The famous US hedge fund SkyBridge Capital chose to include Bitcoin in its investment portfolio in 2020, becoming one of the earliest traditional financial companies to embrace cryptocurrencies.

Recently, SkyBridge Capital founder Anthony Scaramucci and well-known financial and blockchain opinion leader Anthony Pompliano engaged in a conversation, sharing his journey of leading the company's transformation to embrace Bitcoin, his complex views on Trump's potential return to the White House, and his profound insights into current crypto regulation and political landscape.

BlockTempo has compiled the highlights of this conversation for readers:

Turning Point: SkyBridge Capital's Bitcoin Transformation Path

At the beginning of the interview, Scaramucci responded to the question "Why did SkyBridge transform towards digital assets?"

He stated that, as Anthony Pompliano mentioned, SkyBridge's original model was like a "typewriter business" that was gradually declining as clients increasingly preferred direct investment and fund companies enhanced their marketing capabilities. Facing the situation of "adapt or die," SkyBridge had to find a new path.

Scaramucci recalled that they realized the layered fees in the traditional model were no longer appealing to clients and needed to shift to a lower-fee fund structure. Simultaneously, they were looking for emerging opportunities at the macro level that could benefit both clients and the company. It was at this point that Bitcoin and cryptocurrencies came into his view:

We incorporated Bitcoin into our investment portfolio in October 2020, which was an extremely controversial decision.

At the time, SkyBridge was managing about $3 billion in assets, with approximately 10% being partners' own funds, which meant their interests were highly aligned with clients. However, this decision angered many clients, especially institutional investors and high-net-worth individuals accustomed to the traditional financial system.

The subsequent market experienced intense volatility, and investors' evaluations of Scaramucci and SkyBridge were like a roller coaster:

• In 2021, as Bitcoin prices soared, clients called to praise them as "geniuses".
• In the 2022 bear market, the same clients called to denounce them as "idiots". Scaramucci wryly said: "We went from geniuses to idiots."
• Worse, a scathing negative report at the end of 2022, resembling a "financial obituary," severely impacted SkyBridge, leading to massive client loss. Scaramucci candidly admitted: "That was probably the lowest point of our business."

Fortunately, the final result proved his choice correct. SkyBridge's business rebounded about threefold from the bottom, ultimately bringing substantial returns for clients who chose to stay and the company's own funds. Scaramucci, a 36-year Wall Street veteran, evaluated the company's business transformation, emphasizing that embracing a new asset like Bitcoin was far from easy and full of challenges and growing pains:

On the surface, the path seemed clear, but we experienced massive client attrition.

When we did this, I felt like a spokesperson for 'rat poison squared', and it wasn't pleasant.

Trump's Return 'Buffet': Crypto's Opportunities and Macro Risks

After discussing SkyBridge Capital's Bitcoin transformation, the conversation turned to US politics, especially the potential impact of President Trump on the cryptocurrency realm.

Regarding Trump's return, Scaramucci, who served as White House Communications Director for 11 days during Trump's first term (the shortest-serving White House official in history), first stated:

Choosing Trump is like facing an entire buffet table.

He explained that you might like certain dishes on the buffet, such as supporting crypto regulatory relaxation, ending potential "stifling action 2.0" against the crypto industry, or reducing state and local income tax deduction restrictions. However, you must also accept the entire table of dishes - meaning you might simultaneously get things you don't want.

Scaramucci mentioned Trump launching his official meme coin, directly stating that "possibly within 48 hours of someone becoming the leader of the free world, a meme coin named after him will be issued, and he and his associates will rake in $500 million."

Besides this potential scandal risk, Scaramucci mentioned Trump's past controversial remarks and actions, such as suggesting Canada become the 51st state of the United States, discussing purchasing Greenland, renaming the Gulf of Mexico as the American Gulf, publicly criticizing Western allies, and his recent treatment of Ukrainian President Zelensky in the Oval Office.

Scaramucci believes that Trump's "America First" strategy and isolationist tendencies, from a macro perspective, pose a threat to the free order of the United States and even the global community. He believes that the role the United States has played globally over the past 80 years, though not perfect, has generally supported global common development, improved living standards, and even accepted some trade inequalities to support other free democratic countries:

Our country has 4% of the world's population but contributes 26% of global GDP.

If this diverse nation built on ideals now wants to retreat from the world stage, believing this is beneficial to America and its future, it absolutely shows no historical research and no understanding of historical momentum.

Finally, Scaramucci acknowledged that there might be crypto-friendly individuals in Trump's team, which could be beneficial to the industry in the short term, but he strongly urged people to consider the long-term dangers of this macro shift, and he is more concerned about the overall direction of the country:

I might need to send Trump a Christmas card; my Bitcoin rose from $69,000 to around $85,000. But honestly, Trump's current position is largely 'credited' to the Democratic Party's own chaos.

The Democratic Party's Dilemma and the Political Power of Cryptocurrency

Regarding the Democratic Party's failure in facing Trump's camp, Scaramucci bluntly criticized their missteps on the cryptocurrency issue. He believes the Democratic Party needs to undergo "radical moderation", attracting more centrists and even discontented former Republican Party members to expand their political territory. He thinks the Democratic Party is constrained by certain ideological limitations, refusing opportunities to collaborate with former Republican officials associated with Trump.

Additionally, Scaramucci specifically mentioned the severe regulatory actions against the crypto industry initiated by Senator Elizabeth Warren and SEC Chairman Gary Gensler. He cited Scott Melker's perspective, believing this "holy war" is largely due to the collapse caused by FTX founder Sam Bankman-Fried (SBF).

Reportedly, Warren and Gensler had close contact with SBF and his family, even nearly approving some of FTX's businesses. SBF's downfall left them embarrassed, and to protect themselves, they launched a "reckless and arbitrary" suppression of the entire industry.

In contrast, he praised Trump for keenly grasping this point, recognizing the potential political power and financial strength of the crypto community (possibly with millions of wallet addresses and potentially investing $250 million in support). "Trump asked, 'OK, what should I say to those people in Nashville (possibly referring to a crypto conference)? Give me the script.' You must admire his political intuition."

He concluded that the Democratic Party's failure to anticipate the power of the crypto industry demonstrates their "dereliction of duty" in understanding market dynamics. He suggested that the Democratic Party should at least adopt a neutral stance towards Bitcoin.