David Bailey, an entrepreneur and Bitcoin advisor to former US President Donald Trump, is on a mission to raise $200 million for a political action committee (PAC) aimed at promoting Bitcoin’s interests within the United States. Bailey, who has a history as a serial entrepreneur and is the founder of Bitcoin Magazine and BTC Inc., played a significant role in advising Trump during his presidential campaign, particularly regarding the president’s favorable stance towards Bitcoin.
In a recent post on X, Bailey expressed his ambition to establish a PAC, which he believes could be funded with $100 million to $200 million through his company, Nakamoto Holdings, which serves as his Bitcoin treasury. He mentioned, “I’ve learned a lot about politics and how the game is played this year,” indicating his evolving understanding of political dynamics.
Understanding Political Action Committees
Political action committees in the United States are established to gather donations and subsequently allocate those funds to support specific political candidates, parties, or causes. One of the notable PACs in the crypto sector is Fairshake, which counts major crypto firms like Coinbase and Ripple Labs among its supporters. During the 2024 US elections, Fairshake reportedly spent around $130 million to back candidates who favor cryptocurrency.
Ambitious Bitcoin Goals
A primary goal of the proposed PAC is to elevate the price of Bitcoin (BTC) to an astonishing $10 million, with a focus on securing its future stability. Bailey has encouraged community input on additional priorities for the PAC. Bitcoin podcaster Stephan Livera suggested that the committee advocate for the elimination of capital gains taxes on Bitcoin transactions and ensure the right to self-custody of assets. Alex Gladstein, chief strategy officer at the Human Rights Foundation, offered a variety of proposals, including legal protections for open-source developers, promoting Bitcoin education in high schools, and allowing nations indebted to the US to settle their debts using Bitcoin.
Call for Financial Reform
Tuur Demeester, a Bitcoin investor and research analyst associated with the Texas Bitcoin Foundation, emphasized that a return to full reserve banking—where banks must retain 100% of customer deposits—would be crucial for fostering peace and prosperity in relation to Bitcoin. Other suggestions from the community included promoting Bitcoin in a non-partisan manner, increasing funding for Bitcoin ATMs, and securing federal support for Bitcoin education initiatives.
Cautionary Advice for Bailey
Bailey is the founder of Nakamoto Holdings, which successfully raised $300 million earlier this year, as well as other ventures like hedge fund 210k Capital, noted for its significant investments in publicly traded companies holding Bitcoin. However, Charles Allen, CEO of BTCS, cautioned Bailey to proceed with caution due to his connections. He warned that intertwining political ambitions with public company finances could expose Bailey to potential legal challenges over fiduciary responsibilities to shareholders.
Bailey acknowledged the feedback, asserting that it was not a concern for Coinbase, which supports Fairshake. Allen remarked that the appropriateness of using corporate funds for political advocacy is contingent upon the current pro-crypto environment and the scale of the investment. “Just my two cents, I’d tread carefully,” he advised.
Cointelegraph has reached out to Bailey for additional comments. Typically, establishing a PAC requires appointing a treasurer to manage funds, registering with the US Federal Election Commission, and submitting financial reports to the agency.
Crypto Companies Engaging in Politics
In the lead-up to the 2024 US elections, crypto firms invested over $134 million, resulting in a wave of elected officials who support pro-crypto policies. A recent example includes James Walkinshaw, a Democratic candidate who won a primary race after a crypto-oriented PAC contributed more than $1 million to his campaign. Meanwhile, Fairshake has reported holding $141 million in assets reserved for future electoral endeavors.
