Just before the three-day Bitcoin 2024 conference got underway in Nashville this week, Tyler Winklevoss, the bitcoin billionaire who founded the cryptocurrency exchange Gemini with his twin brother Cameron, had harsh words for presumptive Democratic presidential nominee Kamala Harris. He was incensed that after years of tension between the Biden administration and the crypto industry — many in the space have complained of a regulatory crackdown — the vice president had declined an invitation to the annual bitcoin extravaganza.
“She can’t even take the first step and show up to start mending fences,” Winklevoss tweeted on Wednesday. He added, ominously: “Our industry won’t forget this. We will show no mercy in November.” Earlier that day, Bitcoin Magazine CEO David Bailey, the organizer of the event, claimed in a tweet that a Democratic donor had told him Harris privately says that “Bitcoin is money for criminals.” (While the sum of money collected annually through crypto-based crime is in the billions, this represents a relatively small percentage of transactions.) Meanwhile, feverish rumors that an increasingly crypto-friendly Donald Trump might use his keynote speech at the conference to announce plans for adopting Bitcoin as a U.S. strategic reserve asset caused the price to surge. It had also soared after he survived an assassination attempt earlier this month, temporarily boosting confidence in his election bid.
But Harris had every reason to feel unwelcome at a bitcoin convention. Chief among them is that tech oligarchs and the crypto crowd have already thrown their lot in with Trump as they seek a freer hand in the economy of digital assets. Trump, meanwhile, has aggressively courted the movers and shakers of crypto finance, trying to sell himself as “the crypto president” who can reverse Joe Biden’s attempts to rein in the sector — this despite commenting himself in 2021 that bitcoin “seems like a scam.” In Saturday’s speech, Trump said that if he wins, “the United States will be the crypto capital of the planet and the bitcoin superpower of the world,” adding: “If crypto is going to define the future, I want to be mined, minted, and made in the USA. It’s not going to be made anywhere else. And if bitcoin is going to the moon, as we say … I want America to be the nation that leads the way, and that’s what’s going to happen. So you’re going to be very happy with me.”
Trump outlined several steps he would take to aid the crypto industry. “The day I take the oath of office, Joe Biden and Kamala Harris’ anti-crypto crusade will be over,” he said. Trump pledged, to great applause, that he would immediately fire Securities and Exchange Commission chair Gary Gensler, and replace him with an industry-friendly regulator. He said he would create a presidential crypto advisory council to create a new regulatory framework that would “benefit” the industry. And he warned the audience that if Democrats win in November, “every one of you will be gone. They will be vicious. They will be ruthless. They will do things that you wouldn’t believe.”
The remarks should fuel even more donations from crypto bulls already betting on Trump. Bitcoin Magazine‘s Bailey, for his part, committed to a goal of raising $15 million for Trump’s campaign during the Nashville event. Last month, the Winklevoss brothers — whose Gemini this year settled a lawsuit from the state of New York over a frozen crypto lending program, returning $2.2 billion to customers and paying a $37 million fine — pledged $1 million in bitcoin each to Trump’s campaign. The amounts exceeded the $844,600 maximum that the Trump 47 Committee, the joint fundraising group to which they donated, can legally accept from an individual, and the Winklevosses had the difference refunded. (Among other spending on GOP campaigns, the committee funnels money toward covering Trump’s legal bills.) They also each chipped in $250,000 for America PAC, the super PAC through which Elon Musk and allies are backing Trump.
Other America PAC donors include Shaun Maguire of VC firm Sequoia Capital, who has expressed interest in “legitimizing” crypto and announced a $300,000 Trump donation with a statement that argued “Democrats have been trying to regulate technology — especially open source AI and crypto in ways that incentivize the best builders to build outside of America.” He has poured half a million dollars into the super PAC. Ken Howery, a co-founder along with Peter Thiel of VC firm Founders Fund, which is heavily invested in crypto and blockchain technologies, has given $1 million. Another million came from Antonio Gracias, the former director of Tesla thought to have helped engineer the automaker’s purchase of $1.5 billion in bitcoin in 2021. His firm, Valor Equity Partners, invests millions in crypto businesses. Joe Lonsdale, co-founder of the software company Palantir and managing partner of the firm 8VC, gave $1 million to America PAC as well. Earlier this year, he mused on how artificial intelligence and crypto technologies could benefit one another.
And while he hasn’t donated to the PAC, Silicon Valley venture capitalist and close Musk associate David Sacks has given thousands directly to the Trump campaign. Two months ago, Sacks said he preferred Trump’s sudden crypto cheerleading to the Biden administration’s scrutiny. “It might have been pandering,” Sacks said at a business summit in May. “But at least he’s saying the right thing and Biden is not saying the right thing. At least if he’s pandering, there’s a higher chance that maybe he’ll do the right thing.” (Last year, on the tech and investment podcast All-In, Sacks floated the unsubstantiated claim that SEC chair Gensler, along with Sen. Elizabeth Warren, had forged an “alliance,” with Warren promising “she will make him Treasury Secretary if he basically destroys crypto in the U.S.”)
It’s not just about Trump, either. The super PAC Fairshake, bankrolled by crypto firms including Coinbase, Jump Crypto and Ripple, has become a major force in the financing of congressional races, backing candidates deemed allies of the industry and helping to unseat opponents including progressive Reps. Jamaal Bowman and Katie Porter with critical ads. It has received tens of millions from the Winklevosses and venture capitalists Marc Andreessen and Ben Horowitz of the firm Andreessen Horowitz, which invests in crypto companies. (Andreessen and Horowitz recently pledged to donate to Trump; Horowitz says the Biden administration “basically subverted the rule of law to attack the crypto industry.”) As of the end of June, Fairshake had close to $120 million in cash on hand, while two other crypto super PACs, Protect Progress and Defend American Jobs, have more than $5 million and nearly $2 million, respectively. The former has spent on media attacking Democrats pushing for consumer protections in crypto; the latter has doled out more than $15 million on endorsements for Republicans in the 2024 election cycle.
But while Trump had planned to ride this wave of cash by going after Biden for his record on cryptocurrency, it may be hard to use the same line against Harris, seen by some as potentially amenable to these businesses due to her background in tech-saturated San Francisco politics. And if a few major investors were stung to be snubbed by Harris this weekend, it’s still unclear what position she’ll take on the issue. On Friday, the Financial Times reported that Harris advisers have reached out to people close to crypto firms to try to “reset” relations with the industry.
Even before Biden exited the race, the administration had made efforts to alleviate the bad blood between the White House and crypto evangelists, and the House passed a pro-crypto bill in May with support from 71 Democrats. Although Biden was not in favor of it, he did not say he would veto the legislation.
All the same, it would be ridiculous for crypto’s elite to try to disentangle their fortunes from Trump’s at this point, regardless of the direction Harris takes. They’ve made their pick and infused his campaign with considerable wealth, hoping for a president who takes a hands-off approach to their tokens and trading platforms. Now they just have to hope it’s enough to send Trump’s stock to the moon.
