The Novice Approach in Donald Trump's Inauguration: Why the Lack of Speech on Cryptocurrencies Raised Concerns among Traders

The inauguration of President Donald J. Trump on January 20, 2025, marked a new chapter in American history. As the world watched the new president's first public address, the content of his speech reflected many aspects of his campaign agenda. Among the key points discussed were tax reform, investment in infrastructure, and an emphasis on reducing regulations. However, despite numerous reports of the impact cryptocurrencies could have on the economy and the financial landscape, the new president did not mention cryptocurrencies or blockchain technology in his speech. This absence of mention sparked concerns among crypto traders and industry experts. In this article, we will delve deeper into the importance of cryptocurrencies in shaping the global economy and why the lack of architectural addresses about them in the Trump administration is not good for the crypto industry.

The Significance of Cryptocurrencies in Shaping the Global Economy

Cryptocurrencies have been one of the hottest topics in the financial world in recent years. Since the post-2008 economic recession, investors worldwide have turned to digital currencies to diversify their portfolios due to their potential growth and stability. Moreover, the launch of blockchain technology has served as a springboard, unleashing numerous other fintech opportunities.

One of the most important aspects of cryptocurrencies is their decentralization. They operate on a peer-to-peer basis and are independent of any central government body or traditional financial institutions, giving users various investing and monetary options. The decentralized nature of cryptocurrencies represents several benefits: they're readily accessible to anyone, they can help streamline payment processes, and their encrypted nature provides a level of security for transactions outside the reach of the usual regulatory and legal mechanisms.

2. President Trump's Inauguration: What Was Missing?

While President Trump's inauguration speech was filled to the brim with promises
and commitments focused on reviving the American economy, some important issues were missed. One of the most prominent ones was the role cryptocurrencies could play in the future.
Despite the fact that the new administration has been in office for less than a year, the U.S. Treasury has already been sending mixed signals regarding the administrations stance on the digital coin world. In a tweet in September 2017, President Trump stated that cryptocurrencies like Bitcoin were a "bubble" and "not real money," while his Treasury Secretary, Steven Mnuchin, voiced concerns about cryptocurrencies being used for illicit activities like tax evasion, money laundering, and terrorism financing.
Despite these concerns, however, the administrations focus on their mitigation efforts has been minimal. The lack of concrete policy proposals targeting illicit crypto activities demonstrates a lack of coherent strategies to address the risks associated with digital currencies that contribute to recurring market instability.

3. Digital Currency's Impact on the Global Economy

The emergence of cryptocurrencies has had a significant impact on the global economy, particularly in developing countries and in regions with limited financial services access, such as parts of Africa and the Middle East. Cryptocurrencies can foster financial inclusion by offering users an alternative to traditional banks, reducing financial inequality, and promoting overall economic growth.

4. The Lack of a Concrete Crypto Policy under Trump administration

The absence of a concrete policy to address concerns and risks associated with cryptocurrencies has led to worries that the Trump administration is either oblivious to cryptocurrencies' potential or is not confident in its ability to effectively leverage these new innovations. Considering the anarchic behavior resulting from government interventions in the past, such as the prosecution of Silk Road operators and the subsequent decline of bitcoin as a useable currency, it is entirely plausible that the new government might be seeking to tread cautiously.

However, a coherent and assertive approach to address the risks associated with cryptocurrencies would demonstrate the administration's competence in balancing concerns over its misuse while exploiting its potential to spur economic growth and innovation. Additionally, such a well-structured policy would help restore investor confidence, creating a more stable and secure market environment.

Conclusion

In conclusion, the failure to address cryptocurrencies or blockchain technology in President Trump's inauguration speech indicates a lack of understanding and appreciation for the potential value of these innovations. As cryptocurrencies continue to shape the global economy, the U.S. government should find ways to build a balance between balancing the benefits and addressing the risks associated with digital currencies, while inspiring investor confidence in the developing markets.

The absence of a coherent, balanced and comprehensive policy aimed at cryptocurrencies poses a danger to the new industry and its potential growth. More times than not, the U.S. government's hesitation threatens the industry and the nation as a whole. A more timely and effective government response can pave the way for globally-competitive U.S.-based businesses, maintain American competitiveness in the global economy, and promote the innovative growth of the financial technology sector