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Former President Donald Trump has recently softened his stance on cryptocurrencies, a move that brought him closer to winning the upcoming US election held in November 2024.
Some people think this shift is a strategy to boost his election prospects, while others believe he might use this opportunity to bring more clarity to crypto regulation and push for the U.S. government to adopt Bitcoin as a “strategic reserve.”
Trump’s New Crypto Stance
Historically, Trump used to be cryptic about cryptocurrencies, calling them a threat to the U.S. dollar and criticizing their price swings. However, his recent comments show a new appreciation for the potential of digital currencies.
At the Bitcoin Conference in Nashville, Trump praised how cryptocurrencies could innovate and change the financial world. Meanwhile, in a previous statement, Trump expressed a desire for Bitcoin (BTC) to be mined in America.
Although Trump hasn’t explained his sudden shift towards crypto, he has used the issue to set himself apart from crypto skeptics like Elizabeth Warren.
The crypto industry, with its strong financial backing, also presents a significant fundraising opportunity for Trump. Recently, he received $4 million in political donations, including $1 million each from crypto entrepreneurs Tyler and Cameron Winklevoss.
Support from JD Vance
Adding to the positive outlook is Trump’s vice-presidential pick, JD Vance, who is known for his strong support of Bitcoin and blockchain technology. During his 2021 Senate campaign, Vance revealed he owned more than $100,000 in Bitcoin.
This year, Vance proposed new legislation to clarify how different cryptocurrencies should be regulated, either by the SEC or the CFTC. Meanwhile, his pro-crypto views align with the idea that digital currencies can improve financial inclusion and challenge traditional banks.
U.S. Crypto Adoption Soars
BlackRock’s push for the first Bitcoin spot ETF in late 2023 and early 2024 has led to a surge in cryptocurrency adoption in the U.S. Following the ETF’s approval, more financial institutions have entered the crypto space, driving increased mainstream acceptance.
According to Security.org’s 2024 Cryptocurrency Adoption and Sentiment Report, 40% of American adults now own cryptocurrency, up from 30% last year. Among current holders, 63% plan to buy more in the next year, and female ownership has risen from 18% to 29%.
Additionally, 21% of non-crypto owners are now more likely to invest due to the new Bitcoin ETF, and 46% believe Bitcoin ETF approvals will benefit the blockchain industry.