The topic of regulating and overseeing cryptocurrency has
gained momentum in American politics for multiple reasons. There is a rising
apprehension about the use of cryptocurrency for unlawful activities, such as
money laundering, terrorism financing, and tax evasion. Consequently, there is
a demand for stricter regulations and supervision to prevent such activities.
There is also an increasing curiosity about the potential
advantages of cryptocurrency, such as enhanced financial inclusion and better
cross-border payments. This has given rise to pro-crypto politicians who
endorse the growth and acceptance of cryptocurrency in the United States.
Increase in Crypto Lobbying
Firstly, in recent years, there has been a notable surge in
the use of cryptocurrencies and blockchain technology worldwide, leading to a
need for supportive regulatory frameworks. This trend is evident in the United
States, where the amount of money spent on lobbying related to cryptocurrencies
has skyrocketed for the past six years.
According to a report by Money
Mongers, there has been an increase of 922% in crypto lobbying expenditure in
the US since 2016. This significant spending indicates that organizations
involved in the cryptocurrency industry are investing heavily in efforts to
influence policymakers and shape public policy. The top spenders in 2022 were
Coinbase, Blockchain Association, and Robinhood, which are all prominent
players in the cryptocurrency space.
The fact that these companies are allocating large sums of
money for lobbying efforts suggests that they understand the importance of
regulatory clarity and consistency for the long-term success of the industry.
By influencing lawmakers and policymakers, they can help shape laws and
regulations that support their business models and promote growth and
innovation in the cryptocurrency industry.
It is important to note that regulation in the
cryptocurrency space remains highly fragmented and decentralized, with
different states adopting varying approaches. One state, Wyoming, has taken a
unique approach to cryptocurrency regulation by exempting the buying, selling,
issuing, or taking custody of payment instruments in the form of virtual
currency or receiving virtual currency for transmission from licensing as money
transmission under state law.
This move could attract more cryptocurrency
businesses and investors to the state. However, at the federal level, there is
still no consistent legal approach to regulating cryptocurrencies and
developing federal cryptocurrency legislation remains a work in progress.
The
Financial Crimes Enforcement Network (FinCEN) does not consider
cryptocurrencies as legal tender, and the regulation of cryptocurrency
exchanges varies from state to state. These inconsistencies could pose challenges
for businesses and investors in the cryptocurrency space as they navigate the
complex and evolving regulatory landscape.
⚡ #Tether, #Circle and other stablecoin have spent ~$1.3M lobbying Congress since 2022🤯
The money went on supporting #egislation, educating policymakers and issues related to drafting #Stablecoin legislation🚀#Crypto industry lobbying expenses surged 120% in the US in 2022📈
— Satoshi Club (@esatoshiclub) May 19, 2023
The Pandemic Has Accelerated the Adoption of Cryptocurrencies
Secondly, in my personal observations, the COVID-19 pandemic
has significantly impacted various aspects of our daily lives, including the
way we handle transactions and make payments. With the highly contagious nature
of the virus, there has been a surge in the adoption of contactless
transactions, leading to the growth of digital payment methods. Hence,
cryptocurrencies have gained popularity as a means of payment.
Cryptocurrencies
like Bitcoin, Ethereum, and Litecoin have become a safe and secure way to make
payments without the need for physical contact. The decentralized nature of
cryptocurrencies and the use of blockchain technology to record transactions
make them an attractive option for people who prioritize secure and transparent
payment methods.
Additionally, the pandemic has caused increased economic
uncertainty, with many people losing jobs or experiencing reduced income. In
this situation, cryptocurrencies have become a way to protect wealth and
preserve value. Cryptocurrencies are not tied to traditional financial systems
and are, therefore, seen as a way to protect against inflation and other economic
risks.
The pandemic has accelerated the adoption of digital
technologies, including cryptocurrencies, as people seek out safe, secure, and
contactless payment methods. As the world continues to navigate the challenges
posed by the pandemic, it is likely that the use of cryptocurrencies will
continue to grow, further establishing them as a mainstream means of payment.
Interest in Blockchain Technology
Thirdly, Politicians worldwide have shown interest in blockchain
technology due to its potential to transform various industries. Its
decentralized and transparent nature provides several advantages, such as
enhanced security, efficiency, and accountability. Many politicians have
acknowledged the potential of blockchain technology to drive innovation, create
job opportunities, and improve transparency.
