Regulation
Why Trump Supports Bitcoin, What Is His Hidden Agenda?
Former President Donald Trump
Donald Trump Donald Trump is an American former president, politician, businessman, and media personality who served as the 45th President of the United States from 2017 to 2021. Trump earned a bachelor’s degree in economics from the University of Pennsylvania in 1968. Trump won the 2016 presidential election as the Republican Party nominee against Democratic Party nominee Hillary Clinton, but lost the popular vote. As president, Trump ordered a travel ban on citizens of several Muslim-majority countries, diverted military funding to build a wall on the U.S.-Mexico border, and implemented a policy of family separation. Trump has remained a prominent figure in the Republican Party and is considered a likely candidate for the 2024 presidential election. The president has recently softened his stance on cryptocurrencies, a move that has brought him closer to winning the next US elections to be held in November 2024.
Some see the shift as a strategic move to improve his election prospects, while others speculate that Trump sees an opportunity to clarify cryptocurrency regulations and push the U.S. government to adopt Bitcoin as a “strategic reserve.”
From critic to supporter: how?
Historically, Trump has been critical of cryptocurrencies, labeling them a threat to the U.S. dollar and condemning their volatility. However, his recent remarks reveal a new appreciation for the potential of digital currencies.
At the Bitcoin Conference in Nashville, Trump praised the way cryptocurrencies could innovate and change the financial world. Meanwhile, in a previous statement, Trump expressed his desire for Bitcoin (BTC) to be mined in America.
While Trump has not explained his sudden move into cryptocurrencies, he has used the issue to distinguish himself from cryptocurrency skeptics like Elizabeth Warren.
The cryptocurrency industry, with its strong financial backing, also represents a major fundraising opportunity for Trump. He recently received $4 million in political donationsincluding $1 million each from cryptocurrency entrepreneurs Tyler and Cameron Winklevoss.
Support from JD Vance
Contributing to this positive outlook is the choice of Trump as vice president, Mr. Vance
Jd Vance James David Vance is an American politician, former corporate lawyer, author, and Marine Corps veteran who has served as the Junior United States Senator for Ohio since 2023. He was born on August 2, 1984, graduated from Middletown High School, and later enlisted in the United States Marine Corps, where he served for 4 years. Vance has promoted strongly conservative policies, opposing abortion, same-sex marriage, and gun control, and has also proposed banning transgender health care for minors. Vance’s work in the Senate has included: He co-sponsored a bill with Senator Raphael Warnock (D-GA) to lower the price of insulin. He worked with Senator Elizabeth Warren (D-MA) to recover executive pay when large banks fail. Along with Rep. Marjorie Taylor Greene (R-GA14), she introduced a companion bill that would criminalize gender-affirming care for minors with penalties of up to 12 years in prison. A senator known for her strong support from Bitcoin and blockchain technology. During his 2021 Senate campaign, Vance revealed that he owned more than $100,000 in Bitcoin.
This year, Vance proposed new legislation to clarify how different cryptocurrencies should be regulated, both by the SEC and the CFTC. Meanwhile, his pro-crypto views are in line with the idea that digital currencies can improve financial inclusion and challenge traditional banks.
Growing adoption of cryptocurrencies
BlackRock’s push for the first spot Bitcoin ETF in late 2023 or early 2024 has led to a surge in cryptocurrency adoption in the United States. After the ETF was approved, more financial institutions entered the cryptocurrency space, leading to greater acceptance by the general public.
According to Security.org’s 2024 Cryptocurrency Adoption and Sentiment Report, 40% of American adults now own cryptocurrency, up from 30% last year. Among current holders, 63% plan to buy more in the next year, and female ownership has increased from 18% to 29%.
Additionally, 21% of non-cryptocurrency holders are now more likely to invest thanks to the new Bitcoin ETF, and 46% believe that Bitcoin ETF approvals will benefit the blockchain industry.
Read also: Mt. Gox Crash and FOMC Fears Rise: Will Bitcoin Price Crash?
As the election approaches, Trump’s embrace of cryptocurrency could be the game-changer the industry has been waiting for.