How can the encryption industry get on board with the White House?

More than a year ago, David Bailey and a group of Bitcoin executives pitched Bitcoin to Donald Trump at Mar-a-Lago. This industry, which Trump once called a "scam," is looking for political allies.

At Mar-a-Lago, executives introduced the economic benefits of Bitcoin to Trump and requested him to post supportive messages on social media. That evening, Trump posted a message on Truth Social that was completely in line with the executives' proposals.

This is one of the early successes of a high-risk lobbying campaign in the encryption industry. The campaign invested a large amount of money into Trump and received substantial returns. Bitcoin's price skyrocketed to over $100,000, and supporters made significant profits. Crypto advocates, who were previously marginalized by the Biden administration, can now approach Trump's White House.

All of this stems from one of the most intense lobbying battles in recent history. Industry executives, lobbyists, campaigners, and Trump's business associates and family members meticulously orchestrated a dispersed yet astonishingly effective "influence operation" that transformed Trump from a Bitcoin skeptic into one of the most important supporters in the encryption space.

This kind of influence operation, while legal, appears particularly prominent under Washington's standards, as it combines the president's personal interests with the strategies long used by corporate lobbyists.

From "scam" to "modern art or whatever"

Trump's attitude towards encryption began to soften after he engaged with his longtime business partner Bill Zanker. Zanker pitched a series of non-fungible tokens (NFTs) to Trump, each featuring a cartoon image of Trump. These NFTs went on sale in December 2022 and sold out almost immediately.

In November 2023, cryptocurrency enthusiasts who purchased NFTs were invited to meet Trump at Mar-a-Lago. When speaking to the guests, Trump seemed uncertain about how to describe this new financial product—"modern art or whatever," he said. But he was sure that he made a lot of money from these images sold for $99 each.

In early May 2024, Trump held another event for NFT holders at Mar-a-Lago. During a free question-and-answer session, Trump promised that supporters could make campaign donations using digital currency. Two weeks later, the Trump campaign team officially announced this policy.

"Courtship" During the Campaign

In early 2024, a small group of encryption executives began to "court" Trump. David Bailey, the CEO of BTC Inc., led this effort, closely collaborating with Tracy Hoyos-López, who has valuable private connections.

Mr. Bailey and Trump held their first meeting at Trump Tower in May 2024. They believe that encryption investors could become an important voting bloc and pointed out that Elizabeth Warren is one of the main opponents of the industry.

Five days later, Trump promised at the Liberal Party nomination conference to "stop Joe Biden from cracking down on encryption" and to "keep Elizabeth Warren and her cronies away from your Bitcoin."

Soon, millions of dollars in encryption funds began to flow into Trump's campaign team. Some founders of cryptocurrency exchanges that had been sued by the SEC donated large sums to groups supporting Trump.

Mr. Bailey is also actively seeking support. He arranged for Bitcoin mining executives to visit Mar-a-Lago and stated that he has raised $30 million to support Trump's campaign. He also ensured that Trump could attend the annual Bitcoin conference as the keynote speaker.

At the Bitcoin conference in Nashville, Trump promised to establish a "strategic national Bitcoin reserve." He declared: "I will be the pro-innovation, pro-Bitcoin president that America needs."

"Struggle for Power" After Victory

After Trump's victory, almost every figure in the encryption world is vying for the opportunity to get on board the White House. Cryptocurrency companies and their executives spent $9.9 million on lobbying in the first three months of 2025.

Ripple can be said to be the most proactive "pursuer" of Trump. The company donated nearly $5 million to Trump's inauguration committee and spent another $400,000 on lobbying in the first three months of 2025.

Ripple CEO Brad Garlinghouse encouraged Trump and his advisors to expand the proposal for Bitcoin reserves, hoping that the U.S. would reserve other types of encryption, including Ripple's XRP.

Some industry peers are unhappy with Ripple's actions. Notable encryption executive Charles Hoskinson mocked Ripple for "spending $5 million to have dinner with Trump."

Mr. Hoskinson has his own policy agenda. He donated $250,000 to Trump's inauguration committee and paid $1 million to attend the fundraising dinner at Mar-a-Lago. However, his invitation was canceled at the last moment.

"I made a promise"

A dinner in March became a golden opportunity for Ripple. A representative from Ripple proposed to Trump to include XRP in the reserves and pointed out that the company had generously supported him.

The next morning, Trump announced on social media that he had instructed to advance the encryption strategic reserve plan, which will include several digital currencies, including XRP.

This news has shocked the encryption industry. The coins listed by Trump are not considered to be on the same level as Bitcoin.

Almost immediately, Trump was besieged by allies and advisors. Amidst strong opposition, encryption czar David Sacks posted that Trump plans to establish a reserve that includes "Bitcoin and other top cryptocurrencies."

Trump subsequently revised the original post, expanding the list of currencies to include Bitcoin and Ethereum. This update directly benefited his family's encryption company World Liberty Financial by $33 million.

Ultimately, the reserve plan took on a milder form. On March 6, Trump signed an executive order establishing a federal reserve that includes Bitcoin acquired by the government through legal seizures, and promised to consider acquiring more Bitcoin in the future.