Cryptocurrency has been a polarizing issue in American politics for years, and conservatives have embraced it as an escape from government overreach. They are pro-Trump tech moguls, investors, and blockchain enthusiasts who once counted the former president as an ally in their fight for financial decentralization.
Recent events have left this group frustrated, though, with many believing that Trump's position on cryptocurrency has taken a turn they did not anticipate.
In his first term, Donald Trump did not like cryptocurrency. In 2019, he famously tweeted, "I am not a fan of Bitcoin and other cryptocurrencies, which are not money and whose value is highly volatile and based on thin air."
His administration was very strict on virtual currencies, with authorities like the Securities and Exchange Commission (SEC) cracking down on initial coin offerings (ICOs) and other cryptocurrency-related deals.
Despite this, most tech startup founders remained optimistic that Trump's overall deregulation agenda would reduce the complexity, allowing blockchain innovation to flourish. Trump's administration even appointed crypto-supportive officials like Brian Brooks, who served at the Office of the Comptroller of the Currency (OCC) and called for better clarity when it came to banking for cryptos.
Since exiting the White House, Trump's attitude towards cryptocurrency has softened considerably. He has released his own NFT collection, which shows he is open to embracing blockchain technology. He has also made comments implying that he believes there is promise in crypto-based projects, particularly those that relate to his brand.
However, this change has not comforted most pro-Trump geeks.
Instead, they view it as opportunistic and inconsistent. While Trump's tone has softened, his policy positions remain unclear, and he has not announced a definitive strategy for how he would engage with crypto regulation if re-elected. Most consider his recent embrace of NFTs to be more of a pecuniary move than a genuine effort at decentralization and innovation.
Perhaps the greatest source of anger for pro-Trump crypto enthusiasts is his failure to push back against regulatory crackdowns. The Biden regime has continued to ramp up regulation of cryptocurrency, with institutions such as the SEC and Treasury Department subjecting exchanges, decentralized finance (DeFi) initiatives, and stablecoins to greater scrutiny. Trump's conservative supporters had hoped he would stand strong against these efforts, but he has largely said nothing.
Some are concerned that if Trump won re-election, his administration could keep the same regulatory policies instead of reversing them. This concern has created more skepticism among crypto investors who previously thought Trump would be a friend of financial liberty.
The second cause of frustration is the juxtaposition with other Republican leaders who have been bolder in their pro-crypto stance. Florida Governor Ron DeSantis, for example, has become an outspoken advocate of Bitcoin and has pushed back against central bank digital currencies (CBDCs). Similarly, Senator Cynthia Lummis has been an outspoken advocate of Bitcoin-friendly policy, demanding more open-ended regulations that spur innovation while protecting consumers.
In contrast to those figures, Trump's crypto stance appears baffling. While not directly criticizing virtual assets over the past few years, he is also not necessarily a strong advocate for the space. This ambiguity has caused many tech innovators to wonder if they can rely on him to be a champion of the future of blockchain technology.
Some pro-Trump techies suspect that his stance on cryptocurrency is influenced by his ties to traditional financial institutions.
Trump has been endorsed by Wall Street bosses and traditional finance companies that have traditionally been hesitant about crypto. This has prompted some to suspect that his policies might be more in line with these established players than the decentralized vision many in the crypto community believe in.
Furthermore, Trump has also come out in favor of a strong currency and has disparaged Bitcoin as a possible threat to U.S. monetary policy. If he continues to look out for the interests of legacy financial institutions, there is little chance that he will urge policies that take full advantage of the disruptive power of blockchain technology.
While frustrated with him, most pro-Trump crypto enthusiasts have not entirely written him off. Rather, they are waiting for more definitive promises on major issues, including:
Regulatory certainty – A vow to reverse overzealous SEC enforcement efforts and provide clear standards for crypto companies.
Self-custody protection – Giving people the ability to hold their own digital assets free from interference by banks or regulators.
Resistance to CBDCs – Conservatives are generally concerned that central bank digital currencies would usher in government surveillance and financial control. A robust anti-CBDC position would reassure crypto enthusiasts.
Support for Bitcoin as a store of value – While not everyone who supports crypto wants government participation, most would prefer a president who recognizes Bitcoin's place in the future of finance
Lacking specific commitments on these matters, Trump risks alienating a crucial group of his constituency—high-tech entrepreneurs and investors who view blockchain as a means to push back against government encroachment.
Pro-Trump geeks previously expected his regime to build a more welcoming landscape for cryptocurrency.
His flip-flopping stance, unwillingness to be clear as a matter of policy statements, and suspected relationships with old-money financial circles have generated uncertainty amongst many. Even though Trump's NFT debut suggests openness towards blockchain, it has not yet alleviated concerns a great number of people within the cryptocurrency scene have that he will actually support them with decentralization and advancement.
If Trump is to win back the trust of crypto fans, he will have to take a firmer and more consistent stance on major issues confronting the industry. Until that happens, most pro-Trump geeks will be doubtful about his real intentions on cryptocurrency policy.