On November 5th, Americans will go to the polls to choose their next president. The upcoming election is expected to be a close race due to increased polarization among voters and generally low voter turnout.
As election day approaches, presidential candidates are vying for the public’s trust and making promises of a better future. Interestingly, cryptocurrency has become entangled in the political landscape.
Former President Donald Trump appears to have changed his stance on crypto, adopting a more conciliatory position and pledging a positive future for the cryptocurrency industry in the United States.
However, the question remains: is Trump truly supportive of crypto, or is he using it as a political tool to secure votes as the election draws nearer?
During his presidency, Trump was generally critical of cryptocurrencies. Like many politicians, he raised common concerns, such as crypto being “based on thin air” and its association with illegal activities.
But as the 2024 elections approach, Trump has shifted his narrative. In a surprising move, he accused President Biden and the head of the Securities and Exchange Commission, Gary Gensler, of conspiring against cryptocurrencies during an event for holders of his nonfungible tokens (NFTs). Trump presented himself as the alternative choice for pro-crypto voters.
This shift in Trump’s stance on crypto follows the Biden administration’s threat to veto the H.J.Res. 109 SEC crypto bill, which would allow U.S.-regulated financial institutions to custody cryptocurrencies. Influential crypto advocates, including Ethereum co-founder Charles Hoskinson, have criticized Biden’s policy, accusing it of harming the industry.
Ryan Selkis, founder and CEO of blockchain analytics firm Messari, claimed that if Biden is reelected, the crypto industry will face hostile regulations.
Trump has capitalized on the crypto community’s dissatisfaction with Biden, stating that “crypto is moving out of the U.S. because of hostility toward crypto.” He believes that to keep the crypto industry in the U.S., it must be allowed to thrive.
However, some in the crypto community remain skeptical of Trump’s true intentions. Mónica Taher, the former tech and business innovation director for the government of El Salvador, believes that politicians like Trump are using crypto to elevate their status and present themselves as innovators. She points out that Trump, despite his initial opposition to cryptocurrencies, is now accepting donations in this form.
Trump’s campaign has been facing financial difficulties as it defends the former president against multiple legal charges. Crypto could provide a way for the campaign to receive much-needed funding.
Andrew M. Bailey, co-author of “Resistance Money” and a fellow at the Bitcoin Policy Institute, believes that Trump’s pro-crypto stance falls in line with his pattern of making positive statements about crypto without providing concrete plans. However, Bailey acknowledges that Trump’s bid to court the crypto vote, even if insincere, could prove effective.
Taher advises trusting politicians who genuinely educate their constituents about the benefits of the crypto industry, rather than those who use it as a marketing ploy.
Regardless of Trump’s motivations, he may find himself with a new voting block. A poll conducted by Paradigm showed that 19% of registered U.S. voters own crypto, indicating that it is not a niche subgroup. These crypto holders are willing to switch parties, with 48% supporting Trump in 2024 but only 39% voting for him in 2020. Their votes could be crucial in swing states, which receive significant attention from both parties during elections.
While crypto is not the only issue on the ballot in November, the DGC survey suggests that a candidate’s stance on crypto is important to a significant portion of voters. Many respondents expressed concerns about overregulation and the lack of understanding among policymakers.
As the November elections approach, candidates may adjust their positions on crypto, and Trump’s legal troubles may further develop. To secure the support of crypto holders, Trump will need to convince voters that he is a true advocate for the industry by offering concrete plans.
Otherwise, his promises may be seen as empty rhetoric, just like those of many politicians before him.