David Bailey, an entrepreneur and Bitcoin advisor to former President Donald Trump, is aiming to secure $200 million for a Political Action Committee focused on promoting Bitcoin’s benefits for the U.S. economy.
As the founder of Bitcoin Magazine and BTC Inc., Bailey has been a prominent figure in Trump’s political campaigns, especially regarding Bitcoin initiatives. “I’ve gathered a lot of insights into politics this year. I’m considering pushing Bitcoin’s priorities through a PAC with a budget between $100 million and $200 million,” he noted in a post on X, referencing his Bitcoin finance firm, Nakamoto Holdings.
Political Action Committees (PACs) in the U.S. gather funds through donations to support specific candidates, parties, or causes. Fairshake is a notable crypto-centric PAC backed by firms like Coinbase and Ripple Labs, which previously invested around $130 million in candidates supporting their interests during the 2024 elections.
Focusing on Bitcoin’s Future
One major goal of Bailey’s proposed PAC is to elevate Bitcoin’s price to $10 million, as he believes this is a “long-term” vision for the cryptocurrency. He’s invited users to share their thoughts on key issues the PAC should prioritize. Some suggestions include eliminating the capital gains tax on Bitcoin transactions and securing individual rights related to the asset.
Alex Gladstein from the Human Rights Foundation also offered ideas, advocating for legal shields for open-source developers, boosting Bitcoin education in high schools, and allowing foreign nations to settle debts with Bitcoin.
Bitcoin investor and Texas Bitcoin Foundation advisor Tuur Deester emphasized the importance of a return to full reserve banking for the good of America’s economy, stating that banks should safeguard all client deposits.
Suggestions from the community have also included nonpartisan Bitcoin promotions, funding for more Bitcoin ATMs, and federal support for Bitcoin-related educational initiatives.
Caution from Industry Leaders
Bailey’s company, Nakamoto Holdings, had previously raised $300 million and launched ventures like hedge fund 210K Capital. However, Charles Allen, CEO of BTCS, advised Bailey to be cautious. “Your obligations are to shareholders. If you link political endeavors to public company funds, you risk legal repercussions,” he cautioned.
Bailey acknowledged the advice, stating it was “good feedback” but not a concern for Coinbase. He added, “Shareholders may question if that approach suits a pro-crypto environment. The judgment on that ultimately depends on how significant the investments are.”
The conversation continues around how PACs are formed, which typically involves designating a treasurer, registering with the U.S. Federal Election Commission, and submitting financial reports.
Political Engagement of Cryptocurrencies
The cryptocurrency sector spent over $134 million during the 2024 elections, resulting in a number of officials aligning with crypto-friendly policies. For instance, James Walkinshaw, a Democratic nominee replacing the late Jerry Connolly, triumphed in the party primary after benefiting from significant PAC funding exceeding $1 million.
Meanwhile, Fairshake has reported about $141 million in assets available for future elections.