In addition to this, cryptocurrencies have attracted
significant attention from politicians due to their disruptive potential in the
financial industry. Banks and financial institutions have dominated the
traditional financial system for centuries, and cryptocurrencies offer an
opportunity to challenge this status quo. Pro-crypto politicians see this as a
chance to provide an alternative to traditional finance and empower
individuals.
Several countries have introduced regulations to support the
growth of the cryptocurrency industry, including Japan, which became the first
country to regulate cryptocurrencies as legal tender, and Malta, which has
established itself as a hub for blockchain and cryptocurrency businesses. In
the United States, politicians and regulatory bodies are engaging in
discussions about regulating cryptocurrencies effectively while promoting
innovation and protecting consumers.
While there is no doubt about the potential of blockchain
technology and cryptocurrencies to transform various industries, there are also
concerns about the risks associated with their use. These risks include the
potential for fraud and money laundering, as well as the lack of oversight and
regulation in some areas of the cryptocurrency industry.
Despite these concerns, the increasing recognition of the
potential of blockchain technology and cryptocurrencies among politicians is a
positive development for the industry. As more politicians and regulatory
bodies engage in discussions about how to regulate and promote innovation in
the cryptocurrency space, the industry is likely to continue growing and
maturing, offering new opportunities for businesses and individuals.
$FRZSSCOIN utilizes sustainable and scalable blockchain technology, ensuring long-term viability @frztoken 🌐#FRZSSCOIN#Crypto#CryptoNews#cryptocurrencypic.twitter.com/IUopD9qfm6
— Mehdi FRZSS (@MehdiyCR7) May 21, 2023
The Banking Crisis Shifted the Narrative Surrounding Cryptocurrencies
Fourthly, the recent banking crisis in the United States has
caused a major shift in the way people perceive cryptocurrencies. As experts
suggest, the collapse of Credit Suisse and deposit runs on regulated U.S.
banks have resulted in consumers exploring alternative options, including
cryptocurrencies. Bobby Lee, a well-known figure in the crypto industry, also agrees
with this notion, stating that the banking crisis has made investors view
cryptocurrencies as a safe haven from the hazards of the traditional financial
system.
A report by JPMorgan
highlights that the banking crisis is perceived as a vindication of the crypto
ecosystem. As a result, some experts believe that this crisis has created the
perfect environment for a crypto revolution, leading Bitcoin through a
significant bull run.
Furthermore, this crisis has brought to light the
potential risks associated with traditional banking systems, which has allowed
investors to explore the range of non-speculative use cases for Bitcoin. This
first wave of bank failures since the inception of Bitcoin is considered a
crucial test for cryptocurrencies.
The perceived reduction in the safety and security of
traditional investments, such as gold and stocks, has led to a renewed focus on
the ‘digital gold’ narrative. Cryptocurrencies, especially Bitcoin,
are now considered a safe haven asset in times of economic uncertainty.
This
has resulted in an upsurge in interest and adoption of cryptocurrencies as
more people look for alternative investment options. This interest could be
attributed to the increasing awareness of the potential risks associated with
traditional investments and the growing trust in the security and stability of
cryptocurrencies.
Crypto-friendly banks have a crucial role to play in
promoting the adoption of cryptocurrencies. These banks offer faster
transactions, fewer geographical restrictions, and better KYC and
authentication processes compared to traditional banks. Therefore, this could
lead to increased adoption, as it provides a better user experience for those
looking to invest in cryptocurrencies.
I would even argue that crypto needs
banks to promote adoption. If more traditional banks become open to
cryptocurrencies, this could lead to a more stable and secure financial system.
Increased adoption will result in greater stability and trust in
cryptocurrencies as a viable alternative investment option.
Who Are the Pro-crypto Politicians?
The younger generation in the United States has shown a high
level of interest in cryptocurrencies and digital assets. According to a
survey conducted by SoFi in March 2023, over 36% of workers expressed interest
in receiving cryptocurrency as part of their paycheck. With that change, I do
see that politicians are taking their own stand on cryptocurrencies.
