In a sharp reversal, former President Donald Trump has embraced the cryptocurrencies he once reviled, seeking to outflank rivals Joe Biden and Robert F. Kennedy Jr.
Hours later meeting with bitcoin miners at his Mar-a-Lago, Fla., estate on Wednesday, former President said in his Truth Social media platform that cryptocurrency users should “Vote for Trump!” because he will face “Biden’s hatred of Bitcoin.”
The statement came after weeks of concerted outreach to crypto enthusiasts and the people leading the burgeoning industry – and it already appears to be paying off. A bitcoin mining executive who met with Trump told CNBC that his industry has committed to raising more than $100 million and turning out more than 5 million voters to help Trump this fall.
But just a few years ago, when Trump was in the White House, he made it clear that he was not a fan of bitcoin and other cryptocurrencies.
“I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and based in the air,” he said in a series of social media posts in 2019, while still in office. “Unregulated crypto assets can facilitate illegal behavior, including drug trading and other illegal activities.”
“We only have one real currency in the US,” Trump continued, “and it will always be that way. It’s called the United States dollar!”
Trump maintained this position after leaving office and into 2021, when told Fox Business in an interview, bitcoin “just seems like a scam.” In another interview with the network, he said that cryptocurrencies seemed like a “disaster waiting to happen.”
“I don’t think we should have all the bitcoins in the world out there. I think they should regulate them very, very high,” Trump told Fox Business in August 2021.
Three months ago, in March, Trump told CNBC that his thinking changed somewhat as the price of bitcoin recovered after a series of scandals and setbacks, saying that crypto was becoming increasingly entrenched and that he was “not sure if I wanted to take it out at this point.” .
In May, Trump completed his evolution to become a full-throttle cryptocurrency evangelist in the run-up to the Libertarian Party national convention in Washington, where he and Kennedy spoke.
In a speech to libertarians that was frequently interrupted by boos and jeers, Trump received applause for promising to “stop Joe Biden’s crusade to crush crypto.”
“I will ensure that the future of crypto and bitcoin will be made in the US, not abroad. I will support the right to self-custody for the country’s 50 million cryptocurrency holders,” he added. “With her vote, I will keep Elizabeth Warren and her henchmen out of your bitcoin. And I will never allow the creation of a central bank digital currency.”
Because mining requires enormous amounts of energy, Trump now portrays cryptography as a national and energy security issue, including for the fossil fuel industry which he promised to defend.
His campaign also announced that it would become the first major presidential campaign in history to accept cryptocurrency donations, promising to “build a crypto army by leading the campaign to victory on November 5th.”
The move comes as Trump’s campaign feels confident it can draw some young voters — especially young men of color — away from their traditional home in the Democratic Party and at a time when Trump and his allies are stepping up their attacks on Kennedy.
Kennedy is an outspoken supporter of cryptocurrencies, whose first public appearance as a presidential candidate came at a bitcoin conference in Miami last year.
“I’m not going to question whether it was a political decision,” Kennedy said when asked about Trump’s reversal on cryptocurrency at a conference in Texas last week. “I’m glad he did it and I hope President Biden does too.”
Biden last week issued a rare veto of a crypto industry-backed resolution that would have overturned the Securities and Exchange Commission’s new guidance on cryptocurrencies. “Appropriate safeguards that protect consumers and investors are needed to realize the potential benefits and opportunities of cryptoasset innovation,” Biden said in his veto message.
A former Biden administration financial regulator who now analyzes the crypto industry in the private sector but was not authorized to speak publicly said the industry is not convinced that Trump will be a reliable ally given his track record. The industry has been frustrated by what it sees as hostile rhetoric from Biden’s regulators.
“There is a big fight in the industry right now over whether [Trump’s shift] It’s legit. A lot of people are saying, ‘Don’t assume it is, since it’s Trump.’ But others are saying, ‘He’s saying good things while the Biden admin isn’t, so it’s hard not to be convinced by that.'”
“The Biden admin kind of fucked up here,” the former administration official added, pointing to comments seen as a mockery of the industry by SEC Chairman Gary Gensler. “I love them, I support them, I will vote for them. But Gary [rehtoric] … It’s losing confidence, losing votes.”
Last month, Gensler he said “The crypto industry’s history of failures, fraud, and bankruptcies” came about because “many participants in the crypto industry don’t play by the rules.”
Mark Cuban, the billionaire Democrat, warned Biden in an X response that he “has to choose between Gensler or crypto voters or it could cost him the White House.”
Several Democratic congressional leaders voted in favor of the resolution vetoed by Biden, including the Senate majority leader Chuck Schumer – whose state, New York, is the country’s financial capital – and the majority of Democratic senators up for re-election this year.
Despite the fall of politically active crypto moguls like Sam Bankman-Fried, the industry has been expanding dramatically its political footprint in Washington as the industry faces new regulatory threats from Congress and the SEC.
A large industry-aligned super PAC, Fairshake, has already raised US$93 million and spent more than $40 million, according to campaign finance reports. That included $10 million in California’s Democratic Senate primary to help defeat Rep. Katie Porter, D-Calif., a Warren protégé who has been leading the effort in Congress to apply stricter protections to the new industry.
Still, cryptocurrency’s broader appeal is likely limited.
According to a 2023 Pew Research Center survey, only 17% of Americans said they have ever traded or invested in cryptocurrency. And three-quarters of people who knew about cryptocurrencies said they were not confident in their security and reliability.
But the survey also showed that cryptocurrency users are younger, male and racially diverse — a key voter segment that Biden, Trump and Kennedy are competing for.
Trump has yet to elaborate on the policy details, but his rhetorical about-face is being interpreted by the multibillion-dollar industry as a clear sign that he would have a friendlier regulatory climate in Washington under Trump.
Brian Morgenstern, head of public policy at Riot Platforms, a bitcoin mining company with a market cap of $3 billion, published an opinion article in Bitcoin Magazine after meeting with Trump this week, declaring the Republican the “best choice for Bitcoin.”
“The choice is clear. President Trump will protect your right to own Bitcoin, to mine Bitcoin, to transact with Bitcoin,” he wrote, adding that the Biden administration “has been extraordinarily hostile to Bitcoin.”
This story originally appeared on NBCNews.com read the full story
