Former President Donald Trump’s 2024 campaign has created a significant milestone through its recent announcement. In a groundbreaking move, the campaign has declared its acceptance of cryptocurrencies as donations, marking the first instance in the history of the United States. This decision is expected to enhance fundraising endeavors, particularly among tech-savvy supporters who view it as a progressive step forward.
“Bitcoin would be the most obvious, no-brainer beneficiary of Trump’s support. One knock against this crypto has always been that Bitcoin mining is tremendously energy-inefficient. In September 2022, for example, the Biden administration issued a lengthy research report (Climate and Energy Implications of Crypto-Assets in the United States) detailing all the ways that Bitcoin mining imposes significant strains on America’s energy grid,” the report said.
“So, at the very least, any type of nationwide ‘Make Bitcoin Mining Great Again’ initiative would remove one of the key obstacles to Bitcoin’s mainstream acceptance. Yes, environmental activists like Greenpeace will continue to put out reports about ‘energy guzzling Bitcoin mines,’” but more U.S. states would be likely to embrace Bitcoin mining. That’s especially true for states with cheap sources of renewable energy, or states looking to revitalize certain economic regions,” the report added.
“The big question, of course, is whether any new Trump initiative to support domestic Bitcoin miners will actually have any economic impact at all. After all, the Bitcoin mining industry is relatively small, and if we’re only talking about new jobs added at Bitcoin mining companies, then the impact might be negligible. Currently, there are approximately 60,000 people employed within the U.S. crypto industry, but only one-fifth of them are involved with crypto mining,” the report continued.
“The Republican side sees crypto not just as a vote bank but also a meaningful source of funding,” the analysts wrote. “If the election sentiment shifts more Republican, crypto would end up as the primary ‘Trump trade’ and hopes of a favorable regulatory regime would change the ‘use-case’ narrative around blockchains.”
Earlier this month, the executives of several Bitcoin mining companies convened at Mar-a-Lago, where Trump conveyed his endorsement for cryptocurrency. He affirmed that, in the event of being reelected as president, he would continue to back the crypto mining industry.
Trump’s campaign announced: “Today, President Trump’s campaign has launched a fundraising page that provides any federally permissible donor the ability to give – through its joint fundraising committees – using any cryptocurrency accepted through the Coinbase Commerce product.”
“This addition to President Trump’s already groundbreaking digital fundraising operation marks the first time a major party Presidential nominee has embraced cryptocurrency for donations. Contribution limits and disclosure requirements for crypto donations will follow Federal Election Commission regulations,” the release continued.
“Starting today, people wanting to make federally permissible donations to the Trump campaign with crypto can do so at: https://www.donaldjtrump.com/crypto.”
The digital platform specifies that the ex-president is open to receiving a total of eight distinct forms of virtual currency, which encompass Bitcoin, XRP, and USD Coin.
“Demonstrating President Trump’s success as a champion of American freedom and innovation, we proudly offer you a chance to contribute to the campaign with cryptocurrency,” the website says.
Trump’s crypto donation website notes further, “Saving our nation from Biden’s failures requires your support. As Biden piles regulations and red tape on all of us, President Trump stands ready to embrace new technologies that will Make America Great Again.”
Throughout the Biden administration, the US Securities and Exchange Commission received backlash from cryptocurrency supporters due to its forceful actions against crypto trading platforms allegedly involved in the sale of unregistered securities. However, a number of analysts argue that the SEC’s position has become more lenient following its authorization of Bitcoin and Ether exchange-traded funds earlier in the year.
