Donald Trump made many promises to the cryptocurrency industry during his campaign.
Today, the entire industry is eagerly awaiting him to fulfill his pledges.
This is the moment of truth.
Trump's formal inauguration as the 47th President of the United States marks the end of months of campaigning, as well as the victory of the cryptocurrency industry, which invested nearly $200 million to influence the November election.
Industry insiders have hailed the election result as the dawn of a "golden age for cryptocurrencies". They are hopeful that Trump will deliver on the many pro-cryptocurrency promises he made during the campaign.
"We can expect a clearer regulatory framework and more government officials willing to work with the crypto industry," said Rebecca Rettig, Chief Legal and Policy Officer at Polygon Labs, in an interview with DL News last November.
Trump's election has fueled market sentiment, with Bitcoin soaring to a historic high of $109,000 in January this year. Analysts believe his presidency could further drive the crypto market, potentially reaching heights of $1 million.
The "Trump effect" has made Bitcoin the 8th most valuable asset globally, surpassing silver.
However, legal experts and industry observers expressed skepticism to DL News about Trump's ability to fulfill his promises.
"I don't think Trump truly believes in or is even interested in cryptocurrencies," said David Yermack, a professor at NYU Stern School of Business who teaches courses on corporate law and cryptocurrencies, in an interview last November.
"He was courting the libertarian vote, but now that the election is over, his crypto promises are likely to be quickly forgotten when he runs into trouble."
As Trump is sworn in today, the crypto industry is closely watching whether he will deliver on his promises. He had pledged to sign a series of executive orders on his first day as president.
However, analysts warn that if Trump fails to fulfill his crypto commitments, Bitcoin prices could plummet to $80,000.
Here are the eight pro-cryptocurrency promises Trump has made:
1. Freeing Ross Ulbricht
Trump has promised to pardon Ross Ulbricht, the founder of the Silk Road.
Ulbricht was sentenced to life in prison in 2015 for creating and operating the "Silk Road" dark web marketplace, which allowed criminal elements to conduct over $200 million in illegal drug and other illicit transactions using cryptocurrencies.
To some, Ulbricht is seen as a cryptocurrency pioneer. His imprisonment, they argue, represents government overreach, similar to the views of some on the prosecution of the Tornado Cash mixer creator and developers by international prosecutors.
But to others, Ulbricht is simply a criminal with blood on his hands. Stern's Yermack said that if this faction's voice grows louder, it will become more difficult for Trump to pardon Ulbricht.
"I'm not optimistic," Yermack said.
On the crypto gambling site Polymarket, bettors see an 84% chance that Trump will pardon Ulbricht within the first 100 days of his term.
2. Firing Gensler
SEC Chairman Gary Gensler has faced widespread industry backlash for leading a crackdown on the crypto sector, with the regulator filing lawsuits against industry giants like Ripple, Kraken, and Coinbase.
So, when Trump promised last July that he would fire Gensler if re-elected, the crypto industry erupted in cheers.
However, after the election, Gensler voluntarily resigned as SEC chair, taking the decision out of Trump's hands and announcing he would step down on January 20th.
3. Bitcoin National Reserve
Trump has promised to establish a strategic Bitcoin reserve.
He is not the only one to propose this idea. Last July, Republican Senator Cynthia Lummis introduced the "Bitcoin Act of 2024," aiming to establish a reserve holding 200,000 bitcoins, worth around $21 billion at current prices.
After Trump's victory on November 5th, Lummis expressed her excitement on social media, posting: "We're going to establish a strategic Bitcoin reserve."
4. Lowering Interest Rates
Last August, Trump promised that if elected, he would lower interest rates. This would be a boon for Bitcoin, as lower rates typically encourage investors to shift towards riskier assets like stocks and cryptocurrencies.
This is one of the reasons why Bitcoin prices rose after the Federal Reserve cut rates in September and November last year.
However, as an independent institution, the Fed sets interest rate policy independently of the White House, so it remains uncertain whether Trump has the ability to compel the central bank to lower rates.
5. Ending "Operation Choke Point 2.0"
At last year's Bitcoin conference, Trump promised to establish a dedicated Bitcoin and Cryptocurrency Presidential Advisory Council.
"Their mission will be to develop transparent regulatory guidance for the entire industry, and they will complete this within 100 days," Trump said. "We will have the appropriate regulations, but from now on, these rules will be written by people who love your industry, not by people who hate it."
Trump also pledged to "immediately end 'Operation Choke Point 2.0'," a term widely used by crypto industry thought leaders to refer to the Biden administration's alleged pressure on banks to cut ties with crypto clients.
6. Protecting Self-Custody
In the same Bitcoin conference speech, Trump also promised to "always defend the right to self-custody."
The principle of self-custody is that Bitcoin holders can reduce the risks of entrusting their funds to third-party exchanges or custodians by maintaining control of their own private keys.
Crypto industry experts say that regulatory actions against different entities in the industry constitute an attack on the right to self-custody.
7. Mining Bitcoin in the U.S.
After meeting with Bitcoin miners last June, Trump posted on social media that "we want all remaining Bitcoin to be mined here in the United States!!!"
While industry representatives said this proposal offered hope for the struggling mining sector, many questioned how Trump would make this goal a reality.
"What power grids will support this? Who will pay the subsidies to attract these miners?" said Alex de Vries, a data scientist at the Dutch central bank and a long-time critic of Bitcoin mining, in an interview with DL News last June. "Achieving this goal would require a massive amount of taxpayer funding."
8. Rejecting a Digital Dollar
In January 2024, Trump joined many Republican lawmakers and crypto industry experts in publicly opposing the introduction of a U.S. central bank digital currency (CBDC).
"This would pose a grave threat to freedom, and I will stop it from coming to America," Trump said.
"Such a currency would give the federal government absolute control over your money. They could take your money, and you wouldn't even know it."
