Just two years after several scandals rocked the industry's standing in Washington, D.C., the crypto world is celebrating a successful operation to oust critics and usher in new allies up and down the ballot. There is.
Although the crypto industry walked a fine line when making pitches to both former President Trump and Vice President Harris, Trump's victory is a major victory for the crypto community, which has a growing presence in Washington.
President Trump's adoption of cryptocurrencies in his election campaign marked a change for the former president, who previously dismissed digital currencies as a “scam.”
Since then, he has vowed to make the United States the “crypto capital of the planet” and end what he calls “an illegal and un-American cryptocurrency crackdown.”
“I think the most important thing in any economy when it comes to cryptocurrencies is the attitude from the top. And now we have a new president with a very ambitious and optimistic position on cryptocurrencies.” Fariya Shirzad, Coinbase's chief policy officer, told The Hill. .
“He wants to build and develop cryptocurrencies in the United States, and he wants the United States to be the leader in cryptocurrencies. I think that's really encouraging.”
Coinbase has been at the forefront of industry political engagement this election cycle, with the company plowing $70.5 million into the FairShake super PAC and also receiving $1 million from CEO Brian Armstrong. That's what it means. Federal Election Commission data.
The cryptocurrency exchange platform also helped launch Stand with Crypto, a 501(c)4 group that held rallies and concerts across the country in the lead-up to the election.
Trump campaign senior adviser Brian Hughes told The Hill last week that crypto innovators and people in the community are “under attack from Kamala Harris and the Democratic Party.”
The Trump campaign has repeatedly criticized the Biden-Harris administration's critical approach to cryptocurrencies, particularly the leadership of Securities and Exchange Commission Chairman Gary Gensler. Who did Trump promise to fire? If re-elected.
“On the regulatory front, Trump's victory is huge,” said Owen Tedford, senior research analyst at Beacon Policy Advisors. “There's no more Gensler at the SEC. It's just a complete tone shift for the industry.”
Mr. Shirzad suggested Mr. Trump understood. American sentiment About the current financial system in this country.
“Trump as a candidate understood what the research had shown for years. [is] Ninety percent of Americans across all demographics are dissatisfied with the current financial system and don't feel it's working well for them. “And the majority of Americans believe that cryptocurrencies are a viable alternative.”
In another apparent appeal to the crypto industry, Trump and his sons launched a new crypto platform called World Liberty Financial in September.
Cryptocurrency's rise to political power is a marked change from two years ago, when the collapse of FTX and the indictment of its founder threatened to derail the industry's grip on Washington.
That power was on full display in Ohio, where a pro-cryptocurrency super PAC spent tens of millions of dollars supporting Republican businessman Bernie Moreno, who was backed by Sen. Sherrod Brown (D-N.C.). (Ohio State), another big win for the industry.
Three major virtual currency promotion super PACs focus on Approximately $133.2 million It has affected media production and coverage in the nation's most competitive races, according to OpenSecret, a nonprofit group that tracks political spending. Super PACs (FairShake, Defender American Jobs, Protect Progress) are not legally allowed to coordinate campaigns and spending.
Almost a third of that total — $40.1 million – In a bid to support Mr. Moreno in the race against Senate Banking Committee Chairman Brown, known asstrongly oppose cryptocurrenciesWritten by Stand with Crypto.
Moreno, who built a successful network of auto dealers in Ohio and positioned himself as a political “outsider” in the race, beat Brown by nearly four points on Tuesday night, according to projections from Decision Desk Headquarters. Ta.
He has received support from President Trump and has touted his pro-crypto approach, pledging to “protect” digital currencies from regulators and SEC policies critical of cryptocurrencies.
This stance was in sharp contrast to Brown. came under fire He was praised by the industry for his push to crack down on illegal cryptocurrencies and his opposition to legislation that would clarify how federal agencies regulate cryptocurrencies.
Moreno “understands that cryptocurrencies are an important part of America's future,” said Coinbase CEO and co-founder Brian Armstrong. I wrote to X Shortly after the Ohio race was called. “Bernie and the crypto owners who helped him win this victory understand how everyone can profit from crypto and are willing to fight for it. Welcome to the Congress.”
While Moreno's victory is notable, Brown's ouster is far more significant, Tedford said, calling the bank chairman an “obstacle” to achieving pro-crypto policies.
“I don't know if Mr. Moreno is someone I necessarily see as the next Lummis,” he said, referring to Republican Sen. Cynthia Lummis of Wyoming, who is pushing for strategic preparation for Bitcoin. said. “But he was a yes vote and is always willing to replace it with Brown.”
Moreno's victory would also help Republicans flip the Senate and prevent another anti-crypto Democrat from replacing Brown, said crypto venture capital firm Transform. Ventures founder Michael Terpin pointed out.
“It was probably a continuation of Joe Biden. [Sen.] elizabeth warren [D-Mass.]” he said. “Today is a new day.”
Warren, who was re-elected on Tuesday, has repeatedly pressed regulators to take a tougher stance on crypto trading.
Cryptocurrency also contributed to the primary defeats of industry critics, including Rep. Cori Bush (D-Missouri) and Rep. Jamal Bowman (D-New York). Both progressive senators voted against the crypto industry-backed bill, the Financial Innovation and Technology for the 21st Century Act.
The House of Representatives passed FIT21 last May, making it the first comprehensive cryptocurrency bill passed by the House. The bill includes a measure that would transfer oversight of the industry to the Commodity Futures Trading Commission (CTFC), which is much smaller and less well-funded than the SEC.
Mr. Bush and Mr. Bowman both voted against the bill, but several senators who voted for the bill were backed by three pro-crypto PACs.
Several of these candidates, including Rep. Yadira Carabeo (D-Colo.), Rep. Lori Chavez Delemer (R-Ore.), and Rep. Juan Siscomani (R-Ariz.), are members of Cook Political. – He was running in an election that was rated as a “toss-up” by the report. ), Don Davis (North Carolina), Mike Garcia (R-Calif.), Zach Nunn (R-Iowa), Mary Peltola (D-Alaska), Michelle Steele (R-Calif.), David Valadao (R-Calif.).
Decision Desk Headquarters said Wednesday that the probability of Republicans taking control of the House is more than 94 percent, as there is a trickle of powerful races and a likely Republican trifecta will be decided this election cycle. I predicted it.
It remains to be seen how effectively Congress is addressing crypto policy, but Tedford suggested that predictions will become clearer once the House majority is determined.
This will affect who can take over the gavel after crypto supporter House Financial Services Committee Chairman Patrick McHenry, R.N.C., steps down in January, Ted said. Mr. Ford said.
“What kind of emphasis are they putting on cryptocurrencies? Because if there's a Republican trifecta, it's going to be a pretty packed agenda next year,” he said. “So where do cryptocurrencies ultimately fit in?”
