Opinion: Donald Trump may ban Bitcoin in the US, but this is highly unlikely

US President Donald Trump, who recently unflatteringly commented on Bitcoin in particular and cryptocurrencies in general, could theoretically prohibit American citizens from interacting with Bitcoin or significantly restrict access to cryptocurrency platforms, said researcher Alex Kruger.

So, in fact, Bitcoin is a program code.  The US government cannot ban the code and cannot ban citizens from storing a specific sequence of ones and zeros on hardware devices.  Nevertheless, it is within the competence of the executive to prohibit retail investors from interacting with cryptocurrencies because of their volatility, which can hit the exchanges a lot.

Trump, Kruger argues, could issue a decree banning American citizens from working with Bitcoin, as he did in the case of El Petro.  However, then it was a question of foreign policy; in the case of Bitcoin, such a decree can be repealed by the US Congress or the courts, since it will not comply with the constitutional powers of the president.

Nevertheless, Kruger stressed that in US history there was already a precedent with this kind of conflicting decrees.  Speech on the executive order of Franklin Roosevelt No. 6102 of 1933, which suggested the actual confiscation of gold from the US population.  This time the president may also try to find a reason for such tough actions, argues the researcher.

In addition, Donald Trump may prohibit banks from servicing cryptocurrency exchanges, which will be a serious blow to the infrastructure of the industry.

Note that such an aggressive action can be a threat to the banking system, a decrease in the effectiveness of economic sanctions (a threat to US foreign policy interests), or the use of cryptocurrency in criminal activities, which he wrote on Twitter.

Anyway, Kruger considers the probability of such a ban to be very low, but not quite incredible.  His Twitter followers are confident that such tough actions will not help Trump to get more votes in the upcoming presidential elections in 2020.

Recall that in the run-up to the next week’s hearings on the proposed Libra digital currency project proposed by Facebook, a bill was introduced in the US Congress, if adopted, the technology giants will be prohibited from creating their own assets of this kind.

The first participant in the US election race, who proposed a specific cryptocurrency policy, was the candidate from the Democratic Party, Andrew Young.

As President, Young will contribute to the following steps: determining the status of a token [recognizing the existence of utility-tokens], defining the powers of federal departments, ensuring consumer protection in the field of cryptocurrency, developing a clear tax policy and creating a unified regulatory framework.

The organization Coin Center, which lobbies for the interests of the industry in Washington, highly appreciated Young’s intentions and stressed that he had come to the right conclusions.

Leave a Reply

Your email address will not be published. Required fields are marked *