The much-hyped Trump crypto summit turned out to be a textbook PR exercise — big on optics, light on substance. Some hailed the summit as a turning point, but in reality we are still waiting and watching. We knew it, yes, the move represents a departure from previous administration’s hostility towards crypto.
The US government is not buying your bags — nor should it — but it’s also not buying someone else’s bags — maybe a positive outcome? Net Net, to quote Impossible Cloud Network’s co-founder Kai Warwzinek: “While promising great change for crypto, the US president delivered almost nothing.”
Prices fell dramatically as a result. Avi Feldman from the 1000x Podcast and Jonah Van Bourg described the session in real-time as an opportunity. “obsequious fawning” Attendees rotated in turns “kissing the ring” The President of the United States, Donald Trump
The partisan embrace of crypto by the US government should raise a warning for those who hope that the political landscape in the US will fundamentally change over time. There may be tangible progress stemming from Trump’s rhetorical shift, including an apparent end to Chokepoint 2.0, a friendlier stance toward stablecoins, a vague nod to crypto at the Small Business Administration — this is all welcome. If the president uses this opportunity to try to make crypto an issue for Republicans, then the relief may be brief.
If Democrats take power again, they can reverse most things just as fast if there is no real progress on legislation in the coming two years. This is exactly what will happen, given that the crypto discourse has a leftist slant.
It’s not clear to the left what crypto can do for them or how it will benefit society. Rachel Maddow compares Bitcoin with Beanie Babies. Zeke Faux insisting that cryptocurrency is an offshore gambling casino.
Why the Democratic establishment bought the Elizabeth Warren narrative, that crypto was more or less a tool used by criminals and tax evaders is always baffling. Progressives should be able to relate with the cypherpunk mindset and the expectation that crypto will disintermediate big tech and banks for the benefit of the public. As long as this framing is dominant, any promises Trump may make can be undone with a stroke of the pen.
The 119th Congress will have approximately 18 months in which to complement executive regulation and provide legal clarity. Crypto as an industry has roughly the same timeframe to prove its clear and unambiguous role in American economics. Crypto will be politically unstable without it.
All hat, no cattle — or was it?
There were positives at the summit. Stablecoins being endorsed as a means to promote the US Dollar is a pragmatic move, and it’s generally agreed that stablecoins represent crypto’s most promising future. “killer app” Calling card
Revisiting IRS treatment of crypto could prove fruitful — something as simple as a de minimis exemption on crypto transactions that shield small payments from capital gains tax would remove a major friction point.
In parallel, Texas’ passage of Senate Bill 21 last week — allowing the state to establish its own bitcoin reserve — is an example of how states can move forward even if Washington dithers, according to Harrison Seletsky, director of business development at SPACE ID.
“A year ago, none of us could have dreamed of this,” Seletsky suggested Blockworks to Blockworks “Texas’ move could open the floodgates for other states to follow suit.”
Trump’s own sarcastic rebuttal of this idea was on display at the end of last week.
“‘Never sell your Bitcoin’ is a little phrase that they say. I don’t know if they’re right or not — who the hell knows?” Not exactly a ringing endorsement, but well in line with the notion that his support — like much of his chaotic policymaking — is transactional in nature. In this instance, it’s a reaction to the US broken campaign finance system.
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