Source: Bloomberg
Compiled by: BitpushNews Yanan
In 2019, then-President Donald Trump publicly expressed his disdain for cryptocurrencies, believing that the value of these digital currencies was based on air, and worse, could provide a breeding ground for drug trafficking and other illegal activities.
However, five years later, millions of dollars in donations have been made, and another fierce presidential campaign is about to begin. Now, with less than four months to go before the election, cryptocurrency advocates have successfully won the support of Trump, the Republican presidential nominee. They hope that Trump's political fortunes will turn around after the failed assassination attempt on July 13, bringing more positive effects to the cryptocurrency field.
As the prospect of Trump's re-election as president becomes clearer, the crypto industry's expectations for his re-election are becoming increasingly prominent. Looking back at Joe Biden 's administration, U.S. regulators have launched an unprecedented crackdown on cryptocurrency companies after the collapse of the FTX exchange and a series of scandals, bankruptcies and criminal cases.
"During the Trump administration, we have never seen banking regulators force banks to close the accounts of cryptocurrency companies." Brian Morgensten, head of public policy at cryptocurrency miner Riot Platforms Inc., who served in the White House and Treasury Department during Trump's administration, further stated, "Similarly, Trump will not use the Department of Energy to target Bitcoin miners." This statement reflects the crypto industry's high expectations for the policy environment after Trump's re-election.
Although the details of Trump's cryptocurrency policy have not yet been fully revealed, his public remarks, echoed by the Republican National Convention platform, have vaguely outlined the contours of potential winners and losers. He has vowed to vigorously promote Bitcoin mining in the United States, defend the management and control of individuals over their cryptocurrency holdings, and resolutely prevent the Federal Reserve from issuing central bank digital currencies ( CBDCs ) that may compete with cryptocurrencies. Brian Hughes, a senior adviser to the campaign, revealed in a statement that the former president is eager for the United States to take the lead in the development of new technologies.
"Cryptocurrency innovators, as well as innovators in other areas of technology, are facing a daunting challenge from Biden and the Democrats," Hughes said meaningfully. "Biden is trying to stifle innovation through onerous regulation and high taxes, while President Trump is poised to lead the United States to new glory in this and other emerging technologies."
Bitcoin Speech
More details about Trump's plan may be made public at this week's Republican convention, and Trump himself is scheduled to give a major speech at the Bitcoin 2024 conference on July 27. His former Republican primary rival, entrepreneur Vivek Ramaswamy, revealed that he had discussed in depth with Trump what cryptocurrency policy should look like, a move that undoubtedly responded to the general call in the cryptocurrency field - although the government has taken many enforcement actions to make its position clear, the industry's regulatory laws still need to be further clarified.
"People have the right to know the specific rules they should follow," Ramaswamy stressed in an interview. "People may have different views on the rules themselves, but we should not have any disagreement on whether people should know these rules."
Ramaswamy is far from the only person to advise Trump on cryptocurrencies. His vice presidential pick, Republican Senator JD Vance of Ohio, has long been an active advocate of cryptocurrencies. In addition, the former president has also had in-depth exchanges with Tesla Inc. CEO Elon Musk on the topic.
In May, Trump met with buyers of digital trading cards featuring him at his Mar-a-Lago Club, and hosted representatives of Bitcoin miners there last month. At the time, Trump, along with several policy advisers and Republican Senator Bill Hagerty of Tennessee, met with executives from about eight cryptocurrency miners, including representatives from Marathon Digital Holdings, CleanSpark and Riot . According to Jayson Browder, senior vice president of government affairs at Marathon Digital Holdings, important topics of discussion included central bank digital currencies (CBDCs), competition between China and the United States, and energy consumption and environmental issues for miners. Notably, the same week they met with Trump, several of the largest miners also announced their support for the Bitcoin Voter Project, which aims to use cryptocurrency to influence voters.
At the same time, some right-wing think tanks, such as the Heritage Foundation, and Trump's Republican allies in Congress have also expressed more in-depth insights on the issue.
A shared vision: Cryptocurrency in the Republican Party platform
On July 10, Senator Bill Hagerty revealed his in-depth discussion with Trump on the cryptocurrency industry on Bloomberg's "Checks and Balances." He said: "I have invested a lot of time with the president in discussing this industry and the phenomena we have observed, and I firmly believe that we have a common vision embedded in our Republican platform."
