political Action Committee has raised $260 million, a significant portion of which has gone to Republican candidates.

Trump has also shown interest in formulating a national digital asset strategy. In multiple events, he suggested that the United States should establish a strong Crypto Assets plan to support innovation and attract major investors and companies to invest in the U.S. This shift has drawn the attention of the entire Crypto Assets community. From a policy execution standpoint, Trump indeed delivered on his promise during his second term. He dismissed SEC Chairman Gary Gensler and appointed the Crypto Assets-friendly Paul Atkins to take over. He also signed an executive order to establish a national Bitcoin reserve and allowed Americans to invest their retirement savings in Crypto Assets.

This kind of shift from skepticism to strong support is not uncommon in politics, but the extent of the change is indeed remarkable. Trump not only changed his attitude but also placed Crypto Assets at the core of his economic policy. Behind this shift are both the practical considerations of political donations and a strategic judgment about the global technological competitive landscape.

Global Crypto Assets Competition Against China

Trump stated that the main reason he advocates for a leading position in the Crypto Assets field is global competition. He believes that other countries, especially China, are rapidly developing. He is concerned that if the United States slows down, it may fall behind in one of the most important technological fields in the future. This narrative of competition is extremely common in Trump's political rhetoric, as he often frames policies as a zero-sum competition between the United States and China.

However, this statement is somewhat exaggerated in the field of Crypto Assets. China completely banned Crypto Assets trading and mining in 2021, which led many mining companies and Crypto Assets enterprises to relocate to North America. From this perspective, the United States has already taken a leading position in the Crypto Assets field. Although China is at the forefront in terms of Central Bank Digital Currency (CBDC), it has significantly fallen behind in decentralized Crypto Assets.

Trump's concerns may point more towards other competitors. The EU has established a comprehensive regulatory framework for crypto assets through the MiCA legislation, while countries like Singapore and the UAE have attracted a large number of crypto businesses through friendly regulatory environments. These jurisdictions may be the true competitors to the United States. Trump's remarks indicate that he recognizes that leadership in the digital asset space is not only about economic interests, but also about the power to set technological standards and the future discourse power of the financial system.

Trump also believes that Crypto Assets can create new job opportunities, new companies, and new industries. For him, becoming a leader in the global Crypto Assets field is not just about money, but also about power, influence, and maintaining a leading position in the competition with emerging economic rivals. This mindset of combining economic policy with geopolitical strategy is a typical characteristic of Trump's political style.

Trump Crypto Assets Strategy's Three Pillars

Global Competition: Countering competitors like China to ensure the United States maintains its leadership position in the Crypto Assets sector.

Economic Growth: Creating job opportunities, new companies, and new industries to drive economic development.

Regulatory Reform: Establish clear rules to support innovation and attract global capital and enterprises.

The Necessity of a Clear Regulatory Framework

One of the issues that Trump is most concerned about is regulation. He believes that American Crypto Assets companies face too many ambiguous and complex rules. He thinks this will push innovation away from the United States and shift it to other countries. He believes that the U.S. needs to establish clear and understandable rules that can promote the development of Crypto Assets businesses while also protecting consumer rights. Many investors agree with this view, believing that it will unleash the enormous growth potential of the American Crypto Assets market.

This criticism indeed hits the pain point of US Crypto Assets regulation. During the Biden administration, the SEC adopted a strategy of “regulating through enforcement,” filing lawsuits against multiple Crypto Assets companies without providing clear compliance guidance. This uncertainty has left many companies unsure of how to operate legally, leading some to choose to relocate to countries with more favorable regulations.

The Trump administration's approach was to first withdraw or settle these lawsuits, and then promote Congress to pass clear cryptocurrency legislation. The passage of the stablecoin regulatory framework bill is an example, which provides clear licensing requirements and operational standards for stablecoin issuers. This “legislate first, regulate later” approach is seen by the industry as a more friendly and predictable environment.

However, the simplification of regulations has also raised concerns about consumer protection. Overly relaxed regulations may lead to an increase in fraud and market manipulation, ultimately harming the interests of retail investors. Finding a balance between supporting innovation and protecting investors remains a challenge. Critics point out that Trump himself has profited over $1 billion through crypto assets businesses, and the regulatory reforms he advocates may present a conflict of interest.

Crypto Assets have become a top priority on the national agenda

Trump's new statement is inspiring, but it has also raised many questions. Supporters believe that his strong declaration helps to push for positive changes in U.S. cryptocurrency laws. Others are worried that his plans may still face political challenges. But one thing is clear: Trump has placed cryptocurrency at the forefront of his national agenda. He has expressed a desire for the U.S. to be “number one in the field of cryptocurrency,” indicating that digital assets are no longer trivial matters, but play a crucial role in global competition and future technological development.

The elevation of priority for this policy is of great significance to the Crypto Assets industry. When a political figure of presidential level publicly supports an industry, it usually brings multiple effects. First is the tilt of policy resources, including regulatory relaxation, tax incentives, and government procurement. Second is the signaling effect, as Trump's support sends a message to global investors and businesses that the United States welcomes Crypto Assets. Third is the enhancement of legitimacy, as the endorsement from the president allows Crypto Assets to move from an edge technology into the mainstream business world.

However, this politicization also brings risks. When Crypto Assets become part of partisan politics, their development may be influenced by political cycles. If the Democratic Party comes back to power in the future, it may reverse Trump's policies. In addition, Trump's own controversies may cause some traditional financial institutions to distance themselves from Crypto Assets, fearing involvement in political controversies.

Trump's statement regarding Crypto Assets highlights his goal of keeping the United States at the forefront of digital assets and supporting the growth of the Crypto Assets market. Regardless of how people evaluate Trump's motivations and methods, it is undeniable that his policies are profoundly changing the landscape of Crypto Assets in the United States and globally. Whether the United States can achieve what Trump calls “the world's first” will depend on the specific implementation of regulatory reforms, the industry's innovation capabilities, and the results of competition with other countries.