Trump’s First Term: Crypto Skepticism and Regulatory Actions
Donald Trump’s first term as U.S. president, spanning from 2017 to 2021, marked a contentious chapter for cryptocurrency. While Bitcoin’s value skyrocketed from around $700 at his election to over $36,000 by the end of his tenure, the administration’s stance on digital assets was largely critical, characterized by regulatory crackdowns and dismissive rhetoric.
Trump’s first public acknowledgment of cryptocurrency came in 2019 via a tweet in which he declared himself “not a fan” of Bitcoin, criticizing it and other cryptocurrencies as being “based on thin air.” Although negative, the statement was historic as it marked the first time a sitting U.S. president directly addressed the burgeoning technology, thrusting it into the global spotlight.
Behind the scenes, Trump’s administration reportedly harbored concerns about cryptocurrency’s implications for financial stability. According to former National Security Advisor John Bolton’s memoir, Trump instructed then-Treasury Secretary Steven Mnuchin in 2018 to “go after Bitcoin.” Regulatory actions followed suit. Under Securities and Exchange Commission Chair Jay Clayton, the SEC filed 62 enforcement actions against crypto-related entities, targeting major players like Ripple Labs and Block.one. These measures underscored the administration’s focus on enforcement rather than fostering innovation.
Despite this stance, Trump’s relationship with crypto took an unexpected turn after leaving office. In December 2022, he launched a line of non-fungible token (NFT) digital trading cards, showcasing a willingness to engage with certain aspects of the technology. This move surprised many in the industry, given his prior criticisms.
One unresolved issue from Trump’s first term was the potential pardon of Ross Ulbricht, the founder of the darknet marketplace Silk Road. Although reports in 2020 suggested Trump was sympathetic to Ulbricht’s case, he ultimately refrained from granting a pardon. Ulbricht’s case has since become a focal point in Trump’s 2024 campaign, with the former president pledging to commute the sentence “on day one” of his second term.
As Trump prepares to begin his second term, industry insiders anticipate a potentially different approach to digital assets. With crypto markets more mature and institutional adoption on the rise, the administration may need to strike a balance between regulatory oversight and fostering innovation in the rapidly evolving sector.