Donald Trump Campaign to Start Accepting 'Cryptocurrency' for Election Funds

The Trump campaign has announced that they will soon start accepting funds through cryptocurrency. The campaign introduced a fundraising page where "any federally permissible donor" can contribute to its political committees using any crypto asset. The move is being speculated as a statement of solidarity of those opposing the "socialistic government control," as reported by CNBC. 

According to a press release from former President Trump's campaign, "any cryptocurrency accepted through the Coinbase Commerce product." Cryptocurrencies, as digital assets, offer a decentralized means of trade over the Internet, independent of the traditional banking system.

Trump’s campaign is now accepting a variety of popular cryptocurrencies, including Bitcoin, Ether, and US Dollar Coin, as well as smaller-value coins that are favored by internet personalities, such as Shiba Inu Coin and Dogecoin. Crypto donations will be treated as in-kind contributions, akin to stock gifts. Subsequently, the campaign can choose to either convert the digital currency into cash or retain it.

The businessman-turned-politician's campaign intentions regarding holding or selling the cryptocurrency, as well as any associated liquidation fees, remain uncertain. Although the campaign asserts its commitment to adhering to U.S. election laws, the anonymity inherent in cryptocurrencies poses challenges in verifying the true source of the funds.

Trump has previously garnered millions in cryptocurrency through personal ventures such as his Trump Digital Trading Cards non-fungible token projects and the release of his MAGA coin last August. Julia Krieger, a Coinbase spokeswoman, highlighted that cryptocurrency transcends political affiliations and enables efficient money transactions due to its cost-effectiveness and speed per AP News.

While certain states prohibit cryptocurrency donations in state races due to existing campaign finance laws, the Federal Election Commission permits committees to accept Bitcoin as contributions. A 2014 advisory opinion from the commission determined that bitcoin qualifies as "money or anything of value" under the law. Accordingly, political committees are instructed to assess the contribution's value based on the market value of Bitcoin at the time of receipt.

The presidential campaign for independent candidate Robert F. Kennedy Jr. is now accepting bitcoin donations too. In traditional currency, Biden and the Democratic National Committee disclosed that they raised over $51 million in April. This amount fell significantly short of the $76 million reported by Trump and the Republican Party for the same month.

In December 2023, Trump offered a limited release of NFT trading cards that could be purchased with cryptocurrency. Earlier this month, he hosted an extravagant dinner for his NFT supporters at the Mar-a-Lago club.

As per Politico's report, the former President rallied cryptocurrency enthusiasts to support his cause, asserting that the Biden administration's stance toward cryptocurrency is unfavorable. Biden's campaign on the other hand has highlighted their skepticism for crypto-funding of polls. Just hours before the Trump campaign began appealing to crypto donors, Biden's team sent a fundraising text cautioning supporters that "cryptocurrency executives and oil barons are coming out of the woodwork for Trump."