Trump publicly backs Bitcoin
On 9 May, Trump made his first public endorsement of cryptocurrencies. According to a Fox News reporter, Trump will facilitate the use of cryptocurrencies for campaign donations. In a brief video address that went viral, Trump inquired whether cryptocurrencies could be used to make donations to his campaign. I believe the answer is in the affirmative.
Following Trump's statement, the TRUMP meme token reached a high of $6.09 for a brief period and has increased by 26.09% over the past 24 hours. From a technical standpoint, Trump has consistently expressed a negative view of cryptocurrencies. In 2019, during his tenure as President, Trump expressed his reservations about cryptocurrencies, stating that they were not money. He had previously stated that he had always preferred one currency, the US dollar.
The shift in this stance occurred on 20 February. At that time, Mr. Trump stated in an interview with Fox News ahead of the South Carolina primary that he was "OK with Bitcoin." This statement was taken to indicate that Trump was reconsidering his position on Bitcoin. The comment was met with a swift and intense public reaction. Mr. Trump also stated that Bitcoin has become a significant entity in its own right and may require some form of regulation. There is a growing acceptance of Bitcoin. I am noticing an increasing number of individuals expressing interest in paying for Bitcoin. In any case, I am comfortable with this approach.
To reiterate, this is the second occasion on which Trump has publicly expressed support for Bitcoin. From a stance of criticism to one of support, what prompted Trump to alter his position? I believe it is the result of the influence of the cryptocurrency audience groups in the hands of the vote. According to incomplete statistics, close to 14% of Americans hold digital assets as early as 2022, with the majority of these individuals belonging to the younger demographic. Two years on, and in the context of the SEC's approval of a Bitcoin ETF, it is likely that this number will continue to grow, rather than decline.
Furthermore, the current timeline through November represents a pivotal period for voter engagement in the U.S. election. Bitcoin is a highly sought-after digital asset among young people. It is reasonable to conclude that Trump's stance is driven by a desire to appeal to the broad young Bitcoin audience, with the hope of securing their votes. It was therefore a prudent decision to align with the younger Bitcoin audience. Canvassing for votes is now a key responsibility for both Trump and Biden. In fact, Biden initiated a series of social media campaigns around Bitcoin prior to Trump's involvement.
Forbes reported on 8 May that Bitcoin and cryptocurrencies will play a more prominent role in this US election than they did in 2016 or 2020. A survey conducted by Harris Poll on behalf of Digital Currency Group (DCG) and Crypto Group revealed that 21% of voters in key US swing states believe cryptocurrency policy is an important enough topic to sway their support. Meanwhile, crypto-industry super PACs have raised approximately $100 million for the 2024 congressional elections, according to a report published by consumer advocacy group Public Citizen, which used data from Opensecrets.
Bitcoin Magazine reports that the White House Executive Office of the President has stated that the administration strongly opposes the passage of the H.J. Res. 109 Act, citing concerns that it would undermine the work of the Securities and Exchange Commission (SEC) to protect investors in the crypto-asset marketplace and preserve the broader financial system. Should the President receive H.J. Res. 109, he will exercise his right to veto it. The legislation was originally designed to permit heavily regulated financial institutions to act as custodians for bitcoin and other cryptocurrencies.
In a post on social media, billionaire Tim Draper stated that the White House veto of the legislation is impeding the growth of entrepreneurship in the United States. Draper asserted that he is aware of the source of the majority of new jobs and innovation. From the entrepreneurs who are considering leaving the United States.
