To claim that Bitcoin is “a scam against the dollar” and then promote it to investors as the new face of finance, the same person has shifted. In just a few years, Donald Trump has radically redefined his stance on cryptocurrencies. The move has drawn in the industry’s power players who are hopeful that the next U.S. president will take a lighter regulatory line and a policy that favors economic interests. This weekend he was at the centerpiece of the sector’s major conference.
During his time in office, from 2016 to 2020, Trump was not seen as crypto-friendly. Yet in recent months his attitude has swung toward enthusiasm, especially after profits from selling digital assets like NFTs. In May, his campaign began accepting donations in digital assets such as Bitcoin, Ether, and Solana, bringing in about 4 million. Since then, the conservative candidate has met with leading crypto firms and top Silicon Valley investors, publicly promising that the future of Bitcoin will be built in the United States rather than in China, where a growing crypto industry is expanding.
Desregulatory maneuver
With this pivot, Trump aims to turn the crypto sector’s frustration with Biden-era policies to his advantage. In the past four years, and particularly after the collapse of FTX, the Democratic administration has pushed for tighter sector regulation and has brought actions against companies like Coinbase and Ripple, arguing these moves protect consumers amid a flood of crypto scams.
Aware of the backlash, Trump has surrounded himself with crypto insiders like David Bailey, CEO of Bitcoin Magazine and campaign adviser, and J.D. Vance, the venture-capital experienced senator chosen as his running mate. “Republicans will end the illegal, anti-American push by Democrats against cryptocurrencies and will oppose the establishment of a digital currency central bank,” reads the conservative platform adopted at the recent Republican National Convention.
These promises have made Trump a favorite among the crypto community, a group that in the United States numbers about 18 million. That favorable stance helps explain a surge in Bitcoin’s value to 60,000 dollars, a spike tied to bold fundraising efforts and a renewed push to win support on crypto-focused betting platforms.
In pursuit of crypto millions
Since 2020, crypto firms have poured more than 149 million dollars into lobbying to influence White House regulatory efforts, backing lawmakers who could tilt the rules in their favor, according to data from transparency groups OpenSecrets and Public Citizen. One of the campaign’s targets is Vance, who reportedly holds between 100,000 and 250,000 dollars in Bitcoin. This lobbying drive has already helped shape legislation that eases federal oversight of crypto activities. “It will create new regulatory gaps and expose investors and capital markets to substantial risk,” warned Gary Gensler, head of the U.S. Securities and Exchange Commission.
Now, the plan is to fund Trump with new investments. Big names like Cameron and Tyler Winklevoss, early Bitcoin billionaires, and influential venture capitalists Marc Andreessen and Ben Horowitz, who manage a multi-billion-dollar crypto fund, have signaled support. They believe deregulation will protect their holdings and end the Biden-era anti-crypto push. “People in Silicon Valley deeply involved in cryptocurrencies who want to operate with fewer limits are backing Trump,” said veteran investor Vinod Khosla. Bailey has reportedly promised Trump a fundraising haul of 15 million.
And the Democrats?
In recent months, the Biden administration has tried to soothe tensions with the crypto sector, but insiders told The Washington Post that the outreach has been met with resistance. The big question now is whether, with Kamala Harris in the spotlight, Democrats will keep the hard-line stance or soften ties with the industry. Although Harris has not publicly commented on the issue, her ties to the tech elite suggest a potentially more open stance toward cryptocurrencies.