5 Promises made by Trump to the cryptocurrency market

Donald Trump's victory in the US presidential election, declared this Wednesday (06), generated a wave of enthusiasm among cryptocurrency enthusiasts. Just before the release of the official result, Bitcoin (BTC) rose to US$75,300 and renewed its historic high, confirming this optimism.

According to Hong Fang, president of the OKX exchange, this result was a watershed for cryptocurrencies. Fang believes that Trump's victory will make the market enter a new phase inside and outside the US.

“Today’s all-time high, driven by Trump’s election victory, signals that we are in the midst of a potential paradigm shift for the next phase of growth in the crypto market. As a candidate, Trump sent very optimistic signals to the market, indicating his support for the crypto industry and strengthening the United States' status as a global, regulated hub for cryptocurrencies,” said Fang.

During the election campaign, the now president-elect made a series of promises that help explain his optimism about victory. Below are the top five of them that Trump could fulfill over the next four years.

SEC changes

Trump promised to make drastic changes to the US Securities and Exchange Commission, the SEC, starting with its top command. According to the president, this includes the resignation of current SEC Chairman Gary Gensler, which is expected to occur on the first day of the new administration.

Gensler has been a key player in the regulation of cryptocurrencies, as he has initiated several lawsuits against companies in the sector operating in the US. These measures contributed to driving industry away from the country and causing technological and regulatory delay.

Trump's move shows that he plans to push for policies that support the cryptocurrency industry. Therefore, Gensler and his stance will probably not be welcomed.

Hester Pierce, an SEC commissioner who has a pro-cryptocurrency stance, is one of the names that could replace Gensler.

Make the US a global hub

The future new SEC president will have the mission of helping the Trump administration make the US the “cryptocurrency capital of the world”. This is another promise made by Trump: to create a favorable environment for companies working in the sector.

For a long time, many cryptocurrency companies have chosen to adopt overseas countries as their headquarters because of the Joe Biden administration's anti-crypto stance. Now, they can return to the USA if Trump manages to make the country have friendlier laws.

The fact that the current president has a majority in both the American House and Senate may make this task easier. However, policy initiatives often require detailed negotiations and may be subject to procedural delays.

“Investors remain cautiously optimistic, understanding that significant legislative changes may take time to materialize despite a promising environment. This careful approach reflects the balance needed as the administration and Congress chart a path forward for the industry,” said Min Lin, chief business officer at Bitget.

Create a Bitcoin reserve

Trump plans to create a “Bitcoin stockpile” in the US, treating Bitcoin as a national asset, like gold. This would mark a major shift in how digital assets are integrated into US financial policy.

This could also help cryptocurrency move from being a risky asset to a reserve asset, similar to how investors view gold. And if the US decides to invest billions of dollars in purchasing BTC, the price could reach new all-time highs during Trump's administration.

“This scenario creates a promising setup where, if supportive policies for cryptocurrencies are implemented, we could see the market replicate BTC’s impressive performance earlier this year,” highlights Lin.

Retain seized Bitcoins

In addition to purchasing BTC, Trump promised not to spend the Bitcoins that the US already has in reserve. In 2024, the country has 203,650 BTC ($14.95 billion), much of it seized with the closure of the Silk Road website.

Trump plans to create a national reserve to protect BTC from legal seizures. Instead of selling them, the US would save them to build a strategic reserve of an unconfiscable asset.

The US is already the largest holder of BTC among world governments and Trump's decision would solidify the country's position, especially if his administration actively purchases more Bitcoin.

Zero tax

Lastly, Trump's plan includes removing capital gains tax on Bitcoin transactions. This would make it more attractive for US investors to buy, hold and spend the cryptocurrency.

The end of this tax would also end up generating more institutional inflows into the Bitcoin ecosystem, as more companies will be confident in including the flagship cryptocurrency on their balance sheets. Furthermore, it could attract investors who own large sums of BTC to move to the USA, where they could enjoy their gains without having to pay taxes.