In a dramatic pivot, former President Donald Trump, who once dismissed cryptocurrency as a “scam,” is now headlining one of the industry’s most significant events – Bitcoin 2024.
This shift underscores the GOP’s increasing interest in digital assets, as Trump prepares to speak at the Bitcoin 2024 convention in Nashville. Joining him are notable figures like independent presidential candidate Robert F. Kennedy Jr., former GOP candidate Vivek Ramaswamy, Senator Bill Hagerty of Tennessee, Senator Cynthia Lummis of Wyoming, and even Democratic Representative Ro Khanna of California.
Trump’s participation marks a stark contrast to his 2021 stance when he criticized cryptocurrencies. The industry, however, has rebounded since the collapse of major firms like FTX in 2022, signaling a revival in the crypto market. Advocates believe that cryptocurrency users are becoming a formidable political force this election cycle, although it’s uncertain how many voters prioritize crypto over other issues.
The Republican Party’s courtship of the crypto community centers on promises of lighter regulation, aligning a currency designed to bypass government oversight with a major U.S. political party. David Yermack, a professor at New York University’s Stern School of Business, notes that crypto was historically a nonpartisan issue, largely due to a lack of understanding among both Republicans and Democrats. However, recent years have seen the GOP moving more quickly in the crypto space.
Stand With Crypto, a nonprofit industry group backed by Coinbase, has rallied over 1.3 million advocates. Additionally, three significant pro-crypto super PACs—Fairshake, Defend American Jobs, and Protect Progress—have raised over $230 million to support favorable candidates. This financial muscle is already influencing political contests. Fairshake, for example, spent over $10 million against progressive Democrat Katie Porter, a Senate candidate from California who criticized bitcoin mining’s environmental impact. Porter lost her primary, showcasing the PAC’s clout.
Some high-profile crypto advocates, including the Winklevoss twins, founders of Gemini, are backing Trump. They each donated $1 million in bitcoin to his campaign, although the contributions were retracted due to exceeding federal limits. Despite a slight decline in crypto adoption, with 7% of U.S. adults holding or using cryptocurrency in 2023, down from previous years, the industry’s political influence is growing.
Critics like Dennis Kelleher, CEO of Better Markets, argue that the crypto industry aims to buy political favor to push for minimal regulation, prioritizing its interests over those of the American people. He asserts that the industry’s ultimate goal is to operate with as little oversight as possible.
The Bitcoin 2024 convention has attracted a significant number of politicians, leading to jokes among attendees that the event resembles a “RNC Lite,” referring to the Republican National Convention.
Trump’s newfound support for the crypto sector is evident in his recent activities. During a June fundraiser in San Francisco, he criticized Democratic efforts to regulate the industry and met with bitcoin mining companies at his Mar-a-Lago resort. Jayson Browder, head of public policy for Marathon Digital Holdings, praised Trump’s receptiveness and support, contrasting it with the Biden administration’s stance.
Trump has expressed a desire to see more U.S. firms engage in bitcoin mining, a sentiment welcomed by crypto executives frustrated with the SEC’s enforcement actions under President Joe Biden. The agency has accused companies like Coinbase and Binance of facilitating unregistered securities trading, allegations the firms deny.
The White House maintains that the Biden-Harris administration will continue collaborating with stakeholders and Congress to develop necessary safeguards for crypto-asset innovation. Should Vice President Kamala Harris win the presidential election, she would likely continue Biden’s policies.
While neither the Trump nor Harris campaigns commented for this article, traders betting on a second Trump presidency are gravitating towards assets likely to benefit from his administration. Cameron Dawson, chief investment officer of NewEdge Wealth, identifies crypto, particularly bitcoin, as a prime investment for those anticipating a Trump win.
Hillary Adler, co-founder of BitcoinOS and a former Democratic voter now identifying as a left libertarian, highlights the GOP’s strategic pivot to support crypto. She notes that Republicans have always excelled in long-term political strategies and now see value in aligning with the crypto movement.
As Trump and the GOP deepen their ties with the crypto industry, the implications for the upcoming election and the regulatory landscape of digital assets will be closely watched.
