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Is Donald Trump’s crypto-friendly stance genuine or opportunistic?
Last updated: May 17, 2024 04:10 EDT | 2 minute read
Presidential candidate Donald Trump recently expressed his support for cryptocurrencies, indicating that he would stop hostility towards cryptocurrencies in the United States if he were to be re-elected.
“If we want to embrace it, we have to leave them alone.” He also told the audience that if he likes cryptocurrencies, “you’d better vote for Trump.”
Previously, Trump had openly criticized Bitcoin and other cryptocurrencies. In July 2019 he described them as “not money” and condemned their volatility and lack of intrinsic value. Furthermore, he argued that these assets could facilitate illegal activities such as drug trafficking.
The role of cryptocurrencies in shaping voter preferences
According to Coinbase, approx 20% of American adults, or over 50 million individuals, claim to hold cryptocurrencies. Markus Levin, co-founder of XYO Network, said this large amount undoubtedly caught the attention of candidates.
“Embracing cryptocurrencies and robust cryptocurrency regulation is good electoral strategy and smart politics more generally,” he said. “Absolutely, a considerable number of people in the crypto community will vote for Trump based on his seemingly positive approach towards the industry.”
Meanwhile, Jonathan Thomas, CEO of prime brokerage Blueberry, said Trump’s pro-crypto stance will influence voters who will prioritize cryptocurrencies as a single-issue issue.
“This is something that some people care about and will vote for which candidate supports their biases,” he said. His pro-crypto speech will resonate with crypto enthusiasts, but only if he doesn’t clash with other issues they care about even more, she added.
Skepticism surrounding Donald Trump’s defense of cryptocurrencies
NFT enthusiast Thorne Melcher labeled Trump’s recent endorsement as “flimsy.” He noted that it marks a significant departure from his previous negative remarks.
“Given the potential of cryptocurrencies to facilitate the purchase of trans hormone replacement therapies, abortions and drugs that circumvent the politics pushed by conservatives, it seems only a matter of time before they involve them in their authoritarian crackdowns,” he said.
However, he noted that this does not imply that Biden is pro-cryptocurrency. However, supporting Trump solely for the sake of cryptocurrencies does not appear to offer any substantial benefits, and Trump himself is unlikely to gain much electoral support just by supporting them.
Trump’s strategy to draw crypto voters away from Biden
Once a cryptocurrency skeptic, Trump has now become a full-blown NFT enthusiast. He actively participates in the market, even selling NFTs worth over $1 million with his mug shot.
According to Stephanie Vaughan, co-founder of DeFi company Veda, it is evident that many people within the crypto community are inclined to support Trump or refrain from supporting Biden.
“I think during the last election there were probably a lot of crypto-focused voters who voted for Biden. Because at that time it wasn’t clear whether he would take such a tough approach against the industry,” she said.
“It is now clear, however, that regulation through enforcement is the position taken by the Biden administration. And this is completely impractical for a large number of people who work in the industry or who are generally supportive of it.”
He said Trump recognizes the emergence of cryptocurrencies as a significant factor for a sizable portion of voters in the upcoming election. As a result, he is making concerted efforts to distance them from Biden.