Donald Trump took the stage at the world's biggest bitcoin conference last month, delivering a speech of unprecedented support for the cryptocurrency industry. I watched in Nashville along with thousands of others as the Republican presidential nominee doled out promises to promote bitcoin mining, keep the digital asset on the government's reserves and—to deafening cheers —fire the industry's regulatory nemesis, Securities and Exchange Commission head Gary Gensler. This full-throated political endorsement has been a sudden and welcome boon for the Web3 community of crypto investors and blockchain builders.
The packed venue at a spillover side event, where people listened, laughed and high-fived, showed a split screen of the GOP maestro and a spiking price chart as he predicted bitcoin would overtake gold. Trump benefited too. Flush super PACs and industry luminaries such as the Winklevoss twins have been generous with their donations to the nominee, who also hosted a private meeting where a ticket cost more than $800,000.
As historic as Trump's appearance was, more important is the response it has forced upon his opponent, Kamala Harris. In response, tThe Democrats have shifted their stance, eager not to lose out on potential contributions. Advisers to Harris have reached out to billionaire crypto advocate Mark Cuban to understand the industry better and have reportedly coordinated meetings with major players such as stablecoin issuer Circle.
This is a remarkable about-face given that the Democratic-led federal government has stymied crypto's progress over the past few years through an operation known as Chokepoint 2.0. This initiative sought to limit the industry's growth by cutting off its access to traditional financial services and by wielding the SEC as an enforcer in legal battles with the likes of Coinbase and Ripple.
But the recent bipartisan courtship signifies an inflection point for cryptocurrency, ensuring its continued rise regardless of the election's outcome. Even third-party candidate Robert Kennedy was advocating for crypto in Nashville.
"The political influence of crypto could not have been more evident at this year's BTC conference. Attracting two of the major candidates for the presidency, crypto has cemented itself as a major influence in the political arena," said Christopher Miglino, CEO and co-founder of DNA, which gathered investors and startup leaders for days of intense networking in Nashville. "It's time for America to join the rest of the world and embrace the changes that will happen with or without us."
The dam began to break earlier this year as Trump started wooing the industry earlier this year. Then, in the face of that kind of pressure, In May, dozens of Democrats, including Senate Majority Leader Chuck Schumer, backed a legislative move in May to overturn SEC guidelines that make it difficult for banks to hold crypto. Nashville opened the floodgates.
The Overton window, which represents the range of policies politically acceptable to mainstream voters, has now significantly moved in favor of cryptocurrency. The rehabilitation of the industry's image—even as the former heads of two of the world's largest exchanges sit in U.S. prisons—has been a political surprise. Only three years ago, , especially because it was precipitated by Trump, who himself only three years ago dismissed bitcoin as a "scam." The change highlights how mainstream attitudes toward crypto have evolved, driven by increasing recognition of the industry's potential benefits and the growing influence of its proponents. As both major political parties move to embrace the crypto sector, the once-niche industry is now firmly positioned within the realm of mainstream acceptance and support.
Startups Must Seize the Moment
Startups in this sector should seize the moment to prepare for a more supportive business environment. I have been in the space for seven years now and have never seen such a favorable alignment. I know that the innovators and builders in the industry can harness their battle-hardened entrepreneurial skills to prosper in these favorable conditions.
U.S. companies in particular should double down on their efforts, capitalizing on the potential regulatory clarity and increased acceptance that are likely to stem from this election season. This is a prime opportunity for these companies to strengthen their market position, enhance their technological innovations and expand their customer base. Verticals such as the tokenization of real-world assets, decentralized physical infrastructure for the likes of video streaming and spatial computing industries, and even novel Web3 gaming platforms all stand to benefit from the new political dynamic.
Foreign companies too—especially those from Asia, which have thrived and found product-market fit in their own dynamic region—should also take note now. The evolving U.S. landscape presents an ideal time to plan their internationalization strategies and tailor their marketing efforts to appeal to the American audience. By strategically positioning themselves now, these companies can benefit from a more receptive and robust market, ensuring they are well-placed to grow as the U.S. embraces the crypto revolution. As Trump said, the United States "should build the future, not block the future."
That future will be brighter for crypto no matter who wins the White House. Trump moved first, but with Harris forced to follow, Nashville will be remembered as the historic turning point when crypto could finally be called mainstream.
Saul Hudson is a managing partner at Angle42, a strategic communications agency for fast-growing startups in the Web3, AI and other emerging technology industries.