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How does Trump's Bitcoin policy make the United States a global crypto hub?
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Trump is overhauling cryptocurrency regulation, updating tax policy, and embarking on a national Bitcoin reserve strategy, putting the U.S. on a path to become the first G7 economy to fully embrace cryptocurrency.
Small countries like El Salvador have attracted Bitcoin businesses by building strategic Bitcoin reserves and crypto-friendly policies. The International Monetary Fund recently restricted El Salvador's future Bitcoin purchases, but it has accumulated about 6,101 Bitcoins as a strategic reserve. Tether, one of the world's most profitable crypto companies, has also reportedly moved its headquarters to El Salvador. Similar to Salvadoran President Bukele, Trump appealed to voters in the crypto space during his 2024 campaign. He made a striking promise to an enthusiastic crypto crowd at the Nashville Bitcoin Conference last July.
While Trump’s erratic tariff policies have caused market chaos, his crypto-friendly policies have helped Bitcoin prices avoid falling below the previous cycle’s high of around $73,000. The relative stability of cryptocurrency prices may be partly due to the U.S. government’s new, softer regulatory stance.
Trump has made no secret of his reasons for clearing the way for the crypto industry, aiming to bring high-paying jobs and crypto mining dominance to the United States. According to the Cambridge Bitcoin Electricity Consumption Index, the most powerful crypto mining companies in 2022 were from China or Russia. Since then, dozens of companies have moved to Texas, but the shift has stalled under the Biden administration. Now, Trump's second term coincides with the crypto market's four-year bull cycle; Bitcoin prices have risen nearly 30% since Trump's victory six months ago.
Bipartisan efforts to ease regulations and build a strategic reserve of crypto assets appear to be shielding the cryptocurrency market from the turmoil on Wall Street. Bitcoin's current price action is more stable than that of the U.S. stock market. The current halving cycle may end in early 2026, and the Trump administration's policies may further affect the Bitcoin market. This includes the normalization of conflicts of interest. The Trump family is now actively involved in crypto businesses, as well as reallocating law enforcement resources and pardoning Bitcoin "old men" such as Silk Road founder Ross Ulbricht and BitMEX exchange founders Arthur Hayes, Benjamin Delo, Samuel Reed and Gregory Dwyer. Going forward, there may be fewer legal risks in doing crypto business in the United States.