When
I spoke to my crypto-native friends, they said to me that Republicans are
generally more supportive of cryptocurrencies, with some even promoting Bitcoin
as a form of currency. Democrats, on the other hand, have expressed concerns
about the risks associated with cryptocurrencies and have taken steps to
regulate them. I think it is worth noting that different politicians have taken
different positions on this matter, regardless of their party affiliation.
Here is a list of 10 pro-crypto politicians in the United
States, in my humble opinion:
Francis Suarez – Suarez is one of several local politicians in the US with a crypto-friendly stance. He took office as the mayor of Miami in 2017 and soon became the first American politician to take 100% of their salary in Bitcoin. He has also been hailed as one of the leading proponents of cryptocurrency adoption in the US.
J.D. Vance – Vance is a pro-crypto politician who won a Senate primary in Ohio in 2022. He has publicly disclosed that he holds Bitcoin valued at around $250,000.
Tim Ryan – Ryan is a pro-crypto politician who won a Senate primary in Ohio in 2022. He shares similar views with Portman, the incumbent he was challenging, on many crypto-related pieces of legislation in the Senate.
Andrew Yang – Yang is a former
Democratic presidential candidate who has been an advocate for
cryptocurrencies. He has previously stated that he believes cryptocurrencies and
blockchain technology have the potential to create a more transparent and
accountable government.
Cynthia Lummis – Lummis is a Senator from Wyoming who has been a vocal advocate for Bitcoin and cryptocurrency. She believes that Bitcoin can be an effective store of value, and has criticized the U.S. dollar for losing its value over time due to inflation. Lummis also supports the idea of a decentralized financial system and sees cryptocurrencies as a way to achieve this.
Bill Foster – Foster is a Congressman from Illinois who has been a vocal advocate for cryptocurrency. He serves as one of the chairs of the Congressional Blockchain Caucus along with Republican Congressman Tom Emmer from Minnesota. Foster has co-sponsored bills related to the regulation of digital assets, including the Central Bank Digital Currency Study Act of 2021.
Ro Khanna – Khanna is a Congressman from California who has been a vocal advocate for cryptocurrency. He has emphasized that blockchain is simply a technology with the potential to decentralize ownership and economic opportunity.
Patrick McHenry – McHenry is a Congressman from North Carolina and has been a vocal advocate for cryptocurrency in Congress. He has been actively involved in crafting policies that will govern the cryptocurrency industry and has pledged to regulate cryptocurrencies along with President Joe Biden and other lawmakers.
Ted Cruz – Cruz is a Senator from Texas who has been a vocal advocate for cryptocurrency. He has proposed making Texas a “crypto oasis” and has introduced legislation to require vendors on Capitol Hill to accept crypto payments. He has also pushed for the adoption of cryptocurrency within Congress using incentives such as food.
Eric Adams – As the newly elected mayor of New York City, Eric Adams has made cryptocurrency a significant part of his platform and has committed to taking his first three paychecks into office in Bitcoin.
The Future of
Cryptocurrency Regulation in America
The future of cryptocurrency regulation in the United States
is currently uncertain and evolving. Although federal regulations have not been
implemented yet, several states have created their own regulations. For
instance, as mentioned above, Wyoming has excluded specific virtual currency
activities from being licensed as money transmission under state law.
Nevertheless, the Securities and Exchange Commission (SEC) has recently
reopened a
proposed regulation from the previous year that could potentially impact
decentralized finance (DeFi) in the future.
Moreover, the Biden administration has shown interest in
regulating stablecoins and mitigating their potential risk to consumers. It is
expected that as the cryptocurrency market continues to grow, regulators in the
US and around the world will establish more regulations to protect consumers
and prevent fraud.
To stay current with the latest regulations, it is essential
for companies, investors, and stakeholders to consult qualified legal
advisors. Clear regulations will instill confidence in companies and create a
secure environment for investors. The demand for regulations from the
cryptocurrency industry is an indication of its seriousness and intent to
expand globally.
The United States’ influence on the cryptocurrency industry
has led to many watching them closely, akin to an ‘American Big
Brother’ for the sector. Despite the uncertainty, I believe it is
important to remain positive and keep track of the latest developments to adapt
and thrive in this evolving industry.
