Tesla and SpaceX CEO Elon Musk is making waves in the political arena by supporting former President Donald Trump in the upcoming elections.
Musk has poured tens of millions of dollars into Trump's reelection campaign, and some believe that could indirectly impact the cryptocurrency market in the coming weeks.
While Musk may not be a central figure in the crypto space, his broad influence and vocal support for decentralization align with the values held by many in the industry. According to Bitwise Chief Investment Officer Matt Hougan, Musk’s support for crypto principles is a positive signal. “Having highly credible and influential people who understand the value of crypto from a freedom/decentralization perspective is a net benefit to the space, period,” Hougan said.
Musk, known for his humorous introduction of Dogecoin, addressed his connection to crypto during a meeting on Oct. 20. While he steered clear of being an active participant in the market, he shared his view on the value of cryptocurrencies, saying, “I think cryptocurrencies are an interesting and probably valuable hedge against centralized control.”
This stance was also acknowledged by Ripple CEO Brad Garlinghouse, who emphasized that the issue is no longer a niche concern. “Voters want real policies that foster innovation and create jobs. Candidates who ignore crypto and blockchain risk seriously losing the support of a growing and informed voter base,” he said.
Garlinghouse criticized the Biden administration’s approach, calling it a “misguided war” on crypto. Musk’s generally pro-market, anti-regulation stance could signal a shift if he takes on a policy role in the Trump administration. Joey Krug, a partner at Founders Fund, pointed to Musk’s history of advocating for less regulation. “Elon’s involvement would be positive for crypto,” Krug said, referring to Tesla’s crypto assets and SpaceX’s use of digital payment solutions.
Ryan Gorman, a partner at communications firm BABs, suggested Musk would likely play a key advisory role on economic policy if Trump wins. “Markets are eager to view a lot of the things Musk does as positive,” he added.
*This is not investment advice.