As Biden withdraws from the race, how is Trump leveraging cryptocurrency strategies to compete for votes?
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As Biden withdraws from the race, how is Trump leveraging cryptocurrency strategies to compete for votes?
Under the ballot, determined to strive for becoming the "Crypto President."
Navigating Web3 tides with focused insightsBy Chandler, Foresight News
On July 22, 2024, U.S. President Joe Biden announced his withdrawal from the 2024 U.S. presidential election, stating he would not seek re-election and intends to complete the remainder of his term, which ends on January 20, 2025. In a public letter posted on social media, he said, "It has been the greatest honor of my life to serve as your president. While I have always intended to run again, I believe it is in the best interests of our party and our country for me to step aside and focus solely on fulfilling my duties as president for the remainder of my term. Today, I am giving my full support and endorsement to Vice President Kamala Harris as our nominee this year."
During Biden’s tenure, the U.S. government has taken a cautious approach toward regulating the crypto industry, focusing on refining regulations—a stance closely tied to the previous bear market and the cascading fallout from the FTX collapse. In March 2022, Biden signed an executive order on ensuring responsible innovation in digital assets, outlining the U.S. government's cryptocurrency strategy and directing federal agencies to review potential regulatory changes. A comprehensive digital asset development framework was released in September 2022. In March 2023, the "2023 Economic Report of the President" concluded that crypto assets were “too risky to serve as payment tools or to expand financial inclusion,” adding, “these assets appear likely to persist, continuing to pose risks to financial markets, investors, and consumers.” Subsequently, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) launched stringent enforcement actions against major crypto entities such as Binance, Kraken, and Coinbase.
In 2024, the approval of spot Bitcoin ETFs gave the market hope for policy relaxation. However, in May, the Biden administration chose to veto a congressional resolution aimed at overturning SEC accounting rule SAB 121, which restricts heavily regulated U.S. banks from large-scale custody of digital assets—sparking strong backlash from crypto supporters. At the time, pro-crypto U.S. Senator Cynthia Lummis stated, “President Joe Biden’s decision to veto the repeal of the controversial crypto accounting rule missed an opportunity to correct his stance on digital assets. I won’t stand idly by—I will continue fighting to promote financial innovation.”
Approaching the election, the Biden administration made efforts to soften its regulatory posture, including approving spot Ethereum ETFs, but failed to win significant support from voters in the crypto community. Meanwhile, Donald Trump waved the banner of being the “Crypto President,” repeatedly showcasing his support for the crypto sector to appeal to voters.
From Crypto Critic to Criticizing Biden’s Crypto Policies
In earlier years, Trump was firmly opposed to crypto assets. In 2019, he tweeted: “I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and based on air. Unregulated crypto assets can facilitate illegal activities, including drug trafficking and other illicit acts…” He also said in a 2021 interview on Fox Business that Bitcoin was a scam against the U.S. dollar, expressing no surprise if it fell below $6,000.
However, with the start of this election cycle, Trump has gradually signaled a clear pro-crypto stance, joining Republicans in repeatedly criticizing the Biden administration’s hardline policies.
Trump once attacked Biden for fundamentally misunderstanding cryptocurrencies, then posted on his social platform Truth Social: “I am very positive and open-minded toward crypto companies and everything related to this emerging industry. The United States must become the leader in this field, not number two. On the other hand, Joe Biden, the worst president in American history, wants this industry to die slowly and painfully. That will never happen under me!”
At the Libertarian Party National Convention, Trump pledged that if re-elected, he would commute the sentence and release Ross Ulbricht, founder of Silk Road. “If you vote for me, on my first day in office I will convert Ross Ulbricht’s sentence into time served. He has already served 11 years—we will bring him home.” He also promised to ensure the future of cryptocurrencies and Bitcoin remains in the United States rather than overseas; support the right of America’s 50 million crypto holders to self-custody their assets; strongly oppose the creation of a central bank digital currency (CBDC)—a key Democratic policy initiative; halt Biden’s efforts to destroy the crypto industry; and keep crypto critic Elizabeth Warren away from Bitcoin.
In June, Trump met with several Bitcoin mining executives at Mar-a-Lago. Matthew Schultz, Executive Chairman of CleanSpark Inc., said Trump expressed love and deep understanding of cryptocurrencies, added that Bitcoin miners help stabilize energy supply to the grid, and emphasized he would advocate for miners in the White House. This gathering, dubbed the “Presidential Roundtable on Bitcoin Mining,” included Nasdaq-listed mining firms CleanSpark and Riot Platforms, along with Marathon Digital and other prominent industry figures. Key attendees included S. Matthew Schultz of CleanSpark, Jason Les and Brian Morgenstern of Riot Platforms, CFO Salman Khan of Marathon Digital, and Amanda Fabiano of Fabiano Consulting (former mining executive at Galaxy and former director at Fidelity).
