Former President Donald Trump’s 2024 campaign announced Tuesday that it is now accepting donations via cryptocurrency. This initiative is the first time a major presidential nominee has included digital currency as part of their fundraising strategy.
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The Donald Trump campaign will accept donations through various cryptocurrencies using the Coinbase Commerce product.
This platform allows for contributions in Bitcoin (BTC), Ethereum (ETH), Solana (SOL), US Dollar Coin (USDC), XRP, Dogecoin (DOGE), 0x (ZRX), and Shiba Inu (SHIBA).
All contributions will adhere to the Federal Election Commission’s (FEC) standard contribution limits and disclosure requirements.
This announcement comes on the heels of a successful fundraising month for Donald Trump. In April, his campaign raised over $76 million, surpassing President Joe Biden’s campaign which raised $51 million during the same period. Biden’s campaign still maintains an advantage in cash on hand.
The Donald Trump campaign addressed that this move aligns with the former president’s commitment to deregulation and reducing government control over Americans’ financial decisions.
“President Trump has always been a proponent of deregulation and this new fundraising option is a testament to his commitment to financial freedom and innovation,” the campaign stated. “With the acceptance of cryptocurrencies, we are offering our supporters more flexibility and aligning with modern financial practices.”
In 2019, he openly criticized digital currencies, stating, “I am not a fan of Bitcoin and other Cryptocurrencies, which are not money, and whose value is highly volatile and based on thin air. Unregulated Crypto Assets can facilitate unlawful behavior, including drug trade and other illegal activity.”
Donald Trump’s campaign now portrays him as a proponent of crypto-friendly policies. This shift also follows his statements against the creation of a central bank digital currency which he described as a “dangerous threat to freedom.”
The Biden administration has taken a cautious and regulatory approach towards cryptocurrency. In 2022, President Biden signed an executive order directing various government agencies to examine the risks and benefits of cryptocurrencies, focusing on areas such as consumer protection, financial stability, responsible innovation, and illicit activity prevention.
This approach contrasts with Donald Trump’s current pro-crypto stance. Trump’s campaign has leveraged this contrast to appeal to voters who favor less government intervention in financial markets.
The campaign pointedly referenced comments from Senator Elizabeth Warren, a Biden surrogate, who has been critical of cryptocurrencies stating she was building an “anti-crypto army.”
The Donald Trump campaign’s strategy includes targeting the growing demographic of young male voters who have shown interest in cryptocurrencies.
This group is seen as an important constituency that could bolster Donald Trump’s support base in the upcoming election.
The campaign has created a fundraising page in collaboration with Coinbase. Supporters can donate in custom amounts or select from predefined options such as $20.24, $2,024, $45, $47, and $4547.
The numbers 45 and 47 symbolize Trump’s status as the 45th president and his aim to become the 47th president.
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While Donald Trump’s campaign claims to be the first major party nominee to accept cryptocurrency donations, it is important to note that Senator Rand Paul also accepted Bitcoin donations during his 2015 presidential campaign.
Independent candidate Robert F. Kennedy Jr. is currently accepting Bitcoin donations for his 2024 presidential bid.
The FEC permits political committees to receive Bitcoin contributions treating them as “money or anything of value” based on market value at the time of receipt.
This move is not Donald Trump’s first into the world of digital assets. He has previously engaged with the cryptocurrency community through various initiatives.
Donald Trump received millions through his Trump Digital Trading Cards, a non-fungible token (NFT) project, and the MAGA coin, a meme coin launched last August.
Analysts suggest that Donald Trump’s potential return to the White House could signal a more favorable regulatory environment for the cryptocurrency industry.
Geoffrey Kendrick, a researcher at Standard Chartered noted that Donald Trump’s administration might adopt less stringent regulatory measures compared to the current Biden administration.
The campaign has launched a new fundraising page that allows donors to contribute using various cryptocurrencies via the Coinbase cryptocurrency exchange.
This initiative is designed to appeal to a segment of voters particularly young males who are increasingly involved in digital assets.
The accepted cryptocurrencies include popular ones such as Bitcoin, Ether, and US Dollar Coin, along with lower-value tokens like Shiba Inu Coin and Dogecoin, which have gained popularity due to high-profile endorsements from figures like billionaire Elon Musk.
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It remains unclear whether these contributions will be held as digital assets or converted into cash immediately. The campaign’s approach to liquidation fees is also unspecified.
The campaign asserts that it will adhere to U.S. election laws. This compliance is given the anonymous nature of cryptocurrency transactions which poses challenges in verifying the source of donations.
The Federal Election Commission (FEC) has allowed political committees to accept Bitcoin and other cryptocurrencies since a 2014 advisory opinion.
According to this ruling, cryptocurrencies are considered “money or anything of value” under the law, and contributions must be reported based on their market value at the time they are received.
Donald Trump is not officially the Republican nominee until the party’s convention in July. He is not the first presidential candidate to accept cryptocurrency, independent candidate Robert F. Kennedy Jr. and former presidential candidate Sen. Rand Paul (R-Ky.) have also accepted Bitcoin donations.
His personal investments include approximately $3 million in cryptocurrencies contributing to his estimated $7 billion net worth.
Donald Trump has launched NFT (non-fungible token) projects including a series of digital trading cards which signal his engagement with the digital asset market.
The announcement of cryptocurrency acceptance comes as Trump’s campaign works to close the financial gap with President Joe Biden’s campaign.
In April, Donald Trump and the Republican National Committee (RNC) raised $76 million, outpacing Biden and the Democratic National Committee (DNC) which reported raising $51 million. This fundraising success follows a $90 million haul by Biden’s campaign in March.
Donald Trump’s decision to accept cryptocurrency donations is also a strategic move to position himself against the regulatory stance of the Biden administration.
The announcement ties Biden to Sen. Elizabeth Warren (D-Mass.), a vocal critic of the cryptocurrency industry.
The Donald Trump campaign’s press release frames Biden and Warren as proponents of “socialistic government control” over financial markets.
The House of Representatives is expected to vote on a bill that would shift regulatory oversight of digital currencies from the Securities and Exchange Commission (SEC) to the Commodity Futures Trading Commission (CFTC).
While the bill has bipartisan support and has passed the Senate, the White House has indicated that President Biden would veto the legislation.
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