Bitcoin Hits Record Peak After Trump’s Commitment to Stop Cryptocurrency Crackdown

Bitcoin Hits Record Peak After Trump's Commitment to Stop Cryptocurrency Crackdown

Bitcoin Hits Record Peak After Trump’s Commitment to Stop Cryptocurrency Crackdown


# Trump to Revamp the SEC with Pro-Crypto Leadership

In a significant development that has reverberated through the financial and crypto sectors, Donald Trump has unveiled his intentions to transform the Securities and Exchange Commission (SEC) by appointing pro-crypto leaders. This announcement coincided with Bitcoin reaching an all-time high of $89,623, driven by investor confidence that Trump’s anticipated comeback to the presidency may signify the conclusion of the regulatory assault on cryptocurrencies that has escalated in recent years.

## Bitcoin’s Rise and Market Responses

Bitcoin’s dramatic increase in value is perceived as a direct reaction to Trump’s electoral win and his pro-crypto narratives. Even though the trading boom has briefly slowed down, experts forecast that Bitcoin’s price may continue to ascend, possibly hitting $100,000 by the close of 2024, as reported by CNBC.

Bitcoin was not alone in reaping the rewards the day after the election; Dogecoin, linked closely to Elon Musk—an advocate for Trump and speculated to be a possible member of his administration—experienced a 135% uptick in value post-election. Additionally, cryptocurrency platforms like Coinbase enjoyed substantial market advances.

Trump has expressed his ambition to establish the United States as the “crypto capital of the world,” according to a report from *Fortune*. On the campaign trail, he pledged to dismiss SEC Chair Gary Gensler, who has been at the forefront of combating crypto-related fraud and irregularities. Furthermore, Trump has initiated his own cryptocurrency platform, World Liberty Financial (WLFI), further demonstrating his dedication to the sector.

## The SEC and Trump’s Crypto Vision

While Trump has promised to oust Gensler on the “first day” of his presidency, legal analysts caution that removing the SEC chair might provoke a complex legal confrontation. *The Washington Post* indicates that Trump may opt to demote Gensler since fully removing him could instigate a novel legal issue regarding the president’s power to dismiss independent regulatory officials.

Insiders familiar with Trump’s strategies report that he is contemplating a blend of current regulators, ex-federal officials, and financial industry leaders for pivotal leadership roles at the SEC. Many of these candidates have openly championed pro-crypto viewpoints. Names mentioned as potential replacements for Gensler include Daniel Gallagher, a past SEC official now serving as Chief Legal Officer for Robinhood, along with Republican SEC commissioners Hester Peirce and Mark Uyeda. Additional prospective candidates encompass former SEC commissioner Paul Atkins and ex-Commodity Futures Trading Commission (CFTC) commissioner Chris Giancarlo.

## The Future of Bitcoin Regulation

Under Gensler’s stewardship, the SEC has intensified its enforcement activities against the crypto sector, targeting fraudulent schemes and unregistered securities. In early 2024, the SEC sanctioned spot-Bitcoin exchange-traded funds (ETFs), which bolstered Bitcoin to its prior record high of $69,000. Nonetheless, Gensler has persistently cautioned that Bitcoin is a “volatile asset” associated with illegal actions such as ransomware, money laundering, and terrorist funding.

Trump’s pro-crypto position has led numerous analysts to conjecture that his administration might either elucidate existing regulations or ease regulatory oversight, potentially tempering market volatility. Some even propose that Trump might advocate utilizing Bitcoin to eliminate the U.S. national debt, which recently exceeded $34 trillion. During his campaign, Trump allegedly remarked, “We’ll hand them a little Bitcoin and wipe out our $35 trillion,” as noted by *Forbes*.

Mauvis Ledford, CEO of Sogni AI, a tech startup based in Singapore, shared with *Al Jazeera* that Trump could instigate programs to accelerate widespread cryptocurrency adoption, possibly with Elon Musk as an advisor. If these initiatives prove successful, they could stimulate economic progress and advance innovations in blockchain technologies, potentially yielding a clearer and steadier regulatory landscape for the crypto market.

## Trump’s Evolving Views on Cryptocurrency

Trump’s newfound interest in cryptocurrencies signifies a notable transformation from his previous perspective. In 2019, he was openly critical of Bitcoin and other digital currencies, asserting that they were “not money” and founded on “thin air.” He furthermore cautioned that unregulated crypto assets could enable illegal activities like drug trafficking.

Nevertheless, in recent months, Trump has become more receptive to cryptocurrencies, reportedly influenced by his sons, Eric and Don Jr. During a September 2024 conversation on X (formerly Twitter), Trump disclosed that his youngest son, Barron, had been named Chief DeFi Visionary for WLFI at just 18 years old, according to *Forbes*. This abrupt change in stance has raised ethical red flags, particularly as Trump gears up to return to the White House while possessing a significant financial interest in the crypto field.

## Ethical Issues and Potential Conflicts of Interest

Trump’s engagement in the crypto sector, especially through WLFI, has ignited concerns regarding potential conflicts of interest. *Forbes* raised questions