Trump Backs Crypto: Promises Deregulation as Industry Surges in Political Influence

October 30, 2024
Trump Backs Crypto: Promises Deregulation as Industry Surges in Political Influence
  • The crypto industry has invested over $130 million in political contributions to influence congressional races, shifting its messaging to advocate for clearer regulations.

  • In May 2024, the House of Representatives passed a bill that aligns with the demands of crypto lobbyists, while the Senate has rolled back previous SEC guidelines intended to protect consumers.

  • A significant debate is ongoing regarding the classification of cryptocurrencies as either securities or commodities, which would greatly affect their regulatory framework.

  • Donald Trump has emerged as a vocal supporter of cryptocurrency, promising to promote it as a key industry in the U.S. and aiming to eliminate SEC regulations that hinder its growth.

  • Both presidential candidates are showing interest in the crypto sector, which could lead to a boom in deregulation following the upcoming election.

  • The cryptocurrency market is currently experiencing a notable resurgence, nearing its all-time highs from 2021.

  • Despite ongoing controversies, the crypto market has demonstrated resilience, with a notable decline in predictions of its demise over the past year.

  • If cryptocurrencies are classified as commodities, they would be regulated by the Commodity Futures Trading Commission (CFTC), which offers a more favorable environment compared to the stricter SEC regulations.

  • The crypto industry promotes stablecoins and decentralized applications as legitimate use cases, while also engaging in speculative activities that resemble gambling.

  • Companies within the crypto space are now adopting a more conventional image, distancing themselves from controversial figures like Sam Bankman-Fried and advocating for regulations that would normalize their operations.

  • Kamala Harris has expressed a desire to foster innovation in the digital asset space, although her regulatory stance remains unclear.

  • Consumer advocates caution that exempting cryptocurrencies from securities laws could enable riskier practices and mislead investors regarding the safety of digital assets.

  • The crypto sector has become the largest political donor in the current election cycle, surpassing even the fossil-fuel industry.

Summary based on 1 source


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Source

The Worst of Crypto Is Yet to Come

The Atlantic • Oct 30, 2024

The Worst of Crypto Is Yet to Come

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