Trump asserts personal credit for creating cryptocurrency, coinciding with family's financial gains
In a surprising turn of events, President Donald Trump has framed cryptocurrency as a strategic asset in a geopolitical competition against China, marking a shift from his previous scepticism towards the digital currency. However, this newfound enthusiasm for cryptocurrency is not entirely new, as Trump's involvement in the sector predates his 2024 campaign.
During his second term, Trump was a partial owner of World Liberty Financial, a crypto company, and reported $57 million in token sales from this venture. He also earned $1.1 million in licensing fees related to crypto activities in 2024. Trump's crypto involvement was active during the early months of his second term, with exclusive events such as a dinner for top holders of his $TRUMP memecoin at his golf club, leveraging his presidential role to promote his cryptocurrency brand.
Trump's engagement in crypto extends beyond token sales. He named a crypto czar, David Sacks, a Silicon Valley venture capitalist, even before taking office in his earlier term, indicating a longstanding interest in digital currencies.
Trump's recent public pivot from a crypto skeptic to an ardent supporter appears to be a strategic alignment with evolving economic landscapes and voter demographics, particularly the tech-savvy electorate. While his vocal embrace of crypto is recent, his direct business involvement is not.
At a White House press conference, Trump declared that if the U.S. did not have cryptocurrency, China would dominate the industry. This statement follows a period of intense crypto lobbying and pro-crypto moves by his administration, including the passing of the Genius Act, which secures a law for stablecoins, and the announcement of the creation of a U.S. crypto reserve.
The Trump administration has also actively worked to legitimize decentralized finance (DeFi) and blockchain technology. This regulatory embrace and market rally can be attributed to the Trump administration's actions and the family's growing crypto empire. The crypto market has recovered colossally from the "crypto winter" of recent years, with the collapse of exchanges like FTX.
Bitcoin, the pioneer of cryptocurrencies, is currently trading over $105,000, and the total value of the crypto market is nearly $3.4 trillion. Trump's rebranding of cryptocurrency follows a period of intense crypto lobbying and pro-crypto moves by his administration, and his public anointment of cryptocurrency is a powerful, if revisionist, seal of approval, despite his previous objections to it.
Trump painted a picture of a failing crypto industry that he single-handedly rescued and transformed into a powerful one. However, it's important to note that the history of cryptocurrency began with Bitcoin's creation in 2009 and was shaped by innovators like Ethereum co-founder Vitalik Buterin. Trump's positioning of his involvement in cryptocurrency as a long-held secret, framing himself as the unlikely saviour of crypto who saw its potential when no one else did, may overlook this historical context.
Regardless, Trump's public stance on cryptocurrency is a significant development in the industry, and its implications will be closely watched as the 2024 presidential race heats up.
- Gizmodo reported that Trump, during his second term, was a part-owner of World Liberty Financial, a crypto company, and earned $1.1 million in licensing fees related to crypto activities in 2024.
- In his earlier term, Trump named David Sacks, a Silicon Valley venture capitalist, as his crypto czar, indicating a longstanding interest in digital currencies.
- Following a period of intense crypto lobbying and pro-crypto moves by his administration, Trump painted a picture of a failing crypto industry, claiming he single-handedly rescued and transformed it into a powerful one, despite his previous objections to it.
