- Donald Trump has used his Truth Social platform to advocate for Bitcoin mining in the US after meeting with Bitcoin miners
- Matthew Schultz has revealed that Trump expressed understanding and support for Bitcoin miners, emphasizing their role in energy stabilization
- Trump has criticized the digital dollar, viewing Bitcoin as the “last line of defense” against it, reinforcing his advocacy for cryptocurrency
On Tuesday evening, a group of Bitcoin miners convened with former President Donald Trump at his Mar-a-Lago estate, who then used his Truth Social platform to advocate for Bitcoin mining in the US. Matthew Schultz, executive chairman of crypto mining company CleanSpark, revealed the meeting on X, saying that Trump expressed his understanding and support for the sector, emphasizing the role of Bitcoin miners in stabilizing energy supplies and pledging advocacy for them if he returns to the White House. Trump’s support for Bitcoin is partially related to his public criticism of a digital dollar, seeing Bitcoin as the “last line of defense” against it.
Trump Capitalizes on US Bitcoin Mining Growth
Ever since China imposed a ban on Bitcoin mining in 2021, the US has become a central hub, seeing billions of dollars of investment and firms expanding hugely. While the incumbent Joe Biden and his administration have been doing all they can to oust cryptocurrencies, Trump has been increasingly vocal in his support for Bitcoin and other digital assets, integrating them into his campaign strategies to appeal to new voter demographics.
He has reportedly consulted Elon Musk on cryptocurrency matters and promised at a Libertarian Party convention to commute the sentence of Ross Ulbricht, the Silk Road marketplace founder. Additionally, Trump’s campaign is now accepting cryptocurrency donations.
So. I just ran into a guy that’s a huge fan of #bitcoin and LOVES what we’re doing at @CleanSpark_Inc in #georgia and #mississippi and #wyoming. pic.twitter.com/ofSXJGWWfn
— S Matthew Schultz (@smatthewschultz) June 11, 2024
There remains, however, huge skepticism about Trump’s actual understanding of Bitcoin as he has never publicly stated what he likes about it and he has spent years denigrating it as a threat to the US dollar. However, the Central Bank Digital Currency boogeyman has taken the place of Bitcoin in threatening the dollar’s hegemony now, hence why Trump has turned to that.
Political Divide Shows Crypto’s Growth
The meeting occurred amidst growing scrutiny and backlash against crypto miners, particularly concerning their environmental impact and energy consumption. While Democrats have been pushing for increased regulation on the energy usage of Bitcoin miners, prominent Republican figures like Texas Senator Ted Cruz have emerged as industry supporters. The crypto sector is also ramping up its political engagement, contributing significantly to the Fairshake political action committee to support pro-crypto candidates.
Trump’s endorsement of cryptocurrency aligns with his broader advocacy for decentralization, reflecting a mistrust in traditional institutions such as the government and banks. This perspective resonates with many in the crypto community, who view Bitcoin as a means of financial sovereignty and independence.
In stark contrast, the Biden administration has taken a markedly different approach towards cryptocurrencies. Recent actions include vetoing legislation aimed at protecting customers’ rights to use regulated financial institutions for digital assets, implementing “Operation Choke Point 2.0” to restrict banking services for crypto companies, and proposing a 30% tax on energy used for Bitcoin mining. These measures, combined with efforts to gather data on energy contracts of Bitcoin miners, are seen as steps to regulate the industry out of existence.
Change in Sentiment?
The Biden administration’s hostility extends to promoting the CBDC Trump so detests, which many in the crypto space view as a tool for governmental control over financial transactions. Prominent figures like Senator Elizabeth Warren have proposed stringent regulations that could effectively ban Bitcoin mining in the US by imposing anti-money laundering standards typically applied to financial institutions.
Despite these challenges, some Democratic leaders, such as Senator Kirsten Gillibrand and Representatives Ritchie Torres and Wiley Nickel, have shown support for Bitcoin. Over 70 House Democrats recently voted for favorable market structure legislation, indicating a divide within the party on this issue.
As the debate over cryptocurrency regulation continues, the contrasting approaches of Trump and Biden highlight the broader political and ideological divides over the future of digital assets in the United States.
