The Republican Party has reinforced its support for Bitcoin by backing Americans’ right to own and mine the cryptocurrency. According to the 2024 GOP platform draft, the party is committed to making America a global hub for crypto. They plan to end the Democrats’ crackdown on crypto, which they label as “unlawful and unAmerican.” The GOP promises to ensure that every American has the right to self-custody their digital assets, emphasizing that they do not intend to control or surveil citizens’ finances.
With the presidential election approaching, the crypto community is hopeful for a bipartisan crypto policy. Many traders and analysts believe a victory for Donald Trump could pull Bitcoin out of its current slump, with expectations of Bitcoin reaching new all-time highs if Trump wins. Trump has presented himself as a pro-crypto candidate, making bold promises such as mining the remaining Bitcoins in America if elected.
Trump has actively supported the crypto industry, hosting Bitcoin miners at Mar-a-Lago, accepting crypto for campaign donations, and associating with industry elites. This has led to expectations that a strong Republican presence in Congress would lead to clear and favorable crypto policies.
However, some of Trump’s policies, like tougher immigration criteria, more tariffs on foreign goods, and tax cuts, could increase the deficit and spike inflation and Treasury yields. Standard Chartered believes these policies could create a “fiscal dominance,” where the deficit and debt grow so large that the Federal Reserve becomes powerless against inflation. This scenario could benefit Bitcoin, seen as a hedge against inflation similar to gold. Analysts from Standard Chartered noted, “A steeper curve and higher break-even rates than real yields should push Bitcoin’s price higher, as the cryptocurrency serves as a hedge against declining confidence in the U.S. Treasury market.”
The GOP also criticized President Biden’s executive order on artificial intelligence, accusing him of wanting to “impose left-wing ideas on technology development.” They promise to repeal this order and support AI development for the benefit of free speech and human flourishing.