Five years ago in 2019, then-US President Trump tweeted that he "does not like Bitcoin and other cryptocurrencies because they are not currencies, their value is highly volatile and have no real basis." In 2021, he called Bitcoin a "scam" in a media interview after leaving office.
Five years later, with his fundraising numbers falling behind Biden's, Trump opened a cryptocurrency donation website on May 22 to officially accept cryptocurrency donations. In his statement, he said he would lead his "cryptocurrency army" to "push the campaign to victory on November 5 (election day)."
Focusing on the election situation, people of color and young people were the key to Biden's victory in the 2020 election. Institutional polls show that these two groups currently have higher cryptocurrency ownership rates than other groups, but now there is a view that whether Biden can win their votes has become increasingly challenging.
Trump officially opens crypto donation window, supports 8 digital currencies
On May 22, Trump's campaign team launched the website https://www.donaldjtrump.com/crypto, where interested and qualified donors can donate to Trump's joint fundraising committee through Coinbase. Trump's team said in a website statement that Trump is the first "major party presidential candidate" to accept digital currency.
In this statement, Trump showed his campaign rhetoric: "In attacking cryptocurrencies, Biden surrogate Elizabeth Warren said she is building an 'Anti-Crypto Army' to limit Americans' rights to make their own financial choices. Now, MAGA supporters with new crypto choices will build a crypto army to carry the campaign to victory on November 5th!"
The newly opened website page shows that the Trump team accepts donations in 8 tokens: Bitcoin, ETH, Doge, Shiba Inu, XRP, USDC, SOL and 0x (ZRX).
Earlier this month, Trump announced that he would accept cryptocurrency donations. According to the rules, the Federal Election Commission approved political action committees (PACs) to accept cryptocurrency donations in 2014, and determined that crypto donations fall within the scope of the Federal Election Campaign Act, which defines donations as "any contribution of value made by any person to influence an election for federal office."
Meanwhile, Trump appears to be closing in on incumbent President Joe Biden's lead in fundraising. Trump's campaign and the Republican National Committee reported on May 20 that they raised $76 million in April, about $10 million more than their March total and about $25 million more than the $51 million Biden and the Democratic National Committee reported raising in April. Biden's March total, however, was over $90 million.
Data from the U.S. Federal Election Commission shows that during this election cycle, Biden's team has raised $183 million, and as of the end of April, Biden's team had $84.5 million in cash; Trump's team has raised $124 million, and as of the end of April, Trump's team had $48 million in cash.
Trump has been conflicted about cryptocurrencies in the past, but he is showing off his "weapons" against Biden
During his presidency, he once said that he "doesn't like Bitcoin and other cryptocurrencies." Now, his attitude towards the crypto industry has undergone a 180-degree change.
In June 2021, Trump, who left office, expressed skepticism about Bitcoin, calling it a "scam" on Fox News and saying he preferred the U.S. dollar as a global currency. However, during the campaign, rivals Vivek Ramaswamy and Ron DeSantis made remarks about central bank digital currencies (CBDCs). Trump announced at a campaign event in January 2024 that he would never allow a CBDC to be created in the United States.
Back on July 11, 2019, then-President Trump slammed Facebook's plan to create a digital currency called Libra, saying it had "little status or reliability."
On the evening of July 11, 2019, in a series of tweets, Trump said that he was “not a fan of Bitcoin and other cryptocurrencies because they are not money, their value is highly volatile, and have no basis in reality.” He also added that “unregulated crypto assets” can facilitate the drug trade and other illegal activity…”
Nevertheless, five years later, Trump's attitude has changed 180 degrees, and he has invested in cryptocurrencies with practical actions. According to Forbes estimates, about $3 million of his current $7 billion net worth is in cryptocurrencies. He launched a set of NFT "trading cards" in December 2022. In recent months, he has frequently shown goodwill to the crypto industry, hosting a dinner for cryptocurrency supporters at Mar-a-Lago earlier this month and warning them that "it's better to vote for him," otherwise they will face more regulatory measures from the Biden administration.
“It’s really remarkable how much he’s done a 180-degree turn on cryptocurrency in the years since he left office,” Cody Carbone, chief policy officer at the Digital Chamber, a cryptocurrency advocacy group, recently told Politico.
At a Fox News conference this year, South Carolina Senator Tim Scott, who appeared with Trump, asked host Laura Ingraham whether the next logical step would be for him to embrace Bitcoin, given that it is decentralized, out of government control, and that many young people are particularly interested in it.
Trump said: "I always like a currency. I call it a currency. I like the dollar, but a lot of people are using (Bitcoin), and frankly, it's becoming more and more difficult to ignore... You may have to do some regulation, but a lot of people are embracing it. And more and more, I see people wanting to pay with Bitcoin, and you're going to see some interesting things, so I can accept it, either way."
At present, partly influenced by Trump's position, in order to win over crypto voters and swing states, the Democratic Party's attitude towards cryptocurrencies and the industry has loosened.
Just as Trump announced his acceptance of crypto donations, in terms of regulation, the views of politicians from both parties in the United States on cryptocurrencies are colliding fiercely. On May 23, according to CoinDesk, the U.S. House of Representatives passed the 21st Century Financial Innovation and Technology Act (FIT21) by 279 votes to 136. 71 Democrats and 208 Republicans voted in favor, and 3 Republicans and 133 Democrats voted against. The bill will then be submitted to the Senate for a vote. The FIT21 bill, mainly driven by Republicans in the House of Representatives, will establish a regulatory system for the U.S. crypto market and set up consumer protection. The legislation will transfer regulatory power over digital currencies from the Securities and Exchange Commission (SEC) to the more industry-friendly Commodity Futures Trading Commission (CFTC). And it will more clearly define the standards that make crypto tokens securities or commodities.
The crypto industry has lobbied heavily for the bill. U.S. President Biden has announced that he will not veto the bill. In addition, the Biden administration issued a statement calling on Congress to work together on a "comprehensive and balanced regulatory framework for digital assets."
The competition between the two candidates has become increasingly fierce. On May 22, the Washington Times reported that Biden's re-election campaign is hiring an "emoji manager" to manage Internet content and emojis (including memes) because of the difficulties the team has encountered in attracting Generation Z voters. The recruitment information posted on Daybook shows that this position will be responsible for the online content of the campaign, including the production and management of emojis.
What is the current election situation? In early May, a poll released by DCG and The Harris Poll showed that more than 20% of voters in six key swing states considered cryptocurrency an important issue. Another nationwide survey of registered voters commissioned by the crypto company Paradigm found that cryptocurrency ownership is higher among people of color and young people, groups that were key voters who helped Biden win in 2020 but are now becoming challenging for him.
The Paradigm survey found that cryptocurrency holders prefer Trump over Biden this year, 48% to 39%, with 13% undecided.