Trump, cryptocurrency, and competition with China turned out to be directly linked: U.S. President Donald Trump stated that he supported the industry not only out of investment interest but also because otherwise, Beijing could take the lead in this area.
The statement was made in the Oval Office during the presentation of Trump Accounts—investment accounts for children under 18. Journalists asked whether the holders of such accounts would be able to invest in Bitcoin, and Donald Trump used the question to explain why his attitude toward digital assets has changed so noticeably.
I became a big supporter of crypto for a simple reason: if we don’t get involved, China will.
According to Trump, at first he hardly understood the topic and did not pay much attention to it during his first presidential term. But then the market grew to a scale that became hard to ignore: the market capitalization of the crypto industry, the influx of money, and voter interest turned cryptocurrency from a niche topic into a political factor.
I got involved partly because of politics. I saw that a lot of people like crypto.
From Calling It a Scam to Major Crypto Business
Donald Trump used to speak much more harshly about digital currencies. In his first term, he emphasized that he was not a fan of cryptocurrencies and called Bitcoin a scam. Now the tone has changed: a serious business has been built around the industry, and Trump himself is increasingly facing criticism due to the intersection of government policy and personal financial interests.
The president explains the pivot pragmatically. As a businessman, he saw that large sums of money were flowing into Bitcoin and similar instruments, which means this area has a future. An additional argument, he says, was China’s activity: if the U.S. does not take the first step, Beijing will.
Against this backdrop, the crypto market no longer looks to politicians like just a platform for speculation. The political agenda now includes:
- Solana;
- the meme coin $Trump;
- margin trading;
- exchanges, such as Coinbase.
For politicians, this is no longer a set of disparate tools, but an entire blockchain infrastructure connected to capital, regulation, the U.S. dollar, and the sentiments of millions of voters.
Lobbying Increased Pressure on Washington
Trump’s pivot coincided with increased activity from the cryptocurrency lobby. According to known expenditures, the picture looks like this:
- 2024: about $170 million spent to promote Republican Party candidates.
By the midterm elections in November, spending is expected to be even higher.
For politicians, this is no longer an abstract technology topic. Cryptocurrency has become a way to speak to an audience that sees digital assets not only as an investment, but also as a symbol of financial freedom, an alternative to the traditional system, and part of the new economy.
Trump Claims He Does Not Discuss Crypto Business With Family
The president separately stated that he does not talk to relatives about the cryptocurrency business. However, financial disclosures published on June 30 show that last year he earned more than $1.4 billion in this area.
Donald Trump and his sons are listed among the founders of World Liberty Financial. This platform brought in a significant portion of the president’s cryptocurrency income over the past year. In the family’s accounting, such projects already look like major assets, but Trump himself insists that his interest in the industry is not related to personal gain.
I let my children do what they want to do. I never, absolutely never, discuss it with them.
Claims Against the Biden Administration and the Role of the SEC
Trump also accused Joe Biden’s administration of stopping investigations related to cryptocurrencies as soon as he took an openly pro-crypto position. At the same time, under the current administration, the SEC has halted several investigations, and some cases against crypto companies have been withdrawn or settled.
Some of these companies previously donated funds in support of Trump. The president commented on the situation in his characteristic manner: according to him, when he sees a crypto entrepreneur who has had charges dropped, he tells him that he’s lucky with who is in the White House now.
Why the Crypto Electorate Has Become Too Important to Ignore
Trump’s support for cryptocurrencies looks less like a personal hobby and more like a calculation aimed at a significant group of voters. A study by The Digital Chamber estimates the U.S. crypto electorate at about 26 million people. For any campaign, that’s a scale comparable to the population of a large state.
There is also a market context. After Trump’s victory in the 2016 election, the crypto market already went through a similar cycle: rapid growth, then a prolonged decline. Therefore, the current support for the industry raises a natural question: is this a long-term strategy, or are politics and the crypto market once again moving in the same cycle?
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