(Kitco News) – Longtime crypto fans have witnessed an about-face in public perception of digital assets in 2024 as the launch of the first spot Bitcoin (BTC) exchange-traded funds (ETFs) in the U.S. and the Securities and Exchange Commission’s (SEC) approval of spot Ether ETFs have brought new legitimacy to the asset class.
But it's not just the belated approval of crypto-related ETFs that is shining a new light on the industry as politicians from both sides of the aisle have started warming to crypto proponents amid a ramp-up in the 2024 U.S. election season – where crypto is proving to be a pivotal issue.
The most recent flip-flop in crypto messaging came from none other than President Joe Biden’s re-election campaign, which has begun reaching out to cryptocurrency industry players to seek guidance on "crypto community and crypto policy moving forward," according to a report by The Block.
As part of their outreach, Biden’s re-election team has called several crypto experts, including some industry players the President rebuffed on previous occasions, one source said.
This olive branch to industry advocates represents a notable shift from Biden’s previous messaging on the industry, which he kept largely at arm's length when he wasn’t proposing a crackdown on the Bitcoin mining industry in the U.S. and threatening to veto a recent pro-crypto bill approved by Congress.
His campaign's newfound interest in appealing to the crypto voting block reportedly started about two weeks ago, roughly the same time as crypto-related issues trended in the news and Donald Trump went all-out in appealing to crypto proponents.
Speaking on the Unchained podcast on Friday, Senator Cynthia Lummis (R-WY), a long-time crypto proponent, said she believes the recent approval of two pieces of pro-crypto legislation in Congress served as a wake-up call for the Biden Campaign.
“I don’t think they anticipated how strong the bipartisan vote would be on this,” Lummis said, adding she believes there’s now a bipartisan majority in both houses to finally pass crypto legislation.
On May 21, the Trump campaign officially announced that it would accept cryptocurrency donations. On Friday, Trump said he would “ensure that the future of crypto and Bitcoin will be made in the USA,” and “support the right to self-custody to the nation’s 50 million crypto holders” during a campaign speech at the 2024 Libertarian National Convention.
A Thursday report from Bloomberg suggests Trump's crypto position is set to get a social media boost as the former president is reportedly talking with Elon Musk to better craft his cryptocurrency policy to reach new voters, according to a source familiar with the talks.
The discussion also includes the possibility of inviting Musk to speak at the Republican convention, but the two sides are reportedly still far from making a final decision. It’s currently unclear if the Trump campaign has broached the topic directly with Musk or if they are working through his intermediaries.
In response to the Bloomberg report, Musk tweeted, “Pretty sure I’ve never discussed crypto with Trump, although I am generally in favor of things that shift power from government to the people, which crypto can do.”
Bloomberg also reported that Trump and Musk are exploring ways for the tech entrepreneur to take on an advisory role if Trump wins a second term in November. The exact nature of that arrangement is still under discussion, a person familiar with the talks said. The Wall Street Journal was the first to report on the talks.
“President Trump will be the only voice of what role an individual plays in his presidency,” Trump spokesman Brian Hughes said in a statement. “Many of the nation’s most important leaders in technology and innovation are concerned with the damage done to their industry by Biden’s failures.”
Up to this point, Musk has stayed relatively neutral on the presidential election. While he attended a donor event for Trump in March, after the event concluded he said that he had no plans to donate to either Trump or Biden.
The Biden campaign is attempting to use the Trump-Musk crypto talk and advisory role reports to their advantage, saying it shows that Trump only cares about the opinions of other billionaires and deep-pocket donors.
“Trump is selling out America to pay his legal bills and put himself in power, while all billionaires like Elon see is a sucker: They know if they cut him campaign checks, he’ll cut their taxes while he cuts Social Security and other benefits for the middle class,” campaign spokesperson James Singer said in a statement Thursday.
According to sources who spoke with The Block, the overtures from the Biden campaign have been well received by many in the crypto industry; however, according to one individual, some industry players remain skeptical and view the outreach as "too little, too late."
