In the 2024 US presidential election, cryptocurrencies will likely be very low on the priority list for most voters. There are many important issues at home including abortion, student loans, AI, immigration, social media regulation, and health care costs. Regarding foreign policy, there are several high-profile military conflicts at stake, including Russia vs. Ukraine, Israel vs. Palestine, and China vs. Taiwan.
Nevertheless, perhaps for most people, cryptocurrencies are not a deciding issue, but there is a small problem. still strangely Growing Bitcoin maximalist community Number of single issue voters.
Cryptocurrencies have also received widespread national attention, primarily due to the complete collapse of $32 billion giant FTX and the millions of US customers harmed by cryptocurrencies. is.
Crypto has also been linked to scandals involving celebrities such as Kim Kardashian, Logan Paul, Soulja Boy, Katy Perry, DJ Khaled, Austin Mahone, Floyd Mayweather, Tom Brady, Gisele Bündchen, and Larry David. It also gained mainstream coverage. All of these celebrities promoted crypto assets that are now nearly worthless.
Since the 2020 election, crypto promoter profits have increased 10x
Cryptocurrencies are getting more attention than ever this election season, but for mostly the wrong reasons. After all, the market capitalization of cryptocurrencies has increased by 1,000% since the last US presidential election. With their newfound profits, crypto billionaires are happy to throw their weight and checkbooks all over Washington, DC.
For example, someone trolled Elizabeth Warren and sent a request to her office to raise a flag at the Capitol in honor of Satoshi Nakamoto as part of the Capitol Flag Program.
Coinbase alone spent $2.16 million on lobbying in the first three quarters of 2023. Foris DAX also funded lobbying efforts by the companies and organizations it supports, including the Blockchain Association.
Blockchain Association CEO Kristen Smith said its lobbying efforts include efforts among policymakers to “close the education gap” and “build a common-sense regulatory framework.” It is said that it was
Largest cryptocurrency lobbyist FTX goes bankrupt
Several political candidates have been publicly embarrassed by revelations that they have received donations directly or indirectly from FTX founder Sam Bankman Fried or FTX-funded PACs. There is. The conviction proved that Bankman Freed stole FTX customers' money around the time it paid millions of dollars to lobbyists. Bankman Fried, for example, has made no secret of his support for crypto-friendly Democratic candidates.
The millions of dollars earned from FTX and Bankman Freed have, of course, been depleted since FTX went bankrupt. Bankman Fried previously spent $40 million trying to influence the 2022 midterm elections, with mixed results. But that doesn’t mean crypto lobbyists are gone.
Cryptocurrency lobbyists are planning to continue their work even though FTX funds are gone. They passed a bill that provides a regulatory framework for so-called stablecoins. The collapse of Terraform Labs and its multibillion-dollar algorithmic stablecoin UST has highlighted the risks surrounding stablecoins. Over the years, Protos has covered hundreds of cases where various stablecoins deviated from their intended $1 peg.
In response, giant stablecoin issuer Tether got involved in Washington DC itself. The company spent $760,000 on lobbying in the first three quarters of 2023. This is a trivial expense considering that the company's eponymous stablecoin Tether (USDT) is the world's third-largest crypto asset, with a market capitalization of more than $110 billion.
Read more: Here's how much the biggest stablecoins spent on US lobbying
Supporting CFTC, which is crypto-friendly due to lack of personnel
Cryptocurrency lobbyists also sought to shift power from the well-resourced SEC to the much smaller and more crypto-friendly CFTC. A bill that would “better define” the SEC's responsibilities regarding digital assets was considered in committee in December 2023, thanks in large part to the efforts of cryptocurrency lobbyists.
For years, pro-cryptocurrency lobbyists have questioned the SEC, characterizing the overlap in jurisdiction between the CFTC and the SEC as a tug-of-war between equally competent, staffed, and effective regulators. He has also received media attention for his SEC's rare defeat in court against crypto defendants. These two lobbying and public relations efforts of his help distract politicians from his track record of overwhelming SEC wins against crypto promoters that violate securities laws.
“It's just been a hectic war,” Coinbase Chief Policy Officer Faryar Shirzad said while discussing the bill and Coinbase's multimillion-dollar lobbying efforts.
Cryptocurrency lobbyists have also not relented in funding political action committees (PACs) that support crypto-friendly candidates. FairShake has raised $78 million to back professional digital asset candidates from companies such as Coinbase, Binance, Ripple, and Andreessen Horowitz (a16z).
Furthermore, crypto lobbyists have not limited their efforts to influencing candidates running for Congress. The Digital Chamber of Commerce, the DeFi Education Fund, and even Sen. Cynthia Lummis have sent amicus briefs to the federal court overseeing the case asking for the SEC's lawsuit against Coinbase to be dismissed.
The Blockchain Association of Texas and the Crypto Freedom Alliance recently accused the SEC of violating rules creating new regulations when it expanded the definition of “dealer” to include potentially related digital asset activities. filed a lawsuit.
Read more: Binance ordered to pay $2.7 billion to CFTC, former commissioner ordered to pay $150 million
Politicians now talk about virtual currencies
Even politicians themselves have tried to make cryptocurrencies an issue of some national policy. Sen. Elizabeth Warren has warned that US adversaries like Iram are competing with US-based Bitcoin miners. Third-term presidential candidate Robert F. Kennedy announces digital wealth plan that includes using Bitcoin to back part of the US dollar and eliminating some capital gains taxes on Bitcoin sales did.
It is unclear whether crypto lobbyists have been personally contacted. donald trump, the leading Republican candidate recently changed his attitude towards Bitcoin. Previously, he called Bitcoin a scam.
But just recently, Trump called cryptocurrencies “an additional form of currency.” Part of his change in attitude may be explained by the millions of ETH he received from selling questionable NFTs, sneakers, and event tickets.
read more: Tucker Carlson interview sends price of President Trump's ridiculous NFTs soaring
While some politicians are unlikely to change their negative stances on digital assets as the November 2024 presidential election approaches, others at least appear open to learning more about it. Lobbyists are certainly ready to answer questions about digital assets over cocktails at Hillwood, the Meridian Ball, or any other decadent extravaganza in Washington, DC.
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