Crypto Lobbying Efforts Aim to Secure Political Allies
Crypto investors are eagerly awaiting the approval of a spot Bitcoin exchange-traded fund (ETF). However, recent efforts in crypto lobbying are creating hope for the longer-lasting survival of the asset.
Crypto Companies Join Forces
Crypto exchange Coinbase, stablecoin issuer Circle, and venture capital firm a16z have contributed nearly $80 million to a crypto super political action committee called Fairshake. The goal is to combat negative attitudes toward digital assets among US policymakers ahead of the 2024 elections. Other notable supporters include crypto investors Ron Conway and Fred Wilson, as well as Gemini co-founders Cameron and Tyler Winklevoss.
A Politically Precarious Position
Political concerns surrounding crypto have intensified due to Binance’s alleged involvement in terrorist funding and the conviction of former FTX CEO Sam Bankman-Fried. Senator Elizabeth Warren has even referred to digital assets as a national security risk. With Senator Patrick McHenry, one of crypto’s biggest allies, not seeking re-election in 2024, new funding is needed to win support from political leaders.
The Impact on ETF Approval
These lobbying efforts coincide with the growing excitement around Bitcoin ETF approvals. The US Securities and Exchange Commission is set to rule on several applications starting January 10, 2024. If approved, this could pave the way for institutional investments in Bitcoin. Additionally, increased lobbying may lead to improved legal clarity for retail trading, creating a more robust trading environment.
Tokenization and On-Chain Settlements
The rise of tokenization is expected to drive demand for on-chain settlements using digital assets. The involvement of major players like JPMorgan and Morgan Stanley could push Congress to advance smaller crypto-related bills, resulting in a faster traditional financial system. Overall, these lobbying efforts have the potential to benefit both retail and institutional investors.
Hot Take: The Future of Crypto Depends on Political Support
The success of crypto in the long run hinges on securing political allies. With lobbying efforts and increased funding, there is hope for a more favorable regulatory environment and the approval of a Bitcoin ETF. These developments could unleash institutional investments in Bitcoin and provide clarity for retail traders. However, the outcome ultimately depends on political support and the decisions made by regulatory authorities.
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