Donald Trump’s Stance on Crypto, AI, and Cybersecurity Explained

• In his second term, Donald Trump promises to change the direction of American policy on crypto, AI, and cybersecurity.
• Trump’s stance on AI is centered on securing U.S. leadership against Chinese competition.
• He will also appoint pro-crypto candidates to government roles.

With less than a month to go until Donald Trump’s inauguration, an image of how the incoming administration will approach technology is coming into view.

The coming wave of Trumpism is expected to take a hard pivot from the policy goals of the Biden era, with the new president forging a different path on crypto, Artificial Intelligence, and cybersecurity.

Crypto Markets Boosted by Trump Victory

As crucial swing state vote counts came in on election night, crypto markets surged in anticipation of a Trump victory, kickstarting a rally that has seen Bitcoin hit successive new all-time highs.

The market’s reaction is as much of a repudiation of the last four years of U.S. crypto policy as it is an endorsement of Trump’s stance on the issue.

Trump’s picks for Treasury Secretary and Chair of the Securities and Exchange Commission (SEC) are expected to create a more favorable regulatory environment for the American crypto industry.

In his career as a fund manager, Trump’s candidate for Treasury Secretary, Scott Bessent, has often advocated for blockchain and digital assets.

Industry insiders have widely celebrated Bessent’s appointment to Trump’s cabinet. For instance, in a recent post on X, Ripple CEO Brad Garlinghouse referred to Bessent as “the perfect pick ” for the role.

“He will be the most pro-innovation, pro-crypto Treasury Sec we’ve ever seen.”

To lead the SEC, Trump is expected to nominate the former Republican Commissioner Paul Atkins.

After four years of antagonism with Chairman Gary Gensler, the crypto industry would likely have welcomed almost anyone else to fill the role. Nonetheless, Atkins’ embrace of free market policies has generally been received positively.

Trump will also appoint PayPal co-founder and former COO David Sacks as the White House’s first crypto and AI czar. Tasked with overseeing federal policy on digital assets and AI, Sacks’ appointment signals Trump’s continued support for pro-crypto and pro-innovation policies.

Maintaining American AI Leadership

Announcing Sacks’ new role, Trump described  AI as being “critical to the future of American competitiveness.”

As well as bringing Silicon Valley big shots into government, Trump has also outlined specific policy initiatives he will pursue to foster American AI innovation.

These include a commitment to revoking President Biden’s Executive Order on AI and accelerating fossil fuel and nuclear-powered electricity generation.

“For AI,” Trump observed  earlier this year, “you’ll need to double the energy that we produce right now just for that one industry if we’re going to be the big player and dominant.” If the U.S. doesn’t secure its AI leadership, “then China’s going to take over,” he warned.

Ahead of the election, Trump’s allies reportedly  drafted an executive order that outlines a series of “Manhattan Projects” to advance military AI capabilities.

The document calls for an immediate review of what it terms “unnecessary and burdensome regulations” and would encourage the government to coordinate with American AI firms on defense.

Trump’s Cybersecurity Record

Although it featured less prominently during the campaign, Trump has also taken an aggressive position on cybersecurity.

During his first term, he signed an act that created the Cybersecurity and Infrastructure Security Agency (CISA).

Trump also issued an Executive Order  aimed at strengthening the nation’s cybersecurity, with a focus on federal agencies and critical infrastructure. However, in the aftermath of the 2020 election, he fired  the agency director he appointed for declaring that the election was secure.

In recent years, House Republicans have taken an increasingly critical view on CISA’s work to counter the spread of disinformation, which they argue  has crossed the line into censorship.

While Trump himself hasn’t spoken out on the matter, curbing the agency’s influence on online speech would certainly align with Trump’s rhetoric on social media moderation.

Finally, Trump’s tough stance on China could prompt an aggressive response to Chinese attacks on American infrastructure. In this area, the next president will likely find bipartisan support for updating U.S. national security frameworks to adapt to new and emerging threats.