Trump: The Crypto Destroyer?
How the Trump Era Led to a Bearish Crypto Market
Since Donald Trump re-entered the political scene and announced his candidacy for the U.S. presidency, the crypto market has faced immense pressure. Many now refer to Trump as the “crypto destroyer” due to his anti-crypto stance and policies. The bearish trend that occurred during his previous administration seems to be repeating, raising concerns among investors about the industry’s future.
Trump’s Anti-Crypto Policies
Donald Trump has never been a fan of digital assets. He has openly stated multiple times that he is “not a fan of Bitcoin and other cryptocurrencies,” arguing that they are used for illegal activities and lack intrinsic value.
Several key policies from his administration contributed to the decline of crypto markets:
1. Strict Regulatory Pressure
• During his presidency, the SEC (Securities and Exchange Commission) aggressively pursued crypto projects, including lawsuits against ICOs (Initial Coin Offerings) deemed illegal.
• The FinCEN (Financial Crimes Enforcement Network) increased surveillance on crypto transactions, making adoption and innovation in the sector more difficult.
2. The Libra (Now Diem) Shutdown
• When Facebook attempted to launch its stablecoin project, Libra, the Trump administration quickly cracked down on it, ultimately forcing the project to shut down. This demonstrated his opposition to digital assets that could compete with the U.S. dollar.
3. Bitcoin ETF Rejections
• Under Trump’s administration, the SEC consistently rejected multiple Bitcoin ETF proposals, delaying Bitcoin’s acceptance in traditional financial markets.
4. Strict Tax and Reporting Requirements
• The IRS (Internal Revenue Service) tightened tax regulations for crypto holders, introducing stricter reporting rules that made it harder for investors to navigate the crypto space.