Donald Trump shifts his stance on Bitcoin

Formerly critical of Bitcoin, Donald Trump has softened his stance on cryptocurrencies and now advocates for their regulation

By Shashank Bhardwaj

Published: Feb 26, 2024 06:59:39 PM IST

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Former US president and Republican frontrunner Donald Trump has shifted his stance on Bitcoin (BTC).

In 2019, during his presidency, Trump tweeted his disapproval of cryptocurrencies, stating that he was "not a fan" and dismissing them as "not money." Furthermore, Trump has been critical of central bank digital currencies (CBDCs), labeled them as risky, and pledged not to authorise their implementation if elected.

But now, Trump’s stance on Bitcoin has undergone a shift. He remarked that Bitcoin has gained considerable momentum and may require some level of regulation.

Speaking on Fox News during a town hall event in South Carolina, Trump addressed a question posed by Fox News anchor Laura Ingraham regarding the potential adoption of Bitcoin in the U.S. "Bitcoin has taken on a life of its own," Trump stated, acknowledging the growing retail and institutional interest in the cryptocurrency.

He suggested that crypto regulation may be necessary and noted that many people are embracing Bitcoin, with an increasing number showing interest in using it for transactions.

On that note, cryptocurrencies are becoming impossible to overlook in the United States in terms of regulation. With the SEC’s (Securities and Exchange Commission) recent approval of spot Bitcoin ETFs and the FASB’s (Financial Accounting Standards Board) upgrade on accounting standards stating US-based public companies can now account for their crypto holdings at fair value, there has been a notable surge in institutional interest. The crypto landscape in the US is rapidly evolving, to say the least.

The aforementioned Bitcoin spot ETFs have recorded historical performance since they started trading. What’s more, the USA, as essentially the heart of the world of finance, has prompted other countries and regions to start taking Bitcoin spot ETFs into consideration. Hong Kong is among the first to receive applications for such instruments.

Against this backdrop, Trump's evolving stance on cryptocurrencies mirrors the shifting mainstream sentiment towards digital assets.