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Republican Party Vows to Protect Cryptocurrency in 2024 Platform, Opposes Central Bank Digital Currency

Last Updated July 9, 2024 1:34 PM
Teuta Franjkovic
Last Updated July 9, 2024 1:34 PM
By Teuta Franjkovic
Verified by Insha Zia

Key Takeaways

  • The new Republican Party Platform signals strong support for crypto, aiming to end what it calls the “unlawful and un-American crackdown” on the industry.
  • Trump’s recent positive stance on cryptocurrency significantly shifts from his previous approach.
  • The GOP platform opposes the creation of CBDC and supports the right to mine Bitcoin and self-custody digital assets.

The new Republican Party Platform, influenced by former President Donald Trump’s “Make America Great Again ” vision, vows to stop what it calls the “unlawful and un-American crackdown” on the US cryptocurrency industry.

This is the first time a major US political party has officially addressed the emerging technology in an election-year party platform, signaling a potentially seismic shift in the regulatory framework for the cryptocurrency industry.

New Policy Document Defends BTC Mining, Rejects CBDCs

In a document  released last week, Trump’s campaign team detailed its commitment to end Biden’s anti-crypto crusade by pledging to defend the right to mine Bitcoin and allowing cryptocurrency holders to maintain control over their tokens. 

The Republican Party Platform, in its manifesto, also opposed the creation of a central bank digital currency (CBDC) and asserted a commitment to ensuring transactions are conducted free from government surveillance and control. 

The anti-CBDC stance is a cornerstone of the 2024 campaign trail, with Trump and other Republicans frequently voicing their strong opposition to central bank digital currencies (CBDCs). This stance aligns with broader concerns as other regions, such as China and Europe, explore or implement government-backed digital tokens. 

As per  the document:

“Republicans will end Democrats’ unlawful and un-American crypto crackdown and oppose the creation of a central-bank digital currency. We will defend the right to mine Bitcoin and ensure every American has the right to self-custody of their digital assets and transact free from government surveillance and control.”

While the announcement of the Republican committee’s new platform highlighted 20 top policy priorities without specifically mentioning cryptocurrency, digital assets were still included under its economic innovation initiatives in the broader context of the platform.

It’s clear that Trump’s newfound support for the crypto industry influenced the Republican campaign team’s policy document. 

Donald Trump, “The Crypto President” 

During this election cycle, former President Donald Trump has emerged as the “Crypto President” after openly embracing the asset class and flipping from his previous views. 

The former US President recently launched several branded non-fungible tokens (NFTs)Additionally, the Republican’s presidential campaign and affiliated political action committee have garnered significant support from prominent voices in the crypto industry, including donations from Cameron and Tyler Winklevoss, crypto pioneers and founders of the Gemini exchange, who donated 30.94 Bitcoin, valued at $2 million.

On his social media platform, Truth Social , the former President has also advocated for increased crypto mining in the US. He argued that Bitcoin mining could be America’s last defense against a central-bank digital currency (CBDC), criticizing President Biden’s negative stance towards Bitcoin as beneficial only to China, Russia, and what he termed the radical communist left. Trump emphasized the desire for all remaining Bitcoin mining to occur in the US to bolster the nation’s energy dominance.

House Moves to Override Biden’s Veto Amid Growing Support for Digital Assets

In addition to the Republicans’ efforts to stop the Biden administration’s tirade against the crypto industry, lawmakers nationwide have been stepping up to support pro-crypto legislation.

In May, a significant number of House Democrats supported FIT 21, a regulatory bill favored by the industry, which was seen by many as a sign that these officials do not want to appear anti-crypto to voters.

Additionally, the House of Representatives is set to vote on Wednesday afternoon to override Biden’s veto of the effort to overturn SAB-121, an SEC-led legislation that mandates businesses dealing with crypto to list assets as liabilities. Overriding the veto will require a two-thirds majority in the House, necessitating more Democratic votes than those received by the regulatory bill in June.

Biden Tries to Save Face As Crypto Takes Center Stage in 2024 Elections

President Biden’s approach to cryptocurrencies has been less clear than that of Donald Trump’s overt support. Pantera Capital notes Biden is slowly warming up to the crypto industry.

Although Biden vetoed the overturning of the SAB 121 bill, his administration is working with Congress to develop regulations that promote the responsible expansion of digital assets and innovative payment methods, aiming to strengthen the U.S.’s financial leadership. This balanced approach was evident when Biden chose not to veto the pro-crypto FIT21 Act, which the House passed in mid-May.

Still, there’s no denying the damage Biden’s administration has inflicted on the crypto industry with its stringent crackdown led by SEC Chairman Gary Gensler. The commissioner has been vocal in his opposition to Congress’s efforts to create specialized digital asset regulations, maintaining that most crypto token issuers are in breach of federal securities laws by not complying with SEC oversight. Some of SEC’s ongoing battles include the biggest crypto players such as Kraken, Coinbase, Binance.US, Ripple, Messari, etc. What will come out of these skirmishes remains to be seen.

Bets Are on Trump Winning the Elections

Many crypto enthusiasts are betting that Donald Trump will win the upcoming elections. At press time, Polymarket’s prediction market  on the 2024 US presidential election had amassed $203.3 million in bets across 17 scenarios, featuring individual ‘Yes’ or ‘No’ options.

Donald Trump led as the favorite, with a 62% chance of winning, attracting $24.7 million in bets. Joe Biden, the incumbent President, followed closely with $23.9 million wagered on his victory. His odds, however, have fallen from 34% to 21% following a lackluster performance in the first presidential debate on June 28, 2024. Meanwhile, Gavin Newsom, Kamala Harris, and Michelle Obama saw their odds rise as political analysts debated whether Biden should continue his candidacy.

BTC to Hit $100K by November as Crypto Becomes Key Issue in US Presidential Election

Experts speculate that cryptocurrency could be a significant issue in this year’s elections. According to Standard Chartered, Bitcoin could reach a new all-time high by August and surge to $100,000  by the US presidential election in November. This optimistic outlook hinges on President Biden remaining in the race, a scenario viewed by the market as beneficial for Donald Trump’s chances of victory.

Katie Biber, chief legal officer at the crypto investment firm Paradigm, stated on X  that history has been made with crypto being included in the official GOP platform.

https://twitter.com/katiebiber/status/1810373186191765560

Nic Carter, general partner at Castle Island Ventures, another well-known crypto investment firm, expressed  on X his satisfaction with the language used in the document, noting that it met all his expectations.

https://twitter.com/nic__carter/status/1810378813089718518

The cryptocurrency prediction market, Polymarket, indicates that the likelihood of Biden withdrawing  from the presidential race dropped to 36% following the publication of an open letter in which he confirmed his continued candidacy.

The White House issued a statement  from President Biden’s physician on July 8, following press secretary Karine Jean-Pierre’s persistent inquiries during the day regarding Mr. Biden’s health. The inquiries were specifically about whether visits from a Parkinson’s disease specialist to the White House were related to the President. The doctor confirmed that President Biden is not currently being treated for Parkinson’s disease.

 

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