The topic of regulating and overseeing cryptocurrency has
gained momentum in American politics for multiple reasons. There is a rising
apprehension about the use of cryptocurrency for unlawful activities, such as
money laundering, terrorism financing, and tax evasion. Consequently, there is
a demand for stricter regulations and supervision to prevent such activities.
There is also an increasing curiosity about the potential
advantages of cryptocurrency, such as enhanced financial inclusion and better
cross-border payments. This has given rise to pro-crypto politicians who
endorse the growth and acceptance of cryptocurrency in the United States.
Increase in Crypto Lobbying
Firstly, in recent years, there has been a notable surge in
the use of cryptocurrencies and blockchain technology worldwide, leading to a
need for supportive regulatory frameworks. This trend is evident in the United
States, where the amount of money spent on lobbying related to cryptocurrencies
has skyrocketed for the past six years.
According to a report by Money
Mongers, there has been an increase of 922% in crypto lobbying expenditure in
the US since 2016. This significant spending indicates that organizations
involved in the cryptocurrency industry are investing heavily in efforts to
influence policymakers and shape public policy. The top spenders in 2022 were
Coinbase, Blockchain Association, and Robinhood, which are all prominent
players in the cryptocurrency space.
The fact that these companies are allocating large sums of
money for lobbying efforts suggests that they understand the importance of
regulatory clarity and consistency for the long-term success of the industry.
By influencing lawmakers and policymakers, they can help shape laws and
regulations that support their business models and promote growth and
innovation in the cryptocurrency industry.
It is important to note that regulation in the
cryptocurrency space remains highly fragmented and decentralized, with
different states adopting varying approaches. One state, Wyoming, has taken a
unique approach to cryptocurrency regulation by exempting the buying, selling,
issuing, or taking custody of payment instruments in the form of virtual
currency or receiving virtual currency for transmission from licensing as money
transmission under state law.
This move could attract more cryptocurrency
businesses and investors to the state. However, at the federal level, there is
still no consistent legal approach to regulating cryptocurrencies and
developing federal cryptocurrency legislation remains a work in progress.
The
Financial Crimes Enforcement Network (FinCEN) does not consider
cryptocurrencies as legal tender, and the regulation of cryptocurrency
exchanges varies from state to state. These inconsistencies could pose challenges
for businesses and investors in the cryptocurrency space as they navigate the
complex and evolving regulatory landscape.
⚡ #Tether, #Circle and other stablecoin have spent ~$1.3M lobbying Congress since 2022🤯
The money went on supporting #egislation, educating policymakers and issues related to drafting #Stablecoin legislation🚀#Crypto industry lobbying expenses surged 120% in the US in 2022📈
— Satoshi Club (@esatoshiclub) May 19, 2023
The Pandemic Has Accelerated the Adoption of Cryptocurrencies
Secondly, in my personal observations, the COVID-19 pandemic
has significantly impacted various aspects of our daily lives, including the
way we handle transactions and make payments. With the highly contagious nature
of the virus, there has been a surge in the adoption of contactless
transactions, leading to the growth of digital payment methods. Hence,
cryptocurrencies have gained popularity as a means of payment.
Cryptocurrencies
like Bitcoin, Ethereum, and Litecoin have become a safe and secure way to make
payments without the need for physical contact. The decentralized nature of
cryptocurrencies and the use of blockchain technology to record transactions
make them an attractive option for people who prioritize secure and transparent
payment methods.
Additionally, the pandemic has caused increased economic
uncertainty, with many people losing jobs or experiencing reduced income. In
this situation, cryptocurrencies have become a way to protect wealth and
preserve value. Cryptocurrencies are not tied to traditional financial systems
and are, therefore, seen as a way to protect against inflation and other economic
risks.
The pandemic has accelerated the adoption of digital
technologies, including cryptocurrencies, as people seek out safe, secure, and
contactless payment methods. As the world continues to navigate the challenges
posed by the pandemic, it is likely that the use of cryptocurrencies will
continue to grow, further establishing them as a mainstream means of payment.
Interest in Blockchain Technology
Thirdly, Politicians worldwide have shown interest in blockchain
technology due to its potential to transform various industries. Its
decentralized and transparent nature provides several advantages, such as
enhanced security, efficiency, and accountability. Many politicians have
acknowledged the potential of blockchain technology to drive innovation, create
job opportunities, and improve transparency.
