Former President Donald Trump and his family have launched World Liberty Financial, the Republican nominee's latest foray into the world of cryptocurrency. While details of the newest Trump-linked crypto project are scarce, the announcement highlights how the real estate billionaire mogul and many Republicans are leading the crypto charge. Is the Democratic leadership, including Vice President Kamala Harris, falling behind on the issue?
Trump Leans Into Cryptocurrency
On Sept. 16, in a live Spaces session on the social media platform X, Trump appeared with a cryptocurrency influencer and displayed his ebullience about digital assets. When asked what encouraged him to become pro-crypto, Trump alluded to various factors, including the enthusiasm among his sons, the success of his non-fungible tokens (NFTs), and the widespread use of Bitcoin payments.
However, the former president asserted that even if he did not tout crypto, the United States would need to become the world's largest crypto market. "Nobody even understands why my attitude is different," Trump stated. "If we don't do it, China is going to do it. China's doing it anyway. But if we don't do it, we're not going to be the biggest. And we have to be the biggest and the best."
This is a complete reversal from his previous positions and statements when he was president and shortly after he left the White House. Whether out of political expediency or a lucrative financial opportunity, the evolution in his thinking could prove harmful to his opponents in Washington.
A Brief History of Anti-Crypto
In July 2019, Trump ventured over to X (then Twitter) to air his grievances about Bitcoin and the long list of other cryptocurrencies that he said were "not money and whose value is highly volatile and based on thin air." He added that the United States has "only one real currency": the US dollar. "It is by far the most dominant currency anywhere in the World, and it will always stay that way," Trump wrote.
Throughout 2021, Trump routinely spoke with Fox Business Network to discuss his problems with Bitcoin, describing it as a "scam" and "fake" and disapproving of crypto "because it's another currency competing against the dollar." Put simply, he was not a “fan” of cryptocurrency.
The Republican presidential candidate has had a change of heart in the last couple of years, maybe because his NFTs (unique digital assets that can be transacted online with cryptocurrencies) netted him handsome paydays, perhaps because the so-called Crypto Bros could be vital political allies. Whatever the case, Trump’s newfound passion is bleeding into the public policymaking apparatus in the nation’s capital.
GOP lawmakers in the House and Senate have turned bullish. But what about Democrats?
Elephants and Donkeys Fight Over Tokens
In June, House Majority Whip Tom Emmer (R-MN) told Semafor that the American people will observe "some actual crypto-friendly, stablecoin-friendly, digital asset-friendly laws being put on the books.” Outgoing House Financial Services Committee Chair Patrick McHenry (R-NC) has outlined a pro-crypto regulatory framework backed by many prominent industry individuals. Republicans in both chambers overwhelmingly supported a joint resolution to put the kibosh on the Securities and Exchange Commission's (SEC) accounting policy rule for crypto, though President Joe Biden vetoed the bill.
Younger Democrats low on the totem pole have championed crypto. Rep. Wiley Nickel (D-NC) accused SEC chief Gary Gensler of making crypto "a political football" and forcing the president to unnecessarily choose sides on an issue that matters to many Americans.” Rep. Ro Khanna (D-CA) has put together meetings between the crypto industry and the higher-ups in the Democratic Party.
However, the party brass has expressed contempt over crypto. Sen. Elizabeth Warren (D-MA) touted her "anti-crypto army" on X and demanded a crackdown on the plethora of environmental and national security threats that she said crypto poses. Rep. Maxine Waters (D-CA) stated at a May 2024 Subcommittee on Capital Markets that the crypto industry needs more regulations, "not deregulation." The White House has attacked Bitcoin and instead endorsed a central bank digital currency (CBDC), arguing that the latter "would have the potential to offer significant benefits."
While there have been vague reports of the vice president’s 2024 campaign extending an olive branch to the crypto sector, it is unclear if a potential Harris-Walz administration would be any different. The Democratic Party’s 2024 platform omitted any mention of Bitcoin and cryptocurrency.
Crypto Is Here to Stay
Ultimately, cryptocurrency is here to stay. Despite governments and central banks everywhere attempting to clamp down on everything related to crypto, it is persevering. With a $2.1 trillion market cap, Wall Street has taken over crypto from the armchair digital miners. Prices have recovered from the dark winter. Businesses are innovating with decentralized finance. Financial advisors say crypto should represent around 5% of investors' portfolios.
With 73% of cryptocurrency owners reporting that the presidential candidate's position on Bitcoin and crypto would impact their vote in November, this is quickly becoming a top political issue. So, the chorus of MAGA Republicans may be seeing the writing on the wall. Will left-leaning lawmakers continue to wear blinders?
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