Crypto Becoming a Political Powerhouse, Says CoinShares CSO
CoinShares Chief Strategy Officer Meltem Demirors believes that the crypto industry is gaining significant influence in Washington, becoming a political powerhouse. In a recent interview, Demirors stated that crypto has evolved from a small niche community to a global industry with different perspectives and goals. As a result, trade associations and packs have formed to lobby and support candidates who align with their views on regulation and policy. Demirors emphasized that crypto is becoming an important part of the US regulatory ecosystem and predicted that more campaign contributions from crypto players will go to crypto-friendly candidates. She also highlighted the need for the US to establish clear regulatory guidelines to remain competitive globally.
Main Points:
- Crypto has evolved into a global industry with diverse perspectives and goals.
- Trade associations and packs are forming to lobby for favorable regulation.
- More campaign contributions from crypto players will support crypto-friendly candidates.
- Other jurisdictions, like Hong Kong, have made progress in establishing clear regulatory frameworks.
- The US needs clear regulatory guidelines to remain competitive.
Investors Taking Profits and Reducing Risk Exposure
Demirors also discussed the current market condition, noting a lack of interest among traders. While publicly listed crypto products saw inflows of $750 million over the year, recent outflows occurred as investors took profits and reduced risk exposure. Demirors emphasized that the environment remains risk-off. These comments come amidst increased regulatory scrutiny by US agencies, such as the SEC and CFTC, towards crypto firms like Binance, Kraken, and Nexo.
Hot Take:
The evolving influence of crypto in Washington highlights the industry’s growing prominence in shaping regulatory and policy decisions. With increased lobbying efforts and campaign contributions, crypto players are seeking to align government actions with their interests. However, the US needs to establish clear regulatory guidelines to maintain its competitiveness compared to other jurisdictions. As investors take profits and reduce risk exposure, it remains to be seen how regulatory scrutiny and market conditions will impact the crypto industry in the coming months.
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