In addition to this, cryptocurrencies have attracted
significant attention from politicians due to their disruptive potential in the
financial industry. Banks and financial institutions have dominated the
traditional financial system for centuries, and cryptocurrencies offer an
opportunity to challenge this status quo. Pro-crypto politicians see this as a
chance to provide an alternative to traditional finance and empower
individuals.
Several countries have introduced regulations to support the
growth of the cryptocurrency industry, including Japan, which became the first
country to regulate cryptocurrencies as legal tender, and Malta, which has
established itself as a hub for blockchain and cryptocurrency businesses. In
the United States, politicians and regulatory bodies are engaging in
discussions about regulating cryptocurrencies effectively while promoting
innovation and protecting consumers.
While there is no doubt about the potential of blockchain
technology and cryptocurrencies to transform various industries, there are also
concerns about the risks associated with their use. These risks include the
potential for fraud and money laundering, as well as the lack of oversight and
regulation in some areas of the cryptocurrency industry.
Despite these concerns, the increasing recognition of the
potential of blockchain technology and cryptocurrencies among politicians is a
positive development for the industry. As more politicians and regulatory
bodies engage in discussions about how to regulate and promote innovation in
the cryptocurrency space, the industry is likely to continue growing and
maturing, offering new opportunities for businesses and individuals.
$FRZSSCOIN utilizes sustainable and scalable blockchain technology, ensuring long-term viability @frztoken 🌐#FRZSSCOIN#Crypto#CryptoNews#cryptocurrencypic.twitter.com/IUopD9qfm6
— Mehdi FRZSS (@MehdiyCR7) May 21, 2023
The Banking Crisis Shifted the Narrative Surrounding Cryptocurrencies
Fourthly, the recent banking crisis in the United States has
caused a major shift in the way people perceive cryptocurrencies. As experts
suggest, the collapse of Credit Suisse and deposit runs on regulated U.S.
banks have resulted in consumers exploring alternative options, including
cryptocurrencies. Bobby Lee, a well-known figure in the crypto industry, also agrees
with this notion, stating that the banking crisis has made investors view
cryptocurrencies as a safe haven from the hazards of the traditional financial
system.
A report by JPMorgan
highlights that the banking crisis is perceived as a vindication of the crypto
ecosystem. As a result, some experts believe that this crisis has created the
perfect environment for a crypto revolution, leading Bitcoin through a
significant bull run.
Furthermore, this crisis has brought to light the
potential risks associated with traditional banking systems, which has allowed
investors to explore the range of non-speculative use cases for Bitcoin. This
first wave of bank failures since the inception of Bitcoin is considered a
crucial test for cryptocurrencies.
The perceived reduction in the safety and security of
traditional investments, such as gold and stocks, has led to a renewed focus on
the ‘digital gold’ narrative. Cryptocurrencies, especially Bitcoin,
are now considered a safe haven asset in times of economic uncertainty.
This
has resulted in an upsurge in interest and adoption of cryptocurrencies as
more people look for alternative investment options. This interest could be
attributed to the increasing awareness of the potential risks associated with
traditional investments and the growing trust in the security and stability of
cryptocurrencies.
Crypto-friendly banks have a crucial role to play in
promoting the adoption of cryptocurrencies. These banks offer faster
transactions, fewer geographical restrictions, and better KYC and
authentication processes compared to traditional banks. Therefore, this could
lead to increased adoption, as it provides a better user experience for those
looking to invest in cryptocurrencies.
I would even argue that crypto needs
banks to promote adoption. If more traditional banks become open to
cryptocurrencies, this could lead to a more stable and secure financial system.
Increased adoption will result in greater stability and trust in
cryptocurrencies as a viable alternative investment option.
Who Are the Pro-crypto Politicians?
The younger generation in the United States has shown a high
level of interest in cryptocurrencies and digital assets. According to a
survey conducted by SoFi in March 2023, over 36% of workers expressed interest
in receiving cryptocurrency as part of their paycheck. With that change, I do
see that politicians are taking their own stand on cryptocurrencies.
