Trump Pledges to Fire Gensler, Pick Regulators Who ‘Love’ Crypto

(Bloomberg) — Donald Trump said he would fire the head of the Securities and Exchange Commission and replace it with crypto-friendly regulators if he returns to the White House, aiming to appeal to virtual currency enthusiasts and contain the industry’s growing influence in the political arena.

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“This afternoon, I’m laying out my plan to make the United States the crypto capital of the planet and the Bitcoin superpower of the world, and we will do it,” Trump said at the Bitcoin Conference in Nashville on Saturday.

Trump has said he will fire SEC Chairman Gary Gensler, whose term does not run until 2026. If Trump wins the presidency, he will have significant influence over top regulators for the growing industry.

“We will have regulations, but from now on, the rules will be written by people who love your industry, not by people who hate your industry,” Trump said.

He also pledged to create a presidential advisory board for the cryptocurrency industry, create a stablecoin framework and called for reduced sanctions.

Tone Shift

These statements are the latest indication of how the former president has embraced technology and sought to position himself as a defender of crypto interests.

Trump expressed skepticism about cryptocurrencies while in office, claiming he was “not a fan” and that their value was “not based on anything,” but he reversed his views in his 2024 presidential campaign, increasingly promoting Bitcoin and actively trying to influence the crypto industry.

The shift is reflected in part by the sector’s growing prominence on the U.S. political scene, as executives push to get candidates with policies supporting digital assets into office through larger donations, as well as Trump’s desire to reach out to new voters in his third bid for the presidency, through his Fairshake super political action committee.

Republican Sen. Cynthia Lummis of Wyoming, who attended the Nashville conference, said she plans to introduce a bill that would require the government to create a stockpile of up to 1 million bitcoins over five years. The bill would require the government to hold the cryptocurrency for 20 years, during which it could only be used to reduce the national debt.

“The goal is to recognize the fact that Bitcoin is a durable asset,” he said on the sidelines of the conference. “It is digital gold and it is a hard asset that can back the US dollar and provide assurance around the world that the US dollar continues to be worthy of being the world currency.”

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Bitcoin, which rose as much as 2.9 percent before Trump’s speech on Saturday, was little changed around $68,000 by the end of the speech.

Political Power

According to OpenSecrets, crypto industry donors have invested more money in the 2024 elections than in all previous election cycles combined.

Trump’s economic agenda, which promises to lower taxes and curb government regulations, has found a positive response in Wall Street and business circles seeking alternatives to the policies of President Joe Biden and Vice President Kamala Harris, the presumptive Democratic nominee.

The crypto industry has railed against what it sees as heavy regulation under the Biden administration following the collapse of the FTX exchange and other scandals. Trump has vowed to encourage bitcoin mining in the U.S., protect the right of cryptocurrencies to self-custody and block the Federal Reserve from issuing a central bank digital currency that would compete with the industry.

Trump’s appearance at the conference comes during a frenzied stretch of the 2024 race that has seen a failed assassination attempt on the Republican former president and Biden’s announcement on Sunday that he will no longer seek re-election. The Democratic incumbent has endorsed Harris, 59, who is nearly two decades younger than Trump, threatening to undermine the progress he has made among young voters and people of color.

Trump discussed cryptocurrency policy with Tesla Inc. CEO Elon Musk, according to a person familiar with the talks. He also hosted crypto mining executives at his Mar-a-Lago resort and promised to commute the sentence of Ross Ulbricht, who is serving a life sentence for running the Silk Road marketplace where customers used virtual currencies to buy illegal drugs and hacker tools.

Most notably, Trump’s campaign said in May it would begin accepting donations in digital assets. Since then, it has raised $4 million from a mix of digital tokens, according to a campaign aide who detailed the amount on the condition of anonymity.

Trump’s top donors include billionaire twins Cameron and Tyler Winklevoss, who run Winklevoss Capital Management and have invested heavily in Bitcoin. Both said they donated the equivalent of $1 million of the cryptocurrency to a pro-Trump group, exceeding the maximum allowed. The excess amounts were returned to the brothers.

Trump was set to meet with crypto industry donors on Saturday at a fundraiser where seats are up for grabs for as much as $844,600. Guests are expected to include the Republican running mate, Ohio Sen. J.D. Vance, who has taken an interest in cryptocurrency and positioned himself as a supporter of the industry.

–With assistance from Bill Allison.

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