Bitcoin Goes To Washington: The Birth Of The Crypto President
- Posted: 22.08.24
Bitcoin Goes to Washington: The Birth of the ‘Crypto President’
Lately, Bitcoin seems to be making headlines for more than just market movements—it’s entering the political arena.
In the space of about three weeks, we’ve had:
- Political candidates propose rival ways to integrate BTC into the US financial system
- Trump headline the BTC conference
- A US Senator formally propose a Bitcoin Strategic Reserve
- Polymarket – crypto political betting market – crossed $1 billion in total transactions
- Political crypto donations on the rise
Bitcoin went to Washington, and it’s making an impression. Let’s explore what Bitcoin’s political phase means for the developing crypto economy.
Trump and the Bitcoin Conference
Every conversation seems to include Donald Trump, so let’s start there. During his headline speech in Nashville, Trump made several notable promises:
- Regulatory transparency and a push to make the US the “crypto capital of the world”
- A pledge to abandon efforts toward a US central bank digital currency (CBDC)
- Establishment of a strategic bitcoin reserve
These pledges are currently just talk, with no guarantee they will be realized even if Trump is re-elected. Nonetheless, the emphasis on Bitcoin is significant and extends beyond Trump. Robert F. Kennedy Jr., a third-party candidate, also discussed the concept of a Bitcoin reserve, proposing an executive order to purchase bitcoin daily until the Federal Reserve amassed 4 million bitcoins.
RFK and “Bitcoin Fort Knox”
Kennedy’s idea, likened to a “Bitcoin Fort Knox”, shows how the concept of a cryptocurrency reserve is gaining traction. This idea is drawing interest from Trump’s conservative supporters as well as Kennedy’s more libertarian base.
Democrats Push to be more BTC-friendly
The Democratic candidate for president, Vice President Kamala Harris, has been historically anti-crypto, similar to Trump in his earlier years. However, voices within her party are encouraging her to adopt a more pro-crypto stance. Democratic Representative Ro Khanna, who attended the Bitcoin conference, has been in discussions with Harris and is organizing further crypto-focused events.
While Harris will not attend these conferences directly, her decision to send representatives indicates a shift in her campaign’s approach to crypto. As Bitcoin’s popularity and cultural influence grow, all political factions are being compelled to address it more seriously.
The Increasing Appeal of a “Bitcoin Strategic Reserve”
Interest in a Bitcoin reserve is growing beyond the political class. While political factions view it as a means to attract voters, there is also a belief that such a reserve could have significant financial impacts. According to Lewis McLellan, editor of the OMFIF’s Digital Monetary Institute, acquiring 200,000 bitcoins a year over five years could significantly impact the price of Bitcoin by reducing its free-floating supply, thus attracting campaign finance donations from those with substantial bitcoin holdings.
Two Ways Washington Uses Bitcoin
Washington’s political class is already leveraging Bitcoin and crypto in two main ways: campaign donations and political betting. Trump’s campaign, which has raised over $4 million in crypto donations, was the first to accept such contributions. As crypto donations become more normalized, they could play a larger role in campaign financing.
Polymarket, a crypto-based political betting platform, has also gained traction, reaching over $1 billion in total transactions. This platform integrates crypto culture with politics, attracting significant participation and spawning competitors like Drift Labs.
Conclusion
The 2024 US election cycle highlights Bitcoin’s growing political influence. With politicians increasingly viewing crypto as a mainstream issue, this trend could lead to greater crypto adoption and integration into the financial system. Whether through campaign donations or strategic reserves, Bitcoin is becoming a more prominent feature of the political landscape.