How Trump Went From Bitcoin Skeptic to ‘Crypto President’

• Donald Trump has not always been a supporter of cryptocurrencies, but he has recently expressed strong support for the sector.
• The industry’s political spending has made cryptocurrencies an electoral issue for both parties, a source told BI.
• The former president’s pro-crypto stance is making 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 cryptocurrency,” said tech executive Trevor Traina, who attended the fundraiser. Reuters that month.

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

On a series of tweets In 2019, then-President Trump made it clear that he didn’t like cryptocurrencies.

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

He held that view until at least 2021, telling Fox Business that bitcoin “It looks like a scam.“In making these comments, Trump often reiterated that the industry 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 about taking cryptocurrency anymoreIn May, he declared that the US should be the country of industry Global leader in space.

“Corrupt Joe Biden, on the other hand, the worst president in the history of our country, wants him 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 reason why cryptocurrencies have become such a hot election issue — and an increasing focus for both parties.

“By all accounts, this is expected to be a very close election,” Alan Konevsky, tZERO’s chief legal officer, told Business Insider, “where there’s fierce competition for campaign money, and where cryptocurrencies and the crypto lobby have proven to be a major force from that perspective as well.”

The numbers prove the point. According to a May report 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 amount among all super PACs.

Trump’s promises to support U.S. cryptocurrency miners or loosen regulations are giving him access to new industry funding. For example, one cryptocurrency executive told CNBC that the space is now committed to donating $100 million to his campaign.

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

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

For example, about half of young voters surveyed by Grayscale said they will consider a candidate’s stance on cryptocurrencies before voting.

The increasingly bipartisan nature of crypto is also influencing President Biden’s platform. He has also opened up to crypto donations, and his administration has adjusted regulators’ approach to the industry.

The growing political acceptance of cryptocurrency means that may not matter who wins in the long run, said billionaire crypto bull Michael Novogratz. Pro-industry efforts are also being pushed by Congress, as the bill on Innovation and Financial Technology.

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

In late June, Bernstein noted that if Republicans seem more likely to win the November election, Trump’s promises of better regulation will help bitcoin rally in the fourth quarter.

“If electoral sentiment shifts to a more Republican one, cryptocurrencies would end up being Trump’s main ‘deal’ and hopes for a favorable regulatory regime would change the ‘use case’ narrative around blockchains like ETH,” analysts wrote.

It’s also important to note how regulatory and judicial appointees might change under a different administration, Konevsky noted. In addition to the questions of who leads market watchdogs like the Securities and Exchange Commission, cryptocurrency lawsuits placed judges at the forefront as decision makers in market-related matters.

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