Trump’s Cryptocurrency Conversion: Embracing Bitcoin to Court Young Voters and Industry Leaders

In an unexpected shift, former President Donald Trump has embraced cryptocurrencies, a sector he once criticized, in a bid to win over young, tech-savvy voters and influential industry executives.

On Wednesday, following a meeting with bitcoin miners at his Mar-a-Lago estate, Trump took to his Truth Social platform, urging cryptocurrency users to “vote for Trump!” and vowing to combat President Joe Biden’s “hatred of Bitcoin.”

This move comes after weeks of active engagement with crypto enthusiasts and industry leaders. A bitcoin mining executive present at the meeting revealed to CNBC that the industry has pledged to raise over $100 million and mobilize more than 5 million voters to support Trump this fall.

This position marks a stark contrast to Trump’s earlier views. As president, he was openly critical of cryptocurrencies. In 2019, he declared on social media that he was “not a fan of Bitcoin and other Cryptocurrencies,” calling them volatile and unregulated, potentially aiding illegal activities. He stressed the dominance of the U.S. dollar, dismissing cryptocurrencies as scams and disasters even after leaving office, as recently as 2021.

However, by March, Trump’s perspective began to shift as bitcoin’s value rebounded from various scandals. By May, he had fully endorsed cryptocurrencies, championing them at the Libertarian Party’s national convention. Despite a mixed reception, he garnered applause for promising to “stop Joe Biden’s crusade to crush crypto.” He pledged support for the 50 million crypto holders in the U.S. and vowed to block the creation of a central bank digital currency.

Trump now ties crypto to national and energy security, highlighting the significant energy demands of bitcoin mining. His campaign will be the first major presidential campaign to accept cryptocurrency donations, aiming to build a “crypto army” to secure victory in the upcoming election.

Targeting young voters, especially young men of color traditionally aligned with the Democratic Party, Trump’s campaign coincides with heightened attacks on Robert F. Kennedy Jr., another crypto advocate who debuted his presidential campaign at a bitcoin conference in Miami.

Kennedy welcomed Trump’s change, hoping Biden would adopt a similar stance. Recently, Biden vetoed a crypto industry-supported resolution that sought to overturn new SEC guidance on cryptocurrencies, citing the need for consumer and investor protection in his veto message.

A former Biden administration financial regulator observed that the crypto industry remains cautious about Trump’s reliability as an ally, given his track record. The industry, frustrated by perceived hostility from Biden’s regulators, is divided over Trump’s sincerity.

Last month, SEC Chair Gary Gensler criticized the crypto industry for its failures and lack of regulatory compliance, which some believe has strained the Biden administration’s relationship with crypto voters. Billionaire Mark Cuban warned Biden that choosing between Gensler and crypto voters could have significant political consequences.

Despite the fall of crypto mogul Sam Bankman-Fried, the industry is expanding its influence in Washington. Fairshake, a major industry-aligned super PAC, has raised $93 million and spent over $40 million, including efforts to defeat Rep. Katie Porter, a Warren protégé pushing for stricter regulations.

Nevertheless, cryptocurrency’s broader appeal remains limited. A 2023 Pew Research Center survey found that only 17% of Americans have engaged with cryptocurrency, and most people are not confident in its safety and reliability. However, crypto users tend to be younger, male, and racially diverse — a crucial voter demographic for Biden, Trump, and Kennedy.

While Trump has not yet provided detailed crypto policies, his rhetorical shift suggests a more favorable regulatory environment for the industry under his potential administration. Brian Morgenstern, public policy head at Riot Platforms, praised Trump in an op-ed for Bitcoin Magazine, calling him the “best choice for Bitcoin” and criticizing the Biden administration’s antagonism towards the cryptocurrency.