NASHVILLE, July 25 (Reuters) - Republican nominee and

former U.S. President Donald Trump once blasted cryptocurrency,

calling it a "scam." Now, he is headlining one of the industry's

biggest conferences.

Trump, who made the comment in 2021, will speak on Saturday,

the last day of the three-day Bitcoin 2024 convention in

Nashville. Independent U.S. presidential candidate Robert F.

Kennedy Jr., Republican former candidate Vivek Ramaswamy,

Senator Bill Hagerty of Tennessee and Senator Cynthia Lummis of

Wyoming will also speak.

Among Democrats, U.S. Representative Ro Khanna of California

is on the roster.

The industry has quickly rebounded after FTX and a

series of other crypto companies collapsed in 2022, sending

token prices sliding and forcing multiple companies into

bankruptcy. Digital asset proponents say that cryptocurrency

users are becoming a growing political force this election

cycle, although it is unclear just how many users would

prioritize crypto over other issues at the ballot box.

The Republican Party is courting their votes by promising

lighter regulation, potentially tying a currency built to

circumvent government to a major U.S. political party.

"For most of its history, crypto was really a

nonpartisan issue," said David Yermack, a professor at New York

University's Stern School of Business, because Republicans and

Democrats alike did not understand it or care to learn more.

"I do think the Republicans in the last year or two have

begun to move a little more quickly in the area."

Stand With Crypto, a nonprofit industry group backed by

crypto exchange Coinbase, has organized over 1.3

million advocates. Meanwhile, three major pro-crypto super

political action committees - Fairshake, Defend American Jobs,

and Protect Progress, all of which did not exist until this

cycle - have raised over $230 million to support friendly

candidates.

That influence is already being felt. Fairshake, a super PAC

promoting pro-crypto candidates, has spent over $10 million this

year against California progressive Democrat Katie Porter, who

was running for the Senate. Porter, who questioned bitcoin

mining's effect on climate change, lost her primary.

Some crypto advocates are backing Trump, including the

billionaire Winklevoss twins who founded crypto company Gemini.

Each gave him $1 million in bitcoin but had to take back the

money because it exceeded the maximum allowed under federal law.

Overall, 7% of U.S. adults held or used crypto in 2023, down

3 percentage points from 2022 and down 5 percentage points from

2021, the Federal Reserve reported in May.

"It's pretty clear what the industry wants is to buy as many

politicians as possible to hijack the agenda of the American

people and put their special interests on the top," said Dennis

Kelleher, CEO of Washington advocacy group Better Markets.

"Their special interest is, of course, having little or

no regulation," he added.

The annual convention, however, is pulling in more

politicians than ever.

"There's a joke going around that the list of speakers looks

like the RNC Lite," one attendee said in an interview, referring

to the Republican National Convention in Milwaukee in mid-July.

TRUMP'S NEW EMBRACE

Trump's appearance at Bitcoin 2024 is his latest show of

support for the industry. In a June fundraiser in San Francisco,

he slammed Democrats' attempts to regulate the sector. He met

bitcoin mining companies at his Mar-a-Lago resort last month.

"We have tried to engage with the Biden administration and

they have not been receptive unfortunately," said Jayson

Browder, head of public policy for Marathon Digital Holdings,

who attended the Mar-a-Lago meeting. "And former President Trump

has been more than receptive and is now being an active

supporter of our industry."

Trump recently indicated he would like to see more bitcoin

mining by U.S. firms.

Crypto executives are upset with the Securities and

Exchange Commission's enforcement actions under U.S. President

Joe Biden.

The agency has alleged that several crypto companies,

including Coinbase and Binance, facilitate the trading of

digital assets on their platform that should have been

registered as securities, which the firms deny.

The White House told Reuters the Biden-Harris

administration will continue meeting with stakeholders and

working with Congress to develop necessary safeguards to harness

the potential benefits and opportunities of crypto-asset

innovation.

Vice President Kamala Harris would likely advance Biden's

crypto policies if she wins the presidential election in

November.

Neither the Trump nor Harris campaigns immediately commented

for this article.

Traders betting on a second Trump presidency are flocking to

asset classes likely to get a boost under his administration.

Crypto and bitcoin in particular are "the cleanest and most

direct way to play the 'Trump trade' so far," said Cameron

Dawson, chief investment officer of NewEdge Wealth.

Conference attendee Hillary Adler, who co-founded operating

system BitcoinOS, has previously voted Democratic but now

describes herself as left libertarian. Calling herself an

undecided voter, Adler said she is not surprised that some

Republican politicians have pivoted to supporting crypto.

"The Republicans have always had better long-tail

strategies, politically," she said. "Now, they care about

crypto."