This move directly contrasted with Biden’s position on crypto mining. The Biden administration’s proposed fiscal year 2025 budget highlighted that crypto mining activities negatively impact the environment and environmental justice, while also increasing energy prices for those sharing the grid with miners. As such, the budget proposed a 30% tax on the total energy costs of crypto miners—applying to both grid-supplied and self-generated power. The plan would be phased in: 10% starting in 2025, 20% in 2026, and 30% in 2027. Biden had previously proposed the same tax in the prior year, but it failed to pass through Congress to become law.
Appealing to Crypto Voters from Multiple Angles
To gain more votes and financial backing from the crypto sector, Trump’s campaign announced it would begin accepting cryptocurrency donations, saying the move aims to unite those “opposed to the Biden administration’s control over U.S. financial markets.” According to The Wall Street Journal, Trump’s campaign raised $331 million in Q2, with crypto donations accounting for about 1%—approximately $3 million mostly in Bitcoin and Ethereum. Between May and the end of June, around 100 individuals donated cryptocurrency to Trump’s campaign.
Data shows that since 2023, donors from the crypto industry have contributed $94 million to U.S. federal political committees, surpassing the $83 million donated in the previous election cycle. Most contributions came through political action committees (PACs), Trump’s primary fundraising channels. Coinbase and Ripple Labs donated $20.5 million and $20 million respectively. Marc Andreessen and Ben Horowitz each donated $9 million to Fairshake, billionaire twins Cameron and Tyler Winklevoss each gave $2.5 million, and Coinbase Global CEO Brian Armstrong donated $1 million.
Beyond accepting campaign donations, Trump plans to speak at the Bitcoin 2024 conference in Nashville at the end of July. According to CryptoSlate, sources indicate Trump may make a landmark announcement at the event, potentially proposing to adopt Bitcoin as a strategic reserve asset for the United States.
On policy grounds, the Republican Party expressed support in its official 2024 election platform for multiple measures favorable to the crypto industry, vowing to end the “illegal and un-American crackdown” on U.S. crypto businesses. In addition to opposing CBDCs, the platform pledges to “defend the right to mine Bitcoin” and allows crypto holders to safeguard their own tokens, declaring, “We will defend the right to transact without government surveillance or control.”
Meanwhile, Trump appointed Ohio Senator J.D. Vance as the Republican vice-presidential candidate. Vance, a former venture capitalist, has publicly supported cryptocurrencies and criticized the SEC’s regulatory model. Last month, he drafted legislation aimed at reforming digital asset regulation. His annual financial disclosure last year revealed he held between $100,000 and $250,000 worth of Bitcoin via Coinbase as of 2022.
As Coinbase CEO Brian Armstrong noted, he has met with over ten Democratic and Republican senators in Washington, D.C., to discuss establishing clear rules for the crypto industry and consumer protections for crypto users. He added that with the FIT21 Act (Financial Innovation and Technology for the 21st Century Act) having passed the House, there is strong bipartisan momentum in the Senate to complete this work. “It’s encouraging to see the voices of crypto voters making an impact.”
Overall, Trump’s pro-crypto stance is having a profound influence on both the development of the crypto market and the U.S. election. However, this support is complex. Within the context of the U.S. election, Trump’s favorable position may attract backing from certain crypto enthusiasts and tech professionals. At the same time, given his shifting stance on cryptocurrencies, questions remain about the stability and enforceability of his policies, potentially triggering market volatility and regulatory uncertainty.
Regardless, this position has clearly boosted his popularity. According to data compiled by polling firm Echelon Insights, among those who initially did not plan to vote for Trump, 13% said his stance on cryptocurrencies improved their view of him. Polls show that a majority of respondents (60%) believe Congress needs to establish regulations specifically for crypto businesses, and Republicans generally express dissatisfaction with how today’s financial system operates. For the development of the crypto space, this may ultimately be a positive development. As research firm 10x Research noted, there currently appears to be no strong challenger capable of defeating Trump. For Bitcoin, this suggests a crypto-friendly administration may soon occupy the White House. Historical precedent shows that when a new administration takes office, the SEC chair typically resigns. Although current SEC Chair Gary Gensler’s term runs until June 5, 2026, he is widely expected to step down in January or February 2025.
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