Hagerty went further, stating that cryptocurrency is a "decisive issue" in the election. He stressed: "We have an innovation gene that surpasses other countries. This is our advantage, and we should make full use of it."
According to close allies, campaign advisers and cryptocurrency industry executives who have discussed this issue with him, Trump's change of stance on cryptocurrency is not accidental, but is driven by a variety of factors, including the industry's growing political influence and fundraising appeal. Trump's campaign team also confirmed that this change of stance is the natural result of his contact with knowledgeable and well-connected people in the cryptocurrency field.
It is worth noting that the Gemini cryptocurrency exchange founded by billionaire twin brothers Cameron Winklevoss and Tyler Winklevoss, whose financial support for Trump coincides with Trump's ideas, adds more explanation to this change of position.
Cryptocurrency becomes a wedge issue: Trump and Biden compete for young investors
The cryptocurrency industry is hoping that Trump's support for crypto assets will strike a chord with a broad range of voters, not just deep-pocketed donors. A recent poll by crypto venture capital firm Paradigm revealed the potential impact of this strategy: 28% of Republicans said they had invested, traded or used cryptocurrencies, while 13% of Republicans who had not originally intended to support Trump revealed that Trump's new stance on cryptocurrencies could change their voting intentions. It is worth noting that many cryptocurrency investors are under the age of 40, which happens to be the voter group that presidential candidates have been eager to win over.
“Trump has sensed this potential divide among voters and sees it as a key wedge issue,” Marathon’s Browder said after meeting with Trump. “From a political strategy perspective, it makes perfect sense: We are confident that these voters will support us and cast their votes.”
With the election approaching and the outcome likely to be decided by only a small number of voters in swing states, even the Biden administration has opened its doors to the cryptocurrency industry. Last week, about 30 cryptocurrency industry leaders, including Ripple CEO Brad Garlinghouse and Coinbase Global Inc. Chief Legal Officer Paul Grewal, met with White House advisers to express the industry's dissatisfaction and clearly put forward specific requests for policy changes. Coinbase, on the other hand, emphasized that they do not directly participate in political activities, but support candidates from both parties who are friendly to cryptocurrency. At the same time, they also support the Fairshake Super Political Action Committee (SuperPAC) to push candidates who oppose cryptocurrency out of office.
The current donations and attention come as the cryptocurrency market is in the midst of a boom. Many cryptocurrency companies that survived the last bear market are now seeing new growth opportunities. For example, Bitcoin prices reached an all-time high in March after the launch of an ETF in January. Coinbase's stock price has risen about 40% since the beginning of the year, while MicroStrategy Inc., the world's largest corporate bitcoin holder, has more than doubled.
However, behind this glamor, the cryptocurrency industry faces serious challenges. The fate, and even the survival, of many businesses is threatened by ongoing government lawsuits and other regulatory crackdowns. From Coinbase, the largest exchange in the United States, to the decentralized exchange Uniswap , almost all large cryptocurrency companies have not been immune to enforcement actions and investigations, especially from the close scrutiny of the U.S. Securities and Exchange Commission ( SEC ). At the same time, banking regulators have also set up many obstacles for cryptocurrency companies to open and maintain bank accounts.
In addition, other industries closely related to cryptocurrencies, such as miners, have also expressed their own grievances against the Biden administration. For example, the Biden administration proposed to impose a consumption tax on mining activities, a policy that undoubtedly puts additional pressure on miners.
Faced with this series of challenges, industry insiders are eager for the new administration to take action. They expect to address these issues through executive orders or the appointment of a new SEC chairman who supports cryptocurrency.
Hooray, Bitcoin!
Still, there is uncertainty about how long Trump's enthusiasm for crypto assets can last. After all, the cryptocurrency market is known for its volatility and unpredictability. Many variables could happen between now and the start of the next presidential term that could renew Trump's resistance to an asset class that is "famous" for scandals and pie-in-the-sky valuations.
However, at least for now, cryptocurrency industry executives are heartened by Trump’s comments. They are happy to hear Trump’s long-awaited voice.
“All Trump had to do was say ‘Hooray, Bitcoin!’ and that was enough to ignite enthusiasm in our space,” said Dan Tapiero , who runs digital asset investment firms 1RoundTable Partners and 10T Holdings . “That was the minimum he needed to meet, and he did it.”
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