Former US President Donald Trump now has the support of venture capitalists and other top Silicon Valley players to reclaim the US presidency. Several speculations about the possible reason for this unexpected support have arisen.
Commenting on the matter, Billionaire Mark Cuban says crypto is the catalyst. In a July 17 X post, Cuban noted that having Trump as president will create a crypto-friendly atmosphere for crypto businesses.
Trump’s Pro-Crypto Stance and Silicon Valley’s Support
Crypto community members have criticized President Biden’s administration for allegedly backing the US SEC’s continued crackdown on digital assets firms.
The securities regulator has fought against several crypto exchanges and crypto-related businesses in its efforts to regulate the industry.
The SEC believes its actions are for the good of Americans and to protect investors. Top crypto players lament that its moves stifle innovation and make the business environment hostile.
Moreover, Biden’s administration proposed a 30% tax on crypto miners, which many believe aims to kill Bitcoin and the broader crypto industry. Many argue that these issues reduce Joe Biden’s odds of retaking the US presidency in the upcoming election.
Meanwhile, Donald Trump presented his campaign with a pro-crypto proposition. He pledged to create a friendlier atmosphere for Bitcoin miners and the broader crypto ecosystem. Many crypto enthusiasts have supported Trump’s stance.
Also, top Silicon Valley figures, including Elon Musk, Ripple, Coinbase, and Ark Invest’s Cathie Wood, have recently embraced Trump.
Further, Andreessen Horowitz’s founders, Marc Andreessen and Ben Horowitz, Joe Lonsdale, co-founder of Palantir Technologies, and the Winklevoss twins have donated cash and support for Trump.
Why Top Silicon Valley Figures Embrace Trump?
Billionaire Mark Cuban is known for publicly criticizing the SEC, especially after his legal tussle with the regulator over insider trading accusations.
Cuban has supported Trump, who appears to be racing ahead of Biden in the election campaigns.
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Here is a contrary opinion on the emergence of Silicon Valley support for former President Trump. Which like all my opinions on here, probably won’t be popular.It’s a bitcoin play.
Not because the former President is a far stronger proponent of crypto. That’s nice.…
— Mark Cuban (@mcuban) July 17, 2024
Cuban explained that Silicon Valley supports Trump not just because he is a stronger crypto proponent. Instead, having Trump as President makes it easier to operate a crypto business because of inevitably required changes at the SEC.
With Trump seemingly leading the 2024 US presidential race, Cuban believes Bitcoin is well positioned for a massive price rally. “You can’t align the stars better for a BTC price acceleration,” he noted.
Moreover, it is unsurprising that Silicon Valley leans towards Trump for the US presidency. Most Silicon Valley firms supporting Trump have directly and indirectly committed to crypto. For instance, venture capitalist Andreessen Horowitz has a crypto subsidiary.
Cathie Wood’s Ark is famous for its aggressive purchase of Coinbase shares and is also one of the issuers of spot BTC ETF in the US.
Coinbase, a Silicon Valley-based crypto exchange, created the Fairshake SuperPAC, a political action committee. This PAC aims to support pro-crypto candidates and pull down anti-crypto opponents.
Elon Musk is also known for his support of meme coins like Dogecoin. His firm, Tesla, is one of the largest Bitcoin holders. At the same time, Trump’s running mate, Senator J.D. Vance, has links with Silicon Valley.
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
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