A Change of Heart: A Look Back at Trump's Crypto Commentary

‘

Cryptocurrency has been a polarizing topic for many, and Donald Trump’s journey with digital currencies has been no exception. His stance on cryptocurrencies has evolved significantly over time, reflecting broader changes in the financial landscape and his administration's economic policies.

The then President Donald J. Trump made history by becoming the first sitting U.S. president to publicly comment on cryptocurrencies. On July 12, 2019, Trump made a series of thunderous tweets. His remarks, reflected deep skepticism, criticism and potential misuse of digital assets like Bitcoin and Facebook's proposed Libra ( now Diem).

In 2020, late in his presidency, the Financial Crimes Enforcement Network (FinCEN) proposed a regulation requiring financial firms to collect the identity of any cryptocurrency wallet to which a user sent funds, referred to in government parlance as an unhosted wallet.

Fast forward to 2021, NFTs, unique digital assets verified using blockchain, gained significant attention for their applications in art, collectibles, and digital ownership. In the same year building on this momentum, Melania Trump launched her own NFT collection, marking a significant shift in the Trump family's engagement with cryptocurrency and blockchain technology.

The former first lady's NFT collection, named "Cobalt Blue Eyes," was sold for one Solana coin, which was equivalent to just over $185 at the time.

Source: Melania's Vision (Limited Edition) - Solana NFT

Melania Trump's NFT collection not only highlighted her personal engagement with digital art and technology but also underscored the evolving stance of the Trump family towards cryptocurrency, marking a significant departure from initial skepticism to active participation and advocacy.

Following Melania’s foray into the NFT space, Trump launched his own NFT collection named "MugShot" edition in December 2023, themed around his ongoing legal battles. Despite mixed results, with the MugShot collection not completely selling out, Trump’s NFT ventures underscore his growing recognition of their potential.

In May 2024, Arkham Intelligence, which attempts to link digital addresses to real people reported that Trump holds $10M in crypto.

In a Truth Social post from May 2024, Republican presidential candidate Donald Trump voiced strong support for Bitcoin. He acknowledged the geopolitical importance of the world's leading cryptocurrency, cautioning that any policies aimed at restricting Bitcoin would "only help China and Russia." 

Trump's declaration not only makes him the first major party nominee to endorse Bitcoin but also brings attention to the ongoing discussions about classifying Bitcoin as a strategic reserve asset.

What caused the Change of Heart?

• By advocating for a more favorable regulatory environment for cryptocurrencies, Trump aims to differentiate himself from current policies that he views as hostile toward crypto. This aligns with his broader political message of reducing government intervention and promoting economic freedom.

  “On day one, I will fire Gary Gensler and appoint a new SEC chairman.”

• As a presidential candidate, Trump's pro-crypto stance helps him appeal to a growing constituency of crypto enthusiasts and investors. This strategic positioning could help him garner support from younger, tech-savvy voters and those interested in financial innovation.

• The increasing acceptance and use of cryptocurrencies have likely played a significant role. As more people and businesses adopt digital currencies, their legitimacy and potential benefits become harder to ignore.

• Trump has emphasized the economic benefits of cryptocurrency, including Bitcoin mining and the potential for the U.S. to achieve energy dominance through crypto-related activities. By supporting Bitcoin, Trump aims to create jobs and stimulate economic growth.

• Trump's recognition of the geopolitical importance of Bitcoin suggests that he views cryptocurrency as a strategic asset that could help counterbalance the influence of countries like China and Russia. By promoting Bitcoin, he aims to ensure that the U.S. remains a leader in the financial and technological sectors.

Overall, Trump's change of heart appears to be a combination of recognizing the growing importance and potential of cryptocurrencies, aligning with his economic and geopolitical goals, and leveraging the political and financial advantages that come with supporting the crypto movement.