The 2024 presidential election is throwing up many firsts. While some, like the bait-and-switch candidacy, are blatantly obvious, others are a little less pronounced.
One such shift is happening in Silicon Valley. Known as a Democrat bastion over the years, there is a notable shift in the tide. Billionaire entrepreneurs, venture capitalists, and others with huge clout in the tech domain are throwing their weight behind Donald Trump. Elon Musk and David Sacks are just two prominent names on a list that is growing daily.
While the turn of events does not suggest that Silicon Valley is turning all red, the sector's disenchantment with Democrats is apparent. Being an incumbent in any election has its share of advantages but is also a time of reckoning. Harris's tenure as California's attorney general was largely favorable toward the tech industry, but her years as VP have taken away some of that sheen. The Biden-Harris administration, over its tenure, has lost powerful friends and created discontent among the tech giants.
Deeply unhappy with the current administration's backing of antitrust enforcement and hostile policies toward cryptocurrency, the most influential voices are moving away from Harris. Many in the tech world believe that the Democrats proposed tax on unrealized capital gains will sound the death knell for many startups and the venture capital industry.
Lina Khan's disastrous record and disruptive crusade against the industry's giants are now costing the Democrats. Gary Gensler, the head of the Securities and Exchange Commission, has been openly hostile to the crypto sector and even accused some of its biggest names of running illegal exchanges in the country. Together, the two high-profile Biden appointees have created a rift between Silicon Valley and Washington.
Meanwhile, former president Trump, who has often called out the social media companies for their anti-conservative bias, is gaining ground with the country's tech elites. After being banned from many platforms following the Jan 6 event, he is being welcomed back and seen as the antidote to the Democrat's regressive regulations and unjustifiable lawfare.
Though Trump has also aired his skepticism regarding crypto and raised concerns about the impact of digital currency on the U.S. dollar, his campaign has been actively engaging with emerging tech. The presidential candidate gave a keynote speech during the Bitcoin 2024 conference. Likening the crypto-verse to "the steel industry of 100 years ago," he promised to make the country the world leader in bitcoin and other digital currencies. Much to the delight of the crypto enthusiasts, he also promised to fire the controversial SEC Chair Gary Gensler if he returns to the White House. His proposal to create a national bitcoin "stockpile" as a "permanent national asset" has caught on among its supporters.
The campaign's positive outreach and Trump's vice presidential pick (with deep Silicon Valley ties, including a stint with Peter Thiel) have galvanized the techies to drum up support online and fill his campaign coffers.
Although Trump's progressive tone has prompted tech executives to openly support him, which differs from previous elections, it will be interesting to see how they reconcile with some of his ideologies that diverge from their typical stances.
It is a given that the former president's pro-business attitude will resonate immensely with the innovators and entrepreneurs of Silicon Valley. Despite the tech world's soft corner for leftist ideas, the industry is primarily looking out for its bottom line.
