Former President Donald Trump is embracing the digital asset industry in an effort to use cryptocurrencies as a wedge issue in the upcoming election, a new report found.

What Happened: A Bloomberg report detailed how the former president’s shifted stance on cryptocurrencies comes as the crypto industry seeks to energize under-40 voters and secure donations that Trump needs.

It marks a departure from his 2021 position when he criticized digital currencies, calling Bitcoin “a scam.” Trump's supporters hope this move will boost his political fortunes after surviving an assassination attempt on July 13.

During the Republican National Convention in Milwaukee on July 15, Trump met with several crypto companies. His campaign’s wish list includes a hands-off regulatory approach, contrasting with the Biden administration’s crypto crackdown following the FTX collapse and other scandals.

Benzinga future of digital assets conference

Brian Morgenstern, head of public policy at Riot Platforms Inc. (NASDAQ:RIOT), stated that under Trump, bank regulators wouldn’t force banks to close accounts of crypto firms. Trump also aims to promote Bitcoin mining, protect self-custody of cryptocurrencies and prevent the Federal Reserve from issuing a competing central-bank digital currency.

Trump’s crypto policies are still being finalized, but his public remarks and the Republican platform suggest potential winners and losers. More details may emerge during his speech at the Bitcoin 2024 conference on July 27.

Why It Matters: Trump’s recent embrace of cryptocurrencies had a significant impact on his campaign’s fundraising efforts. According to the Wall Street Journal, his campaign raised $3 million in crypto donations last quarter, out of a total $331 million raised. This includes contributions from major industry players like the Winklevoss twins and Kraken co-founder Jesse Powell.

These donations highlight a growing niche appeal within the crypto community, with around 100 people contributing in digital currencies between May and June. This financial backing underscored the potential influence of the crypto sector on the upcoming election and Trump’s strategic pivot to attract younger voters and industry support.

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This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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