On July 21, Democratic candidate Biden officially announced his withdrawal from the U.S. presidential race, causing a ripple effect with Bitcoin prices plummeting by $2000 in a short period. Earlier, on July 14, an assassination attempt on U.S. presidential candidate Trump during a campaign rally in Pennsylvania garnered widespread attention, leading to a significant surge in Bitcoin prices and doubling the value of Trump-related tokens (FIGHT, TRUMP, MAGA, FEARNOT, etc.). The direct impact of political events on the crypto world has become more apparent, something unimaginable five years ago.

Trump’s Love-Hate Relationship with Cryptocurrency

Looking back at Trump’s past statements, we can see how he has transitioned from an anti-crypto president to a crypto-friendly candidate.
During his first term as President of the United States, Trump held a clear opposition to cryptocurrencies, even publicly denouncing them in the media.
In 2018, under Trump’s administration, the SEC began stringent regulations on ICOs, including actions against the world’s first crypto bank, Arise Bank.
In 2019, Trump made his first public social media attack on Bitcoin and crypto assets. The following year’s budget proposal disclosed millions of dollars for regulatory enforcement on the crypto industry.
From 2020 to 2021, despite nominating several crypto-friendly advisors to his cabinet, Trump maintained his stance that “Bitcoin is a scam” and called for stricter regulations on crypto assets. He also publicly claimed that he did not hold any cryptocurrencies.
In 2022, Trump officially announced the release of his limited edition NFTs. In 2023, he launched two more NFT series and introduced NFT-related benefits.
In 2024, as a presidential election year, cryptocurrencies have gained attention from younger voters and become more prevalent in the U.S., making them a significant part of Trump’s campaign strategy. In May, Trump announced that he would accept cryptocurrency donations, specifically highlighting that “Biden doesn’t even know what cryptocurrency is.” Additionally, Trump publicly declared his intention to secure the future of cryptocurrencies and Bitcoin in the U.S. and promised to pardon Silk Road founder Ross Ulbricht.

The “Cryptocurrency Battle” between Trump and Biden

Five years ago, while still in office, Trump publicly stated that he did not like Bitcoin and other cryptocurrencies because “they are not money, their value is highly volatile, and they are based on thin air.” However, Trump has since released multiple NFT series and become one of the few heavyweight political figures actively involved in the cryptocurrency space, now proudly supporting cryptocurrencies. As the election heats up, Trump increasingly positions himself as a “crypto-friendly” candidate, claiming to be a supporter of fintech innovation. On May 22, Trump officially launched a cryptocurrency donation website, accepting Bitcoin, Ethereum, USDC, SOL, XRP, DOGE, ZRX, SHIB, and other cryptocurrencies. He frequently makes public statements in support of cryptocurrencies, declaring his intention to lead the “crypto army” to victory on November 5 (Election Day).
In contrast, Biden has consistently shown a strict regulatory stance towards cryptocurrencies. However, he seems to be softening his position to win over young voters. After all, minorities and young people were key to Biden’s victory in the 2020 election, and these groups have the highest acceptance of cryptocurrencies across all generations and demographics. Reports indicate that in six key swing states, over 20% of voters consider cryptocurrencies an important issue. Another nationwide survey conducted by the crypto company Paradigm found higher ownership rates of crypto assets among minority communities and young people.
According to The Washington Times, Biden’s reelection campaign, struggling to attract Gen Z voters, is now hiring a “Meme Manager” to handle internet content.
Analyzing the reasons behind the shifts in the attitudes of these two candidates reveals two main points:
Firstly, the growing importance of the large crypto user base in elections cannot be ignored. Recent market discussions about “50 million Americans holding crypto assets” reflect the increasing attention on crypto assets and their holders as the 2024 U.S. presidential election approaches. Although these figures may be election-specific data intended to soften candidates’ stances and attract crypto voters, it also indicates that more politicians and candidates are forced to court this voter segment.
Secondly, the lobbying and influence of the crypto industry are increasingly penetrating policy-making areas. According to data from OpenSecrets, reported by DL News, the crypto industry’s lobbying expenditures hit a record high of $24.7 million in 2023 and spent another $5.6 million in the first quarter of 2024. The peak lobbying activity in 2023 saw a notable rise in the number of U.S. congress members receiving political donations from crypto-related teams, with these members beginning to support common interests with the crypto industry. For instance, on May 8, 21 House Democrats voted in favor of a resolution to strike down an SEC announcement, and on May 16, 11 Senate Democrats also supported this resolution. OpenSecrets analysis found that many of these congress members were major recipients of political donations from the crypto industry.

Biden Withdraws

On July 21, 2024, the current U.S. President Biden announced his withdrawal from the 2024 presidential race, opting not to seek re-election and planning to complete his current term, which ends on January 20, 2025. In an open letter on social media, Biden stated, “It has been the greatest honor of my life to serve as your president. While I initially intended to run for re-election, I believe it is in the best interest of our party and country for me to withdraw and focus on fulfilling my remaining presidential duties.”
During Biden’s tenure, the U.S. government’s approach to regulating the crypto industry has generally been cautious, emphasizing regulatory improvements. In 2024, the approval of Bitcoin spot ETFs offered hope for a more lenient policy environment. However, in May, the Biden administration chose to reject a resolution that sought to overturn the SEC’s crypto asset accounting standard SAB 121, which prevented heavily regulated U.S. banks from extensively holding digital assets, sparking strong opposition from crypto supporters.
In contrast, Trump’s pro-crypto stance has effectively boosted his support rates. According to data compiled by the polling company Echelon Insights, among those not planning to vote for Trump, 13% said his position on cryptocurrencies made them view him more favorably. Polls indicate that a majority of respondents (60%) believe Congress needs to establish regulations for crypto businesses, while Republicans generally dislike the current financial system. For the crypto industry, this could be a fortunate development.

Conclusion

This election cycle has become a clear turning point for the development of the crypto industry, with Trump’s positive signals towards the crypto market being the most evident manifestation. As the winds of change begin to blow, the outcome of the 2024 U.S. presidential election could indeed usher the crypto industry into a new era.