diff --git a/src/simplewallet/simplewallet.cpp b/src/simplewallet/simplewallet.cpp
index 397614328..4acf30b27 100644
--- a/src/simplewallet/simplewallet.cpp
+++ b/src/simplewallet/simplewallet.cpp
@@ -2028,7 +2028,7 @@ simple_wallet::simple_wallet()
                            tr("Stop mining in the daemon."));
   m_cmd_binder.set_handler("set_daemon",
                            boost::bind(&simple_wallet::set_daemon, this, _1),
-                           tr("set_daemon <host>[:<port>]"),
+                           tr("set_daemon <host>[:<port>] [trusted|untrusted]"),
                            tr("Set another daemon to connect to."));
   m_cmd_binder.set_handler("save_bc",
                            boost::bind(&simple_wallet::save_bc, this, _1),
@@ -3778,6 +3778,33 @@ bool simple_wallet::set_daemon(const std::vector<std::string>& args)
     }
     LOCK_IDLE_SCOPE();
     m_wallet->init(daemon_url);
+
+    if (args.size() == 2)
+    {
+      if (args[1] == "trusted")
+        m_trusted_daemon = true;
+      else if (args[1] == "untrusted")
+        m_trusted_daemon = false;
+      else
+      {
+        fail_msg_writer() << tr("Expected trusted or untrusted, got ") << args[1] << ": assuming untrusted";
+        m_trusted_daemon = false;
+      }
+    }
+    else
+    {
+      m_trusted_daemon = false;
+      try
+      {
+        if (tools::is_local_address(m_wallet->get_daemon_address()))
+        {
+          MINFO(tr("Daemon is local, assuming trusted"));
+          m_trusted_daemon = true;
+        }
+      }
+      catch (const std::exception &e) { }
+    }
+    success_msg_writer() << boost::format("Daemon set to %s, %s") % daemon_url % (*m_trusted_daemon ? tr("trusted") : tr("untrusted"));
   } else {
     fail_msg_writer() << tr("This does not seem to be a valid daemon URL.");
   }