When
I spoke to my crypto-native friends, they said to me that Republicans are
generally more supportive of cryptocurrencies, with some even promoting Bitcoin
as a form of currency. Democrats, on the other hand, have expressed concerns
about the risks associated with cryptocurrencies and have taken steps to
regulate them. I think it is worth noting that different politicians have taken
different positions on this matter, regardless of their party affiliation.
Here is a list of 10 pro-crypto politicians in the United
States, in my humble opinion:
Francis Suarez – Suarez is one of several local politicians in the US with a crypto-friendly stance. He took office as the mayor of Miami in 2017 and soon became the first American politician to take 100% of their salary in Bitcoin. He has also been hailed as one of the leading proponents of cryptocurrency adoption in the US.
J.D. Vance – Vance is a pro-crypto politician who won a Senate primary in Ohio in 2022. He has publicly disclosed that he holds Bitcoin valued at around $250,000.
Tim Ryan – Ryan is a pro-crypto politician who won a Senate primary in Ohio in 2022. He shares similar views with Portman, the incumbent he was challenging, on many crypto-related pieces of legislation in the Senate.
Andrew Yang – Yang is a former
Democratic presidential candidate who has been an advocate for
cryptocurrencies. He has previously stated that he believes cryptocurrencies and
blockchain technology have the potential to create a more transparent and
accountable government.
Cynthia Lummis – Lummis is a Senator from Wyoming who has been a vocal advocate for Bitcoin and cryptocurrency. She believes that Bitcoin can be an effective store of value, and has criticized the U.S. dollar for losing its value over time due to inflation. Lummis also supports the idea of a decentralized financial system and sees cryptocurrencies as a way to achieve this.
Bill Foster – Foster is a Congressman from Illinois who has been a vocal advocate for cryptocurrency. He serves as one of the chairs of the Congressional Blockchain Caucus along with Republican Congressman Tom Emmer from Minnesota. Foster has co-sponsored bills related to the regulation of digital assets, including the Central Bank Digital Currency Study Act of 2021.
Ro Khanna – Khanna is a Congressman from California who has been a vocal advocate for cryptocurrency. He has emphasized that blockchain is simply a technology with the potential to decentralize ownership and economic opportunity.
Patrick McHenry – McHenry is a Congressman from North Carolina and has been a vocal advocate for cryptocurrency in Congress. He has been actively involved in crafting policies that will govern the cryptocurrency industry and has pledged to regulate cryptocurrencies along with President Joe Biden and other lawmakers.
Ted Cruz – Cruz is a Senator from Texas who has been a vocal advocate for cryptocurrency. He has proposed making Texas a “crypto oasis” and has introduced legislation to require vendors on Capitol Hill to accept crypto payments. He has also pushed for the adoption of cryptocurrency within Congress using incentives such as food.
Eric Adams – As the newly elected mayor of New York City, Eric Adams has made cryptocurrency a significant part of his platform and has committed to taking his first three paychecks into office in Bitcoin.
The Future of
Cryptocurrency Regulation in America
The future of cryptocurrency regulation in the United States
is currently uncertain and evolving. Although federal regulations have not been
implemented yet, several states have created their own regulations. For
instance, as mentioned above, Wyoming has excluded specific virtual currency
activities from being licensed as money transmission under state law.
Nevertheless, the Securities and Exchange Commission (SEC) has recently
reopened a
proposed regulation from the previous year that could potentially impact
decentralized finance (DeFi) in the future.
Moreover, the Biden administration has shown interest in
regulating stablecoins and mitigating their potential risk to consumers. It is
expected that as the cryptocurrency market continues to grow, regulators in the
US and around the world will establish more regulations to protect consumers
and prevent fraud.
To stay current with the latest regulations, it is essential
for companies, investors, and stakeholders to consult qualified legal
advisors. Clear regulations will instill confidence in companies and create a
secure environment for investors. The demand for regulations from the
cryptocurrency industry is an indication of its seriousness and intent to
expand globally.
The United States’ influence on the cryptocurrency industry
has led to many watching them closely, akin to an ‘American Big
Brother’ for the sector. Despite the uncertainty, I believe it is
important to remain positive and keep track of the latest developments to adapt
and thrive in this evolving industry.
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- Source: https://www.financemagnates.com//cryptocurrency/the-crypto-mania-in-american-politics-reached-a-peak-thats-not-enough/
