Mon. Jul 15th, 2024

From ‘scam’ to building a ‘crypto army’

By 37ci3 Jun15,2024

Former President Donald Trump has made a dramatic U-turn, embracing the once-maligned crypto-currencies as he seeks to outdo rivals Joe Biden and Robert F. Kennedy and their pocket leaders among the tech’s loyal young fan base.

Hours later meeting bitcoin miners the former president on Wednesday at his Mar-a-Lago estate in Florida He said this on Truth Social media platform that cryptocurrency users should vote for Trump because he will oppose “Biden’s hatred of Bitcoin.”

The announcement comes after weeks of joint outreach to cryptocurrency enthusiasts and people leading the burgeoning industry, and it looks like it’s already paying off. A bitcoin mining executive who met with Trump told CNBC said its industry has committed to raising more than $100 million and recruiting more than 5 million voters to help Trump this fall.

But just a few years ago, when Trump was in the White House, he made it clear that he was not a fan of bitcoin and other cryptocurrencies.

“I’m not a fan of Bitcoin and other crypto-currencies that aren’t money, are highly volatile, and are based on weather,” he said. series of social media posts While still in office in 2019. “Unregulated Crypto Assets can facilitate illegal behavior, including drug trafficking and other illegal activities.”

“We have only one real currency in the United States,” Trump continued, “and it will always remain that way. It’s called the US dollar!”

Trump kept this position after leaving office and in 2021 This was reported by Fox Business bitcoin “just seems like a scam” in an interview. In another interview with the network, he said that cryptocurrencies “a disaster waiting to happen.”

“I don’t think we should have all the bitcoins in the world. I think they should regulate them at a very, very high level,” Trump told Fox Business in August 2021.

Three months ago, in March, Trump told CNBC With the price of bitcoin rising again after a series of scandals and setbacks, he said his thinking has changed a bit and the cryptocurrency is getting stronger and he’s “not sure I want to take it at this point.”

By May, Trump had completed his evolution into an all-out cryptocurrency evangelist ahead of the Libertarian Party’s national convention in Washington, where both he and Kennedy spoke.

In a speech to libertarians that was often punctuated by boos and jeers, Trump won applause for promising to “stop Joe Biden’s crusade to crush crypto.”

“I will ensure that the future of cryptocurrency and bitcoin is made in the US, not abroad. I will support the right of the country’s 50 million crypto holders to self-regulate,” he added. “With your vote, I will keep Elizabeth Warren and her thugs out of your bitcoin. “I will never allow the creation of a central bank digital currency.”

Trump is now describing cryptocurrency as a matter of national and energy security, as mining requires large amounts of energy. fossil fuel industry promised to defend.

His campaign also announced that it would be the first major presidential campaign in history to accept donations in cryptocurrency, promising to “build a cryptocurrency army to lead the campaign to victory on November 5th.”

The move comes at a time when Trump’s campaign is confident that it will alienate some young voters, especially young people of color, from their traditional home in the Democratic Party, and Trump and his allies have stepped up their attacks on Kennedy.

Kennedy is an outspoken supporter of cryptocurrencies, appearing publicly for the first time as a presidential candidate. bitcoin conference last year in Miami.

“I’m not going to ask if this is a political decision” Kennedy said when asked about Trump’s cryptocurrency pivot at a conference in Texas last week. “I’m glad he did it, and I hope President Biden does too.”

Biden last week vetoed a rare resolution backed by the cryptocurrency industry that would have overturned the Securities and Exchange Commission’s new guidance on cryptocurrencies. “Appropriate guardrails that protect consumers and investors are necessary to harness the potential benefits and opportunities of crypto-asset innovation,” Biden said. veto message.

A former financial regulator in the Biden administration, who now analyzes the cryptocurrency industry in the private sector but was not authorized to speak publicly, said he was not sure the industry would be a reliable ally for Trump given his track record. The industry was frustrated by what it perceived as hostile rhetoric from Biden regulators.

“There is a huge struggle in the industry right now [Trump’s shift] is legal. A lot of people say, “Don’t think that because it’s Trump.” But others say, ‘Biden is saying nice things when he doesn’t have an admin, so it’s hard not to believe it.’

The former administration staffer pointed and added: “The Biden admin is f—– right here.” notes It was treated as a mockery of the industry by SEC Chairman Gary Gensler. “I love them, I support them, I will vote for them. But Gary’s [rehtoric] … loses trust, loses votes.”

Gensler last month he said “the crypto industry’s track record of failures, scams, and bankruptcies” is due to “many players in the crypto industry not playing by the rules.”

Mark Cuban, billionaire Democrat, He warned Biden In his response to X, he said, “He has to choose between Gensler or the crypto voters or it could cost him the White House.”

Several Democratic congressional leaders voted in favor of the resolution, which Biden vetoed, including the Senate majority leader Chuck Schumer – state New York is the nation’s financial capital – and most Democratic senators are up for re-election this year.

Despite the fall of politically active crypto tycoons Sam Bankman-Friedindustry has been expands dramatically political footprint in Washington as the industry faces new regulatory threats from Congress and the SEC.

One large industry-aligned super PAC, Fairshake, has already raised 93 million dollars and spent more than $40 million, according to campaign finance reports. This includes Rep. Katie Porter included $10 million in the California Democratic primary for Senate to win.

Still, cryptocurrency’s broader appeal is likely limited.

As of 2023 Pew Research Center According to the survey, only 17% of Americans said they have traded or invested in cryptocurrency. And three-quarters of people aware of cryptocurrencies said they were unsure about their safety and reliability.

But the survey also found that cryptocurrency users are younger, male and more racially diverse — key segments of the electorate against which Biden, Trump and Kennedy are competing.

Trump has not yet detailed the specifics of the policy, but his rhetorical about-face is being read by the multibillion-dollar industry as a clear sign of a friendlier regulatory environment in Washington under Trump.

Posted by Brian Morgenstern, head of public policy at Riot Platforms, a bitcoin mining company with a market cap of $3 billion. an op-ed After meeting with Trump this week, Bitcoin Magazine announced that the Republican is “the best choice for Bitcoin.”

“The choice is clear. President Trump will protect your right to own Bitcoin, mine Bitcoin, transact with Bitcoin,” he wrote, adding that the Biden administration is “extraordinarily hostile to Bitcoin.”

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By 37ci3

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