Regulation
Trump’s adoption of crypto raises hope amid regulatory fears, raises $12 million in San Francisco
Donald Trump, the Republican presidential candidate, has presented himself as a staunch defender of the cryptocurrency sector. At a fundraiser in San Francisco on Thursday, Trump criticized Democrats for their regulatory efforts. The event, hosted by tech venture capitalists David Sacks and Chamath Palihapitiya, raised 12 million dollars for his campaign.
Held at Sacks’ luxurious Pacific Heights home, the fundraiser attracted considerable attention. Former President Trump, now the leading Republican candidate in the 2024 elections, has emphasized his commitment to supporting the crypto sector. This position corresponds to his recent acceptance of donations from the Bitcoin Lightning Network, marking a historic first for a US presidential campaign.
Trump’s endorsement of cryptocurrency represents a notable shift from his previous stance. In 2021, he described crypto as a “disaster waiting to happen.” By 2024, however, he had become a strong advocate, holding a portfolio worth over $33 million. This highlights the growing importance of digital assets in the financial sector.
At the fundraiser, Trump stressed the importance of keeping the crypto industry in the United States. He criticized the Biden administration’s regulatory approach, which he said could spur innovation abroad. “He said he would be the president of crypto,” noted Trevor Traina, a technology executive and former Trump ambassador to Austria.
Crypto Industry Courts Politicians Amid Regulation
The crypto industry is increasingly engaging with U.S. politicians to influence policy, especially in light of increased regulatory oversight. Major bankruptcies in 2022 have spooked investors and exposed significant fraud and misconduct. These events have left millions of investors distraught, intensifying calls for regulatory reforms to protect consumers and ensure market stability.
President Joe Biden has taken steps to address these concerns. In 2022, he signed a decree aimed at promoting the responsible development of digital assets. The order resulted in reports urging regulators, such as the SEC and CFTC, to issue guidelines and rules to mitigate risks within the crypto ecosystem.
Despite San Francisco’s liberal reputation, Trump has gained support from high-profile venture capitalists and cryptocurrency investors. Many of these supporters believe that current regulations are too restrictive. Jacob Helberg, an advisor to Palantir Technologies Inc., claimed that if Trump were re-elected, he would immediately end efforts by Joe Biden and Gary Gensler to regulate the digital assets industry.
Well-known figures from the crypto industry gathered at the event, including executives from Coinbase and the Winklevoss twins. Hosts Sacks and Palihapitiya have publicly disclosed their investments in digital assets, particularly Bitcoin, demonstrating their dedication to the industry.
Trump’s stance on digital assets suggests a potential shift in US policy if he wins the election. However, he has not yet provided specific details on the proposed regulations. Meanwhile, the Biden administration continues to promote a balanced approach that encourages innovation while protecting consumers from the risks associated with new technologies.
Related reading | Trump accepts Shiba Inu and more for donations