Trump's Digital Economy Blitz in First 100 Days
Altered Cryptocurrency Market through His Actions
Donald Trump's first 100 days as the U.S. President brought a flurry of moves in the digital finance world, accentuating efficiency, security, and innovation. Let's take a closer look at the key events that shook up the crypto market during this period.
Crypto Market Downturn Strikes Early
Trump's inauguration on January 20 marked the beginning of a significant sell-off in the crypto market, with Bitcoin (BTC) peaking at around $110,000 before losing around 13% of its value by April 30 at 9:00 AM Moscow time. Ethereum (ETH), the second-largest cryptocurrency, dropped by around 48%, reaching approximately $1,800. The total market capitalization of the crypto market plummeted to $2.97 trillion, a decline of more than 15%, according to Coinmarketcap.
Interestingly, Bitcoin experienced a opposite trend during the initial 100 days of the Biden administration, surging by over 50% despite skepticism from the crypto community regarding Biden's potential hard-line stance on cryptocurrency regulation.
Building the U.S. Bitcoin Reserve: Trump's Signature Move
The most notable initiative from Trump came in the form of an executive order signed in early March. This order aimed to create a state-sponsored Bitcoin reserve in the U.S., with a strategy for further accumulation without additional taxpayer expenses [1]. While official details remain scarce, data from Arkham suggests that the U.S. government might already hold around 200,000 BTC, equivalent to roughly $18.7 billion at the time of Trump's departure from office [1].
Pro-Crypto Officials Ascend: The New Administration Takes Shape
Another key change under Trump was the appointment of pro-cryptocurrency officials to crucial positions within the administration. For example, Howard Lutnick, previously the head of Cantor Fitzgerald, which manages the reserves of the largest stablecoin, USDT, from issuer Tether, was appointed as the U.S. Secretary of Commerce [1].
Gary Gensler, a known crypto supporter, took over as the head of the Securities and Exchange Commission (SEC) – the primary regulatory body for the crypto market [1]. To top it off, Trump assigned David Sacks, the former CEO of PayPal and head of venture capital firm Craft Ventures, as the new AI and cryptocurrency "Czar" [1]. Sacks' venture capital firm invests in various crypto projects, including BitGo, Bitwise, dYdX, Lightning Labs (developer of the Lightning Network), River Financial, and Lumina.
Legislative Posturing: The SEC Takes the Lead
During Trump's tenure, there were no significant changes in crypto market legislation. However, the SEC revoked Rule SAB 121, which previously limited banks' ability to provide clients with crypto storage services [1]. Additionally, since February, the SEC halted investigations and probes started under former chairman Jay Clayton, either unilaterally or in cooperation with crypto companies.
A Dogecoin-Inspired Agency: DOGE Brings Efficiency to Government
As a final nod to the digital finance revolution, Trump established the Department of Government Efficiency (DOGE) through an executive order. This federal agency was designed to streamline government operations, with billionaire Elon Musk, a vocal supporter of memecoin Dogecoin and Bitcoin, serving as its primary overseer [1].
Pardoning the Past: Ross Ulbricht's Silk Road Redemption
One of the more noteworthy events during Trump's first 100 days was the pardon of Ross Ulbricht, the founder of the darknet marketplace Silk Road. Launched in February 2011, Ulbricht's platform allowed users to anonymously buy and sell illicit goods using Bitcoin as payment. In 2013, the FBI, DEA, and IRS collaborated to shut down Silk Road and arrest Ulbricht, who was subsequently charged with drug trafficking, money laundering, and creating a criminal enterprise. In 2015, Ulbricht received two life sentences and an additional 40 years in prison for his role in running the Silk Road marketplace.
Trump's Crypto Ventures: From Politics to Memecoins and Beyond
Trump made a splash in the crypto world with the launch of his family's official memecoins, OFFICIAL TRUMP (TRUMP) and Official Melania Meme (MELANIA), ahead of his inauguration. These tokens found themselves in the top 100 cryptocurrencies by market capitalization and were listed on various major crypto exchanges. However, their fortunes quickly soured, with TRUMP's market cap dropping 83% from its peak to $13 and MELANIA's collapsing 97% to $0.4 by April 30 [1].
Trump's digital footprint extended to other crypto-related initiatives as well. For instance, his media company launched the fintech platform Truth.Fi and invested $250 million, including cryptocurrency and derivatives, during this timeframe [1]. The company also partnered with Crypto.com to launch derivative products under the Truth.Fi brand, and filed for trademarks related to Bitcoin-based ETFs.
In another move, Trump's media company announced plans for a USD1 stablecoin on the Ethereum and Binance Smart Chain blockchains for World Liberty Financial (WLF) – a multifaceted platform that allows users to lend and borrow cryptocurrencies, create liquidity pools, and engage in stablecoin transactions [1].
In conclusion, Trump's first 100 days in office brought significant change to the digital financial landscape, with eventful reshuffling within the administration, bold initiatives such as the Bitcoin reserve, and the emergence of pro-crypto figures in key positions. Despite initial market setbacks, the move towards digital finance appears to be irreversible under the new administration.
[1] - Based on analysis from rbcracing.com and other credible sources.
- Cryptocurrencies such as Bitcoin and Ethereum experienced a significant downturn at the beginning of Trump's Presidency, with losses of around 13% and 48% respectively, and a total market capitalization plummeting to $2.97 trillion.
- In a significant move, Trump signed an executive order to create a state-sponsored Bitcoin reserve, with speculations mentioning the U.S. government potentially holding around 200,000 BTC.
- During Trump's tenure, pro-cryptocurrency figures were appointed to key positions in his administration, such as Gary Gensler as the head of the Securities and Exchange Commission (SEC) and David Sacks as the new AI and cryptocurrency "Czar".
- The SEC, led by Gensler, took a more lenient stance towards banks providing crypto storage services, revoking Rule SAB 121 and halting investigations started under former chairman Jay Clayton.
- In an unusual twist, Trump establishment a Department of Government Efficiency (DOGE) for streamlining government operations, with Elon Musk, a vocal supporter of Dogecoin and Bitcoin, appointed as its primary overseer.
