Key takeaways

Once a critic of cryptocurrencies, Trump has adopted a more favorable stance to appeal to the growing base of crypto-supporting voters. His campaign’s acceptance of crypto donations is seen by many as a strategic move to capture this expanding demographic.

The 2024 Cryptocurrency Adoption and Sentiment Report shows a significant increase in US cryptocurrency ownership, with 40% of Americans now holding digital assets — up from 30% in 2023 — representing approximately 93 million people.

With a Republican-controlled Senate, Trump has greater leeway to introduce crypto-friendly regulations and has been vocal about his disapproval of the SEC chair’s actions against the crypto community.

The influence of the 93 million crypto holders is more politically impactful than ever, and Trump’s 2024 victory underscores the rising influence of crypto voters in shaping policy and electoral outcomes.

With Donald Trump returning as the 47th United States president, a renewed sense of optimism has emerged within the crypto community. This sentiment was reflected in the surge of crypto markets on Nov. 5, the day before election results were confirmed, with Bitcoin reaching prices above $75,000.

On Election Night at Mar-a-Lago, high-profile supporters joining Trump included Elon Musk, Robert F. Kennedy, Jr. and Howard Lutnick. Beyond their support for Trump, they share another common interest: crypto.

It’s no surprise — Trump held a favorable stance on cryptocurrency before the election, attracting significant campaign funding from crypto supporters in hopes of a regime that offers the industry a level playing field. With a Republican-controlled Senate taking shape, Trump will be in a position to ensure a crypto-friendly regulatory and business environment.

This article discusses how Trump’s views evolved regarding crypto, pointing out a complex relationship between Trump and the crypto world and how the votes of the crypto community have played a role in American elections in 2024.

Trump’s education and background

Donald Trump was born in 1946 into a real estate family in Queens, New York. He attended the Kew-Forest School before being sent to the New York Military Academy, where he graduated in 1964.

After two years of further schooling at Fordham University, Trump was sent to the University of Pennsylvania’s Wharton School, the institution’s business program. In 1968, he earned a Bachelor of Science in Economics. His father, Fred Trump, was a successful real estate developer, which influenced Trump’s interest in business from a young age.

Early in his career, Trump joined his family’s real estate company, the Trump Organization, which he finally took over in 1971. Under him, the business entered the upscale Manhattan real estate sector. Some of Trump’s most notable real estate ventures include the Trump Tower in New York City, the Mar-a-Lago estate in Florida, and a variety of hotel and casino ventures.

However, his business dealings have not been without controversy. Trump faced multiple bankruptcies in his casino businesses in the 1990s, which he managed by restructuring debt and rebranding.

Additionally, he expanded into various industries, including golf courses, branded products and entertainment. In 2004, Trump gained widespread fame as the host of the reality TV show The Apprentice, where his signature phrase, “You’re fired,” became a pop culture catchphrase.

Trump’s business and media experience have shaped his public persona and subsequent political career.

Did you know? A political action committee (PAC) supporting Trump raised about $7.5 million in cryptocurrencies, according to a Federal Election Commission filing submitted in October 2024.

Trump’s political career

Here’s a quick overview of Donald Trump’s political journey:

Entering politics: Trump officially stepped into politics in 2015, announcing his candidacy for the Republican nomination with a populist message focused on strict immigration policies, economic protectionism and an “America first” foreign policy.

2016 election victory: In 2016, Trump won the Republican nomination and went on to defeat Democratic candidate Hillary Clinton, becoming the 45th president of the United States.

Key achievements: During his presidency, Trump implemented major tax reforms, appointed three conservative justices to the Supreme Court, and launched a trade war with China to address trade imbalances.

Controversy and polarization: His presidency sparked intense debate, especially on immigration, foreign policy and COVID-19, leading to strong support from his base and sharp criticism from opponents.

Post-presidency influence: After his 2020 loss to Joe Biden, Trump maintained a significant presence in American politics, becoming a central figure in the Republican Party through endorsements and widely attended rallies.

Returns to office as 47th President: On Nov. 6, Trump declared victory, becoming the 47th president and pledging to lead America into a “golden age.”

Trump working to expand his constituency

Trump’s previous stance on cryptocurrency was largely negative. As a result, his administration did not pursue crypto-friendly policies, instead emphasizing the importance of the dollar as the dominant global currency.

Fast forward to 2024; his change of stance on cryptocurrencies is a dramatic departure from his previous hostile position. He had once described cryptocurrencies as a “disaster waiting to happen” and called Bitcoin a “scam,” claiming that it was an economic risk and lacked inherent worth.

But recent political and economic developments appear to have tempered Trump’s opinion about crypto. He adopted a pro-crypto stance, probably to increase his appeal to the growing number of enthusiastic voters about blockchain technology and digital assets. The change in Trump’s position indicates his understanding of cryptocurrency’s durability and potential to impact economies in the future.

Trump’s favorable views about crypto may herald policy changes, leading to a regulatory framework supporting innovation in the crypto arena and providing the right environment for crypto enterprises and investors.

How Trump embraced crypto

In 2022, Trump earned between $100,000 and $1 million from selling non-fungible token (NFT) trading cards. In May 2024, he held Ether worth more than $1 million. Investors have been buying memecoins launched by his admirers, such as the MAGA token, to express their support for him. On Nov. 6, 2024, MAGA was trading at $3.6.

