How Trump Went From Bitcoin Skeptic to ‘Crypto President’

• Donald Trump hasn’t always been a fan of cryptocurrencies, but he has recently expressed strong support for the industry.
• The industry’s political spending has made cryptocurrency an election issue for both parties, a source told BI.
• The former president’s pro-crypto stance makes bitcoin a “Trump trade,” Bernstein said.

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

“He said he was going to be the president of crypto,” said Trevor Traina, a tech executive who attended the fundraiser. Reuters this month.

It’s not a title the Republican candidate would have carried with such enthusiasm during his first term.

In a series of tweets In 2019, 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 very volatile and based on nothing.”

He maintained this view at least through 2021, telling Fox Business that bitcoin “This looks like a scam.“When making these arguments, Trump often refers to reiterated that the industry needs strict regulation.

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

After telling CNBC earlier this year that he was no longer safer to want to withdraw cryptocurrenciesIn May, he said the United States should be the country of industry world leader in the space.

“Corrupt Joe Biden, on the other hand, the worst president in our country’s history, wants to see him die a slow and painful death,” he wrote in an article published on Social truth.

The comparison with his Democratic rival may be emblematic of one reason why crypto has become such a hot electoral topic — and one of increased attention for both parties.

“The general consensus is that this is going to be a very close election,” Alan Konevsky, tZERO’s chief legal officer, told Business Insider. “The competition for campaign money is fierce, and crypto and the crypto lobby have proven to be a significant force in that as well.”

The numbers confirm this. According to a report by May Public Citizen reportThe cryptocurrency industry is becoming a political fundraising giant that’s hard to ignore. During the 2024 election cycle, crypto-backed super PACs raised more than $102 million, the third-highest amount of any super PAC.

Trump’s promises to support U.S. crypto miners or ease regulatory constraints are giving him access to new funding from the industry. For example, one cryptocurrency executive told CNBC that the space is now dedicated to U.S. crypto miners. donate $100 million to his campaign.

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

On the other hand, the rise of cryptocurrencies in the electoral competition also stems from the importance that the topic has taken on for the American public, an aspect that may have been underestimated before, Konevsky noted.

For example, about half of young voters When asked by Grayscale, they said they would consider a candidate’s crypto stance before voting.

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

The growing political adoption of crypto means that it may not matter who wins in the long run, said billionaire crypto bull Michael Novogratz. Efforts to support the industry are also being pushed by Congress, as the financial innovation and technology bill.

But in the short term, the market seems more confident in Trump’s ability to 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 surge in the fourth quarter.

“If electoral sentiment shifts more towards Republicans, crypto will eventually become Trump’s top trade and hopes for a favorable regulatory regime will change the narrative of “use cases” around blockchains such as ETH,” the analysts wrote.

It’s also important to watch how regulatory and court appointees may change under a different administration, Konevsky noted. In addition to questions about who heads market watchdogs like the Securities and Exchange Commission, cryptocurrency lawsuits have placed judges at the forefront as decision-makers on market-related issues.

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