In a dramatic shift, former President Donald Trump has recently expressed strong support for cryptocurrencies, a stark contrast to his previous dismissive stance. This pivot aims to gain favor among young, tech-savvy voters and influential crypto industry leaders, positioning him against his political rivals Joe Biden and Robert F. Kennedy Jr.
The announcement came shortly after Trump met with Bitcoin miners at his Mar-a-Lago estate in Florida. Following the meeting, he took to his Truth Social platform to rally cryptocurrency users, encouraging them to vote for him as a defender of Bitcoin against what he described as Biden’s antagonism towards the digital currency. Trump declared that under his leadership, he would champion the rights of cryptocurrency users and ensure the future of Bitcoin is safeguarded in the U.S.
This new stance appears to be yielding results. A Bitcoin mining executive revealed to CNBC that the industry has pledged to raise over $100 million and mobilize more than 5 million voters in support of Trump’s campaign. This marks a significant departure from Trump’s previous comments. In 2019, while serving as president, he openly criticized Bitcoin and other cryptocurrencies, labeling them as unreliable and potentially unlawful. He reaffirmed his commitment to the U.S. dollar, dismissing cryptocurrencies as speculative and dangerous.
Even after leaving office, Trump maintained his critical view. As recently as 2021, he referred to Bitcoin as a “scam” and a “disaster waiting to happen,” advocating for stringent regulations on cryptocurrencies. However, his perspective began to soften in early 2024. In a March interview with CNBC, Trump acknowledged the growing entrenchment of Bitcoin, suggesting that it might be too late to eliminate it entirely.
By May, Trump’s transformation was complete. Speaking at the Libertarian Party’s national convention in Washington, D.C., he fervently supported cryptocurrencies, promising to protect Bitcoin from regulatory crackdowns and ensuring its development within the United States. He pledged to prevent the establishment of a central bank digital currency and to safeguard the right to self-custody for America’s 50 million crypto holders.
Trump’s campaign has also announced it will accept cryptocurrency donations, a historic first for a major presidential campaign. This move is part of a broader strategy to attract young voters, particularly young men of color, who are traditionally Democratic supporters. This comes at a time when Trump and his allies are intensifying their criticism of Robert F. Kennedy Jr., another vocal cryptocurrency advocate.
Kennedy, whose first public appearance as a presidential candidate was at a Bitcoin conference, welcomed Trump’s newfound support for cryptocurrencies, expressing hope that President Biden might follow suit. Biden recently vetoed a crypto industry-backed resolution aimed at overturning new SEC guidelines on cryptocurrencies, citing the need for consumer and investor protections to harness the potential benefits of crypto innovation.
A former Biden administration financial regulator now analyzing the crypto industry indicated that the sector is skeptical about Trump’s commitment given his previous record. The industry’s frustration with perceived hostile rhetoric from Biden’s regulators, particularly SEC Chair Gary Gensler, is notable. Gensler has been critical of the crypto industry, citing its history of failures and fraudulent activities, which he attributes to a lack of compliance with established rules.
This tension within the industry is evident. While some remain wary of Trump’s sudden advocacy, others are convinced by his recent positive remarks, especially in contrast to the Biden administration’s regulatory stance. Mark Cuban, a prominent Democratic billionaire, cautioned Biden that his administration’s approach to crypto could alienate voters, potentially impacting the upcoming election.
Despite the controversial figures like Sam Bankman-Fried falling from grace, the crypto industry continues to expand its influence in Washington. Organizations like the Fairshake super PAC are raising significant funds to support crypto-friendly candidates and oppose those advocating for stricter regulations.
However, the overall appeal of cryptocurrency remains limited. A 2023 Pew Research Center survey found that only 17% of Americans had ever traded or invested in cryptocurrency, with the majority expressing a lack of confidence in its safety and reliability. Nonetheless, the demographic profile of crypto users—primarily young, male, and racially diverse—makes them a crucial voter segment for Biden, Trump, and Kennedy.
While Trump has yet to outline detailed crypto policies, his recent overtures suggest a potentially more favorable regulatory environment under his administration. Brian Morgenstern, a public policy executive at the Bitcoin mining company Riot Platforms, endorsed Trump in an op-ed, highlighting the former president as the best choice for Bitcoin advocates and criticizing the Biden administration’s approach.
Trump’s reversal on cryptocurrencies reflects a broader strategy to align with emerging technologies and their proponents, aiming to galvanize support and reshape his political base ahead of the upcoming election.