In a sharp reversal, former President Donald Trump embraced the cryptocurrencies he once reviled, seeking to outflank rivals Joe Biden and Robert F. Kennedy Jr. among the technology’s devoted young fan base — and its deep-pocketed leaders.
Hours after meeting with Bitcoin miners at his Mar-a-Lago estate in Florida on Wednesday, the former president said on his social media platform Truth Social that cryptocurrency users should “vote for Trump!” because he will resist “Biden’s hatred of Bitcoin.”
The statement came after weeks of concerted outreach to crypto enthusiasts and executives in this booming industry – and it already appears to be paying off. A Bitcoin mining executive who met with Trump told CNBC that his industry has pledged to raise more than $100 million and mobilize 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 very volatile and based on nothing,” he said in a series of posts on social media in 2019 while he was still in office. “Unregulated crypto assets can facilitate illegal behavior, including drug trafficking and other illegal activities.”
“We only have one real currency in the United States,” Trump continued, “and it always will be. We call it the American dollar!”
Trump maintained this position after leaving office and as recently as 2021, when he told Fox Business in an interview that bitcoin “seems to be a scam.” In another interview with the network, he said cryptocurrencies seemed like a “disaster waiting to happen.”
“I don’t think we should have all the bitcoins in the world. 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 had changed a bit as the price of bitcoin rebounded after a series of scandals and setbacks, saying the crypto was becoming more entrenched and that he was “not sure if he wanted to take it off.” at this point.”
By May, Trump had completed his evolution into a fierce cryptocurrency evangelist in the run-up to the Libertarian Party’s national convention in Washington, where he and Kennedy spoke.
In a speech to Libertarians that was frequently interrupted by boos and jeers, Trump was applauded for promising to “end Joe Biden’s crusade to crush crypto.”
“I will ensure that the future of crypto and bitcoin is in the United States and not abroad. I will support the right to self-custody for the country’s 50 million crypto holders,” he added. “Thanks to your vote, I will keep Elizabeth Warren and her minions away from your bitcoin. And I will never allow the creation of a central bank digital currency.
Because mining requires enormous amounts of energy, Trump is now framing crypto as a national and energy security issue, including for the fossil fuel industry he has promised to defend.
His campaign also announced that it would become the first major presidential campaign in history to accept cryptocurrency donations, pledging to “build a crypto army to advance the campaign to victory on November 5.”
The move comes as Trump’s campaign is confident it can draw some young voters — particularly young men of color — away from their traditional homes in the Democratic Party and as Trump and his allies step up their attacks on Kennedy.
Kennedy is a staunch supporter of cryptocurrencies whose first public appearance as a presidential candidate was 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 this week last. “I’m glad he did it, and I hope President Biden does it too.”
Biden issued a rare veto last week on a crypto industry-backed resolution that would have rolled back new Securities and Exchange Commission guidance on cryptocurrencies. “Appropriate safeguards that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset 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 was not convinced Trump would be a reliable ally , given his background. The industry has become frustrated with what it perceives as hostile rhetoric from Biden regulators.
“There is a big battle going on in the industry right now over whether (Trump’s change) is legitimate. A lot of people say, “Don’t assume that’s the case because it’s Trump.” But others say, “He says nice things while the Biden admin doesn’t, so it’s hard not to be convinced by that.” »
“The Biden admin is kind of screwed here,” the former administration staffer added, highlighting remarks seen as mocking the industry by SEC Chairman Gary Gensler. “I love them, I support them, I will vote for them. But Gary’s rhetoric…loses confidence, loses votes.”
Last month, Gensler said that “the crypto industry’s record of failures, frauds and bankruptcies” was because “many players in the crypto industry are not playing by the rules” .
Mark Cuban, the Democratic billionaire, warned Biden in a response on X that he “must choose between Gensler or crypto voters or it could cost him the White House.”
Several Democratic congressional leaders voted in favor of the resolution that Biden vetoed, including Senate Majority Leader Chuck Schumer — whose New York state is the nation’s financial capital — and most Democratic senators candidates for re-election this year.
Despite the fall of politically active crypto moguls like Sam Bankman-Fried, the industry has significantly expanded its political footprint in Washington as the industry faces new regulatory threats from Congress and the SEC.
Fairshake, a major industry-aligned super PAC, has already raised $93 million and spent more than $40 million, according to campaign finance reports. That included $10 million for California’s Democratic Senate primary to help defeat Rep. Katie Porter, D-Calif., a Warren protégé who has led congressional efforts to enforce tougher safeguards to the new industry.
Still, cryptocurrency’s broader appeal is likely limited.
According to a 2023 Pew Research Center survey, only 17% of Americans reported having ever traded or invested in cryptocurrencies. And three-quarters of people familiar with cryptocurrencies said they had no confidence in their security and reliability.
But the survey also showed that crypto users skew young, male, and racially diverse — a key segment of voters over which Biden, Trump, and Kennedy are all competing.
Trump has yet to detail the specifics of his policy, but his rhetorical about-face is being interpreted by the multibillion-dollar industry as a clear sign that the regulatory climate would be more favorable to 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 op-ed 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, mine Bitcoin, and transact with Bitcoin,” he wrote, while adding that the Biden administration “has been extraordinarily hostile to Bitcoin.”