- Trump supports cryptocurrency, criticizes Democratic regulation efforts at San Francisco fundraiser.
- Biden’s administration seeks to regulate crypto and collaborate with Congress on framework.
- Increasing support for Trump among San Francisco’s tech and crypto community, citing regulatory concerns.
At a San Francisco fundraiser on Thursday, Republican presidential candidate Donald Trump positioned himself as a supporter of cryptocurrency, criticizing Democrats’ efforts to regulate the industry, according to three sources who were in attendance.
The event, which raised $12 million, was hosted by tech venture capitalists David Sacks and Chamath Palihapitiya at Sacks’ home in the upscale Pacific Heights neighborhood. San Francisco-based tech executive and former Trump ambassador to Austria, Trevor Traina, relayed Trump’s statement that he would be a president supportive of crypto, but did not provide direct quotes.
The cryptocurrency industry is actively seeking to influence U.S. politicians as it grapples with increased regulatory scrutiny. This scrutiny intensified following the bankruptcies of major crypto firms in 2022, which rattled investors, exposed instances of fraud and misconduct, and left many investors with financial losses.
Republican National Committeewoman Harmeet Dhillon stated that Trump emphasized the importance of crypto and expressed strong support for the sector. However, he did not provide specific details about his proposed crypto policy.
In contrast, Democratic incumbent Joe Biden, whom Trump aims to unseat in the upcoming Nov. 5 election, signed an executive order in 2022 aimed at promoting the responsible development of digital assets. This led to calls for regulators such as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission to issue guidance and rules addressing risks in the crypto ecosystem.
The Biden administration has expressed a willingness to collaborate with Congress in crafting a regulatory framework for cryptocurrencies. White House spokesperson Robyn Patterson stated to Reuters that the administration is supportive of innovation in digital assets while aiming to shield consumers from the “risks associated with new technologies.”
Despite San Francisco’s predominantly liberal leanings, an increasing number of prominent local venture capitalists and cryptocurrency investors have endorsed Trump. Some cite what they perceive as overly stringent regulation as a motivating factor for their support.
“President Trump made clear that the Biden-Gensler crusade against crypto will grind to a halt within one hour of a second Trump administration.”
Jacob Helberg, adviser to data analytics provider Palantir
Executives from cryptocurrency exchange Coinbase, as well as crypto investors Tyler and Cameron Winklevoss, and other leaders in the crypto industry, attended the event on Thursday, according to Dhillon. A spokesperson for Gemini, the company founded by the Winklevoss twins, did not immediately respond to requests for comment.
David Sacks and Chamath Palihapitiya have publicly discussed their investments in crypto, particularly in Bitcoin.
Sam Bankman-Fried, the founder of the now-bankrupt FTX cryptocurrency exchange, was convicted last year of embezzling from customers. Prosecutors allege that he used these funds to contribute over $100 million to U.S. political campaigns.
