The United States Securities and Exchange Commission (SEC) has had an aggressive stance against the crypto industry; facing the ire of many including top leaders of the niche domain. On July 27, as former president Donald Trump will address the crypto community at Bitcoin 2024 Nashville event, chances are high that he might launch a scathing attack on SEC chair Gary Gensler, who is backed by president Joe Biden.
The three day Bitcoin 2024 Nashville event, which will see a congregation of who’s who from the crypto industry, will serve as the perfect platform for Trump to target the Biden administration and SEC, for their alleged harsh stance against crypto exchanges, firms and businesses in the United States. With less than four months to go for U.S. presidential elections, the opportunity is ripe for 78-year-old Trump to capitalize on popular sentiment against the federal agency that is increasingly facing allegations of being “anti-crypto”.
In the wake of a recent assassination attempt on him, Trump’s popularity has soared amid the crypto circles in the U.S. with Bitcoin prices witnessing surges just hours after the shooting at a Pennsylvania rally.
If Trump indeed secures a win in the coming elections in November, analysts predict that Gary Gensler will soon lose his chair to an official backed by Trump’s friends in the crypto domain.
In that context, all eyes are now on the Nashville Bitcoin conference, where crypto lovers await the historic speech by Trump. There are speculations that Trump might also announce setting up of a “bitcoin strategic reserve” if elected to power.
SEC’s Ongoing Tussle With Crypto Space
The SEC’s aggressive stance against the crypto industry has been evident to all. Over the past few years, the SEC has relentlessly hunted crypto innovations and businesses through legal action and enforcement.
Since its creation in 2013 to July, 2024, the U.S. Securities and Exchange Commission (SEC) has brought a total of 137 enforcement actions against cryptocurrency firms. Its first crypto related action was against Trendon T. Shavers and his company, Bitcoin Savings and Trust (BTCST), for operating an alleged Ponzi scheme.
In the last two years, the SEC sued several major crypto exchanges, including Binance, Coinbase, Ripple, Kraken, and so on. The majority of these cases include common charges like selling unregistered securities and violating federal laws.
While the SEC considers most cryptocurrencies as securities except Bitcoin, yet, there’s no clear regulatory framework available for crypto businesses to comply.
Furthermore, the SEC’s case of Ethereum and ConsenSys revolved around whether Ethereum’s 2014 ICO constituted an unregistered securities offering. However, Here’s a third-party version:
The company tweeted that the EC has notified them of the closure of its investigation into Ethereum 2.0, adding that the SEC will not bring charges alleging ETH sales as securities transactions.
However, one crucial judgment raised many questions about the SEC’s law and enforcement actions. On July 13, 2023, U.S. District Judge Analisa Torres of the Southern District of New York ruled that Ripple Labs’ token, XRP, qualifies as a security when sold to institutional investors but is not considered a security when sold to retail investors via digital asset exchanges or used for service providers.
Trump is Grinding Hard To Woo Crypto Voters?
Donald Trump is actively working to woo crypto voters as part of his 2024 presidential campaign. This includes his upcoming participation as a speaker at the Bitcoin 2024 conference in Nashville, which is expected to attract over 20,000 attendees. His appearance highlights his pro-crypto stance, aiming to raise support from the crypto community.
In addition to attending major crypto events, Trump’s campaign has begun accepting donations in various cryptocurrencies, including Bitcoin, Ethereum, and Dogecoin. This move is part of a broader strategy to build a “crypto army” of supporters and marks the first time a major party presidential nominee has embraced cryptocurrency for campaign donations.
Trump May Create Strategic Bitcoin Reserve
Recent reports suggest that former President Donald Trump may announce plans to make Bitcoin a strategic reserve for the United States if he wins the 2024 presidential election.
This discussion was sparked by Dennis Porter, CEO of the Satoshi Action Fund, who hinted at this potential announcement during the upcoming Bitcoin 2024 conference in Nashville. Porter is quite confident about this announcement and indicated that his sources are credible. However, there is no official confirmation from Trump’s campaign team yet.
David Bailey, a conference organizer, stated that Trump’s speech at the Bitcoin 2024 conference in Nashville will be “the most consequential political event in Bitcoin’s history and a defining cultural moment for our society.”
The plan involves using the U.S. Treasury’s Exchange Stabilization Fund (ESF) to integrate Bitcoin into the country’s strategic reserves. This is similar to how the ESF currently holds foreign currencies and gold.
The goal would be to diversify the ESF’s assets and provide a hedge against inflation and currency devaluation. The proposal also suggests stopping the auction of seized Bitcoin by the U.S. Marshals and transferring these holdings, valued at approximately $5.5 billion, into the ESF.
Not just BTC reserve, there have been discussions about using Bitcoin to address the U.S. national debt.
Would Gary Gensler Lose His Chair if Trump Wins?
Long story short, the removal of Gary Gensler would not be that easy. Under the current legal framework, the president cannot directly remove the SEC chairman without cause.
According to the Securities Exchange Act of 1934 and subsequent court rulings, an SEC commissioner, including the chairman, can only be removed by the president for inefficiency, neglect of duty, or malfeasance in office.
However, the Trump administration might attempt to challenge this precedent, especially given Trump’s previous statements about removing officials he disagrees with.
Additionally, there are legislative efforts, such as the SEC Stabilization Act proposed by House Republicans. It aims to restructure the SEC and facilitate the removal of commissioners like Gensler. While this bill has not advanced significantly, it reflects ongoing political efforts to influence the SEC’s current leadership.
Conclusion
All eyes will be on Trump on July 27 as he will take the centre stage at Bitcoin 2024 Nashville event. After his previous statement on “Biden’s hatred of Bitcoin,” it is most likely that people will hear Trump speaking positively about the crypto market. He may cover a wide range of topics in his speech, from regulatory frameworks to crypto taxation policies.
While it is difficult to predict what Trump has in his mind for the Bitcoin 2024 Nashville conference, we can say for sure that the event will be marked in the history books of crypto.
Also Read: Latest Updates on Bitcoin 2024 Conference at Nashville