In May 2024, Trump’s campaign announced it would accept cryptocurrency donations, including BTC, ETH, Dogecoin and other digital assets. Many cryptocurrency enthusiasts on social media welcomed the move, seeing it as a sign that crypto could become a major issue in the upcoming election. Trump’s opponents, however, argued that it was merely an opportunistic tactic.

In a significant development in May, the US House of Representatives approved the Financial Innovation and Technology for the 21st Century Act by a substantial margin of 279–136. The bill seeks to set up an encouraging regulatory framework for digital currencies despite an unusual warning from the US securities regulator regarding the potential of new financial risks. The bill was backed by the Republican Party, which Trump belongs to. The future of this legislation in the Senate remains uncertain.

In July 2024, speaking at the Bitcoin Conference in Nashville, the biggest Bitcoin conference of the year, Trump promised to fire Securities and Exchange Commission Chair Gary Gensler if elected to power and make the US the crypto capital of the world. Continuing his fervor for crypto, in September 2024, he launched World Liberty Financial, a crypto venture founded by two entrepreneurs new to running large-scale businesses.

Again, at the same conference, Trump said that if he got the second term in the White House, he would ensure that the federal government never sold off its Bitcoin holdings.

Moreover, he has pledged to free former Silk Road executive Ross Ulbricht, underscoring his commitment to a pro-digital agenda.

Did you know? The SEC ramped up its enforcement activity against cryptocurrency-related misconduct in 2023. The agency brought a total of 46 enforcement actions, a 53% increase from 2022 and a new record high since 2013.

How have crypto community votes been crucial in American elections in 2024?

With substantial numbers in America, the crypto community has been in a position to influence the outcome of elections. In 2022, the cryptocurrency market in the US was worth $1.19 billion. It is projected to expand at a compound annual growth rate of 12.0% between 2023 and 2030.

According to the 2024 Cryptocurrency Adoption and Sentiment Report, the proportion of American adults owning cryptocurrency has risen from 30% in 2023 to 40% as of September 2024. This equates to approximately 93 million individuals. The statistics suggest that the crypto community is no longer a niche group but a sizable demographic that influences public opinion and policies. The heft of the community seems to have convinced Trump to take a proactive stance regarding crypto.

With crypto holders seeking clear regulations and fair taxation, the political fraternity in the US has begun to make overtures to them and work to address their concerns. For example, Minnesota Republican Tom Emmer asserted that cryptocurrency was good for privacy and free markets.

Even Democrats such as Cory Booker highlighted how cryptocurrency might become a “democratizing” force that provides financial access for those who had previously been excluded from regular banking. Right-wing politicians with pro-crypto positions, such as Vivek Ramaswamy, found receptive audiences at crypto conferences.

As Trump’s win in the 2024 US elections has demonstrated, the crypto community has significantly shaped policy directions and shown the power of collective influence in the crypto space.

Aftermath of FTX fiasco and crypto’s resurgence in the US with Trump backing

At one point, cryptocurrency’s alignment with progressive ideals was bolstered by the success of FTX founder Sam Bankman-Fried, who became a major donor to Democratic candidates in the 2022 elections while championing financial inclusion and equitable access. Behind the scenes, Bankman-Fried was also funding both Republican and Democratic candidates in an effort to support more pro-crypto voices in government.

When FTX crashed, these politicians turned away from the industry. Worse, many Democratic politicians began to target cryptocurrency, labeling it to be a threat to the US economy. Democratic Senator Elizabeth Warren has been a prominent name among the US politicians who are against crypto.

A Biden appointee, SEC Chair Gary Gensler gathered a “reputation” for prosecuting crypto enterprises and suppressing the crypto economy in America. Many cryptocurrency enthusiasts felt Warren’s and Gensler’s anti-crypto initiatives were an existential danger to the crypto sector.

In a broader context, Trump’s endorsement of cryptocurrency means his presidency could be a welcome thing for the crypto industry. Before the election, his team had stated that accepting crypto donations was a component of its resistance to “socialistic government control” over the financial systems in the US. The statement declared, “President Trump stands ready to embrace new technologies while Biden piles regulations and red tape on all of us.”

Did you know? According to a Pew Research Center survey conducted Feb. 7–11, 2024, 61% of respondents in America reported owning cryptocurrency, representing a decline from the 69% who owned crypto in 2023.

Has Trump shown any real commitment to crypto?

Trump’s stance on cryptocurrencies appears more symbolic than a firm policy commitment to the industry. While his campaign’s acceptance of crypto donations and occasional pro-crypto rhetoric signal a willingness to engage with the industry, there’s little clarity on specific regulatory plans or long-term support. His prior views on cryptocurrency have been largely critical, particularly concerning Bitcoin and other decentralized assets.

A few months into his presidency will give a better insight into how Trump intends to regulate the crypto industry in the US. Key questions remain about his approach to balancing innovation with regulatory oversight and whether he will actively push for a crypto-friendly environment.

His administration’s stance on issues like digital asset regulation, potential stablecoin frameworks and the role of the US dollar will be telling indicators of his commitment to advancing crypto policies. Until then, Trump’s engagement with crypto may largely reflect political strategy rather than a deep, transformative commitment to the industry’s growth in the US.

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