• Former President Trump endorses cryptocurrency, marking a dramatic reversal from his earlier skepticism.
  • The statement comes amid a broader political push to attract crypto voters and donors ahead of the 2024 election.
  • Crypto markets reacted positively, with Bitcoin briefly spiking on the news.

A Surprise Endorsement

Former President Donald Trump has declared himself a “big fan” of cryptocurrency, according to a statement made during a private fundraiser in New York. The comment, which was shared by attendees on condition of anonymity, represents a sharp departure from his previous characterization of crypto as a “scam” during his presidency.

“I’m a big fan of crypto, I think it’s going to be great,” Trump said, according to a person familiar with the matter. The remarks were met with applause from the tech-forward audience, many of whom have been advocating for clearer crypto regulations.

Political Implications

The shift comes as Trump’s campaign seeks to differentiate itself from the Biden administration’s more cautious approach to digital assets. Crypto PACs have raised over $100 million this cycle, with donors increasingly demanding pro-crypto policies. Trump’s team has been quietly meeting with industry leaders, including representatives from major exchanges and blockchain firms, to discuss potential regulatory reforms.

“This is a clear attempt to court the crypto vote,” said a former Trump administration official. “He sees the money and the enthusiasm, and he’s adapting.”

Market Reaction

Bitcoin surged 3% within hours of the news breaking, trading above $68,000 at press time. Ethereum and other major altcoins also saw gains. Analysts cautioned that the rally could be short-lived, as Trump’s policy specifics remain vague. “The market loves headlines, but we need concrete proposals,” said a senior analyst at a crypto hedge fund.

Industry Response

Industry leaders welcomed the endorsement but remained wary. “It’s a positive signal, but we’re watching for actual policy,” said the CEO of a major custody firm. The Blockchain Association issued a statement calling for “bipartisan support for clear rules of the road.”

Background

Trump’s relationship with crypto has been rocky. In 2019, he tweeted that he was “not a fan” of Bitcoin, calling it “highly volatile and based on thin air.” His Treasury Secretary, Steven Mnuchin, pursued regulatory crackdowns on crypto firms. The reversal is likely tied to both political strategy and his own business activities, including a NFT collection launched in 2022 that earned millions.

What’s Next?

Trump’s campaign is expected to release a formal crypto policy platform in the coming weeks, according to aides. The platform is rumored to include support for self-custody rights, lower capital gains taxes on digital assets, and a potential strategic Bitcoin reserve. Critics argue that such proposals could undermine consumer protections and monetary stability.

Correction

A previous version of this article incorrectly stated that Trump spoke at a public rally. The remarks were made at a private fundraiser. We regret the error.