How Trump Went From Bitcoin Skeptic to ‘Cryptocurrency President’

• Donald Trump hasn’t always been a fan of cryptocurrencies, but he has recently expressed strong support for the sector.
• Political spending in the sector has made cryptocurrencies an election issue for both parties, a source told BI.
• According to Bernstein, the former president’s pro-crypto stance is turning Bitcoin into a “Trump exchange.”

Thank you for signing up!

Access your favorite topics in a personalized feed on the go. Download the app

By clicking “Subscribe”, you accept our Terms of Service AND Privacy PolicyYou can unsubscribe at any time by visiting our Preferences page or by clicking “unsubscribe” at the bottom of the email.

At a campaign fundraiser in June, former President Donald Trump presented himself in a way that not long ago would have seemed unlikely.

“He said he was going to be the president of cryptocurrency,” said tech executive Trevor Traina, who attended the fundraiser. News that month.

It’s not a title the Republican candidate would have worn with as much enthusiasm during his first term.

In a series of tweets In 2019, then-President Trump made it clear that he did not like cryptocurrencies.

“I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and based on nothing.”

He maintained that view at least through 2021, telling Fox Business that bitcoin “It looks like a scam.“When making these remarks, Trump often reiterated that the sector needs strict regulation.

However, as the 2024 election approaches, Trump’s position has changed almost completely.

After telling CNBC earlier this year that he was not I’m not sure I want to eliminate cryptocurrencies anymorein May, he said the United States should be the industry global leader in the space.

“Corrupt Joe Biden, on the other hand, the worst president in the history of our country, wants me to die a slow and painful death,” he wrote in a post on Social truth.

The comparison to his Democratic rival may be emblematic of one of the reasons cryptocurrencies have become such a hot election issue and an increasing focus for both parties.

“It looks like it’s going to be a very close election,” Alan Konevsky, chief legal officer at tZERO, told Business Insider, “where the competition for campaign funds is fierce, and cryptocurrencies and the cryptocurrency lobby have proven to be a major force in that regard as well.”

The numbers confirm the point. According to a report from May Public Citizen ReportThe cryptocurrency sector is becoming a political funding titan that is hard to ignore. During the 2024 election cycle, crypto-backed super PACs raised over $102 million, the third-highest of all super PACs.

Trump’s promises to support U.S. crypto miners or ease regulatory overreach are giving him access to new funds from the industry. For example, one crypto industry executive told CNBC that the space was now committed to donating $100 million to his campaign.

“As an industry we are committed to raising over $100 million and getting over 5,000,000 people out to vote for Trump’s re-election,” said BTC Inc. CEO David Bailey.

On the other hand, the rise of cryptocurrencies in the electoral race also stems from the importance that this topic has acquired for the American public, an aspect that may have been underestimated previously, Konevsky noted.

For example, about half of young voters Grayscale interviewees said they will consider a candidate’s crypto stance before voting.

The increasingly bipartisan nature of cryptocurrencies is also influencing President Biden’s platform. He too has opened up to cryptocurrency donations, and his administration has changed regulators’ approach to the sector.

Growing political support for cryptocurrencies means that it might not matter who will win in the long run, said billionaire crypto bull Michael Novogratz. Congress is also pushing for pro-industry efforts, such as the bill on financial innovation and technology.

But in the short term, the market seems more confident that Trump can help the sector.

In late June, Bernstein noted that while Republicans appear more likely to win the November election, Trump’s promises of better regulation will help Bitcoin’s value rise in the fourth quarter.

“If election sentiment shifts toward the Republicans, cryptocurrencies could end up being Trump’s primary ‘cash coin’ and hopes for a favorable regulatory regime would change the ‘use case’ narrative around blockchains like ETH,” the analysts wrote.

It’s also important to note how regulatory and court officials may change under a different administration, Konevsky noted. Aside from questions about who runs market watchdogs like the Securities and Exchange Commission, cryptocurrency lawsuits have placed judges at the centre of attention, as decision makers on market-related issues.

Fuente