Trump and Republicans Seek Crypto Support at ‘Bitcoin 2024’ Conference

Trump’s Shift on Cryptocurrency: From Critic to Conference Headliner

NASHVILLE – Donald Trump, the Republican nominee and former U.S. President, once labeled cryptocurrency a "scam." However, he is now set to be a prominent speaker at one of the industry’s largest conferences.

Trump, who made his critical remarks in 2021, will address attendees on Saturday, the final day of the three-day conference in Nashville. Notable figures such as independent presidential candidate Robert F. Kennedy Jr., former Republican candidate Vivek Ramaswamy, and Senators Bill Hagerty and Cynthia Lummis will also take the stage. Among Democrats, U.S. Representative Ro Khanna of California is listed as a speaker.

After facing a significant downturn in 2022, prompted by the collapse of the FTX exchange and several other crypto companies, the cryptocurrency sector has shown signs of recovery. Proponents of digital assets assert that the number of cryptocurrency users is becoming an increasingly influential political group this election season, although it remains uncertain how many will prioritize crypto-related issues at the polls.

The Republican Party is actively seeking to attract these voters by advocating for lighter regulations, thus establishing a connection between a currency designed to evade government oversight and a major U.S. political party.

"For much of its existence, crypto was essentially a nonpartisan issue," remarked David Yermack, a professor at New York University’s Stern School of Business, as both Republicans and Democrats largely overlooked it. "However, I believe Republicans have started to engage more actively in this area recently."

Stand With Crypto, a nonprofit organization supported by a cryptocurrency exchange, has mobilized over 1.3 million advocates in favor of the industry. Furthermore, three pro-crypto super political action committees—Fairshake, Defend American Jobs, and Protect Progress—have collectively raised over $230 million this election cycle to back candidates aligned with their interests.

The impact of these efforts is becoming evident. Fairshake has allocated over $10 million this year to oppose California Democrat Katie Porter, who has criticized bitcoin mining’s environmental impact. Porter subsequently lost her primary race.

Several crypto advocates, including billionaire twins Cameron and Tyler Winklevoss, who founded the cryptocurrency platform Gemini, have shown support for Trump. They initially donated $1 million each in bitcoin but had to retract the contributions due to federal limits.

According to recent reports, 7% of U.S. adults engaged with cryptocurrency in 2023, a decline of 3 percentage points from 2022 and 5 from 2021.

"It’s clear that the industry is attempting to influence as many politicians as possible to prioritize their interests," commented Dennis Kelleher, CEO of an advocacy group. "Their primary interest is to minimize regulations."

Despite past critiques, Trump’s participation at the Bitcoin 2024 conference indicates a shift in his stance. At a fundraiser in June, he criticized Democrats’ regulatory efforts and met with bitcoin mining executives at his Mar-a-Lago estate last month.

"We have sought to engage with the current administration but have not received a positive response," stated Jayson Browder, head of public policy for Marathon Digital Holdings, about the meeting. "In contrast, former President Trump has shown significant interest and support for our industry."

Recently, Trump has expressed a desire to see increased bitcoin mining by American companies.

Crypto executives are vocal about their frustrations with the Securities and Exchange Commission’s actions under the current administration. The regulatory body has alleged that various cryptocurrency firms, including a major exchange, are operating in ways that should have them classified as securities, which those firms dispute.

The White House has stated that the administration will continue to engage with stakeholders and collaborate with Congress to ensure necessary regulations are in place to promote the benefits of cryptocurrency innovation.

As the election approaches, traders banking on a Trump resurgence are gravitating toward asset classes likely to benefit from his policies. One investment expert noted that cryptocurrencies, particularly bitcoin, represent a straightforward method to capitalize on a potential "Trump trade."

At the conference, attendee Hillary Adler, a co-founder of a cryptocurrency operating system, expressed her views on the political shift. Although she has previously voted Democrat, she now identifies as left-leaning libertarian and remains undecided. Adler noted the growing Republican interest in crypto, stating, "The Republicans have typically better long-term strategies, and now they care about crypto."