Donald Trump and the Republican Party are seeking to garner support from the cryptocurrency community at the ‘Bitcoin 2024’ conference, reflecting a shift in political strategies towards digital assets.
In a striking turn of events, former U.S. President and Republican nominee Donald Trump, once a vocal critic of cryptocurrency, is set to headline the ‘Bitcoin 2024’ conference in Nashville. Trump’s previous remarks in 2021, dismissing cryptocurrency as a “scam,” stand in sharp contrast to his current engagement with one of the industry’s largest gatherings.
Trump will speak on the final day of the three-day convention, joining a lineup that includes Independent U.S. presidential candidate Robert F. Kennedy Jr., former Republican candidate Vivek Ramaswamy, and Senators Bill Hagerty of Tennessee and Cynthia Lummis of Wyoming. Notably, U.S. Representative Ro Khanna of California will represent the Democratic Party at the event.
The cryptocurrency industry has shown remarkable resilience following the 2022 collapse of FTX and other major crypto firms. Proponents of digital assets argue that cryptocurrency users are emerging as a significant political force in the upcoming election, though it remains uncertain how many will prioritize crypto over other issues at the polls.
The Republican Party is actively courting these voters by advocating for lighter regulation, potentially aligning a currency designed to bypass government oversight with a major U.S. political party. David Yermack, a professor at New York University’s Stern School of Business, observed, “For most of its history, crypto was really a nonpartisan issue because Republicans and Democrats alike did not understand it or care to learn more. I do think the Republicans in the last year or two have begun to move a little more quickly in the area.”
Stand With Crypto, a nonprofit industry group supported by the crypto exchange Coinbase, has mobilized over 1.3 million advocates. Additionally, three significant pro-crypto super political action committees—Fairshake, Defend American Jobs, and Protect Progress—have collectively raised over $230 million to support crypto-friendly candidates.
This influence is already making an impact. Fairshake has spent over $10 million this year against California progressive Democrat Katie Porter, who lost her Senate primary after questioning bitcoin mining’s environmental impact. Some high-profile crypto advocates, including the billionaire Winklevoss twins, have expressed support for Trump. They each donated $1 million in bitcoin to his campaign but had to retract the funds due to federal contribution limits.
Despite the enthusiasm within the industry, the Federal Reserve reported a decline in crypto ownership among U.S. adults, from 12% in 2021 to 7% in 2023. Critics like Dennis Kelleher, CEO of Washington advocacy group Better Markets, argue, “It’s pretty clear what the industry wants is to buy as many politicians as possible to hijack the agenda of the American people and put their special interests on the top. Their special interest is, of course, having little or no regulation.”
The convention’s growing political attendance reflects the increasing significance of cryptocurrency in American politics. One attendee remarked, “There’s a joke going around that the list of speakers looks like the RNC Lite,” referring to the Republican National Convention held earlier this month.
Trump’s participation at Bitcoin 2024 highlights his evolving stance on the industry. At a June fundraiser in San Francisco, he criticized Democratic efforts to regulate the sector and met with bitcoin mining companies at his Mar-a-Lago resort. “We have tried to engage with the Biden administration and they have not been receptive unfortunately,” said Jayson Browder, head of public policy for Marathon Digital Holdings, who attended the Mar-a-Lago meeting. “And former President Trump has been more than receptive and is now being an active supporter of our industry.”
Trump has also indicated a desire to see more bitcoin mining by U.S. firms, aligning with industry frustration over the Securities and Exchange Commission’s (SEC) enforcement actions under President Joe Biden. The SEC has accused several crypto companies, including Coinbase and Binance, of trading unregistered securities, a claim the firms deny.
The White House has stated that the Biden-Harris administration will continue to work with Congress to develop necessary safeguards for crypto-asset innovation. Vice President Kamala Harris is expected to uphold Biden’s crypto policies if she wins the presidential election in November.
Neither the Trump nor Harris campaigns immediately responded to requests for comment. Investors betting on a potential second Trump presidency are increasingly turning to crypto, viewing it as the most direct way to capitalize on the ‘Trump trade.’
Hillary Adler, co-founder of BitcoinOS and a former Democratic voter now identifying as a left libertarian, noted, “The Republicans have always had better long-tail strategies, politically. Now, they care about crypto.”
