David Bailey Plans $200M Bitcoin PAC to Advance Crypto Interests in America

Trump Bitcoin Adviser Launches Major Political Initiative

David Bailey, entrepreneur and Bitcoin adviser to US President Donald Trump, is seeking to raise $200 million for a political action committee dedicated to advancing Bitcoin's interests across America. Bailey, who founded Bitcoin Magazine and BTC Inc., served as a key adviser during Trump's presidential campaign and played a central role in the president's Bitcoin adoption strategy.

The serial entrepreneur announced his ambitious plans on social media, stating his intention to create a PAC worth between $100 million and $200 million, anchored by his Bitcoin treasury company Nakamoto Holdings.

Understanding Political Action Committees in Crypto

Political Action Committees raise funds through donations and subsequently donate money to specific political candidates, parties, and causes. The crypto industry has increasingly utilized PACs to influence policy decisions and support blockchain-friendly legislation.

Fairshake represents one of the most prominent crypto-related PACs, backed by major cryptocurrency companies including Coinbase and Ripple Labs. During the 2024 US elections, Fairshake spent approximately $130 million supporting pro-crypto candidates while opposing those with anti-cryptocurrency stances.

Bitcoin Price Target and Long-Term Strategy

Bailey's proposed PAC includes ambitious goals for Bitcoin's future development. One primary objective involves pushing Bitcoin's price to $10 million while positioning the cryptocurrency for sustainable long-term growth.

The Bitcoin advocate actively solicited input from the crypto community regarding additional priorities for the proposed PAC. Industry experts provided various suggestions focusing on regulatory improvements and educational initiatives.

Community-Driven PAC Priorities

Bitcoin podcaster Stephan Livera suggested the PAC should focus on abolishing capital gains tax on Bitcoin sales and protecting self-custody rights for cryptocurrency holders.

Alex Gladstein, Chief Strategy Officer of the Human Rights Foundation, proposed multiple initiatives including legal protections for open-source developers, Bitcoin education programs for high schools, and allowing foreign countries to repay American debts using Bitcoin.

Bitcoin investor and Texas Bitcoin Foundation adviser Tuur Demeester emphasized the importance of returning to full reserve banking, requiring banks to maintain 100% of customer deposits in reserve.

Additional community suggestions included promoting Bitcoin adoption across political parties, increasing funding for Bitcoin ATMs, and establishing federal funding for Bitcoin education programs.

Bailey's Business Ventures and Potential Conflicts

Bailey founded Nakamoto Holdings, a Bitcoin holding company that successfully raised $300 million during its May launch. His business portfolio includes hedge fund 210k Capital, which has invested heavily in publicly traded companies maintaining Bitcoin treasuries.

However, industry leaders have raised concerns about potential conflicts of interest. Charles Allen, CEO of publicly traded company BTCS, cautioned Bailey about using public company funds for political efforts, warning of possible class-action lawsuits for breach of fiduciary duty.

Bailey defended his position by referencing Coinbase's backing of Fairshake, though Allen suggested that shareholders might question corporate political spending effectiveness in the current pro-crypto environment.

PAC Formation Requirements and Regulations

Creating a PAC involves several regulatory steps including appointing a treasurer for fund management, registering with the US Federal Election Commission, and filing regular financial reports with the agency.

The formal process ensures transparency and accountability in political contributions while maintaining compliance with federal election laws.

Crypto Industry's Growing Political Influence

The cryptocurrency industry significantly expanded its political involvement during the 2024 US elections, spending over $134 million on various campaigns and initiatives. These efforts resulted in numerous elected officials with pro-cryptocurrency viewpoints taking office.

Recent examples include James Walkinshaw, a Democratic candidate who won a party primary after a crypto-backed PAC invested more than $1 million in his campaign to replace the late Representative Gerry Connolly.

Fairshake currently maintains $141 million in assets specifically designated for upcoming elections, demonstrating the crypto industry's continued commitment to political engagement.

Future Implications for Bitcoin Policy

Bailey's proposed $200 million PAC represents a significant escalation in crypto political advocacy efforts. The initiative aims to create lasting policy changes that benefit Bitcoin adoption and cryptocurrency innovation in America.

The PAC's success could influence future cryptocurrency regulations, tax policies, and educational initiatives while potentially setting precedents for other blockchain advocacy organizations.

As the crypto industry continues growing its political influence, Bailey's initiative may serve as a catalyst for broader policy reforms supporting digital asset adoption and blockchain technology development across the United States.

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