This electoral cycle saw a strong increase in the political spending of cryptocurrency companies, positioning the industry to influence American politics. Several states have begun to explore the creation of Bitcoins strategic reserves. As Bitcoin is institutionalized, its adoption by state bonds is considered a victory for the cryptographic sector.
However, this trend raises concerns about the future rights of Bitcoins headlines, since greater government supervision and institutional participation could transform Cypherpunk’s dream of a decentralized currency of the same to equal to the same in just another financial asset.
In the 2024 electoral cycle, cryptocurrency corporations have spent more than $ 119 million to influence federal elections, with almost half of all corporate political donations this year from the cryptographic sector. These funds have been mainly channeled to a non-partisan Super Pac, Fireshake, which supports the pro-Crypto candidates and opposes cryptographic skeptics. Cryptographic companies are now the largest corporate political speakers, even surpassing Koch Industries, which has contributed significantly, but is far behind compared. Since the Citizens United ruling of 2010, cryptographic corporations have spent $ 129 million, making them the second largest corporate speaker of elections after fossil fuel companies. This unprecedented expenditure level reflects the impulse of the industry to shape the regulations in its favor.
With the finished choice, there is an anticipated impulse for states to adopt more friendly policies with cryptographic, which include allowing public pension funds and treasure bonds to invest in Bitcoin. Some state pension funds such as Wisconsin and Michigan have already added Bitcoin ETF to their portfolios. In November, the representative Mike Cabell presented the Bitcoin Strategic Reserve Law of Pennsylvania, proposing that the state treasurer assigns up to 10% of the General Fund of Pennsylvania, Rainy Day Fund and State Investment Fund in Bitcoin. After this in December, the Texas representative, Giovanni Capriglione, proposed a bill for a strategic Bitcoins reserve that is held for at least five years in a cold wallet and the representative of Ohio Derek Merrin has a bill for The creation of a Bitcoin fund in the state treasure and gives the state treasurer a discretionary power to buy Bitcoin.
Meanwhile, some US states have taken the front in the regulation of cryptocurrencies and blockchain. Arizona has considered the legislation to define Bitcoin as legal tender and allow state agencies to accept cryptocurrency payments. Oklahoma has promulgated laws that affirm the rights to autocustody cryptocurrencies and participate in digital asset mining. The Chamber of Pennsylvania approved a bill that ensures rights to digital assets of Autocustody and performs cryptocurrency transactions and Louisiana now has provisions for the operation of nodes and the mining of digital assets in the home. Recently, eighteen US states. UU. They also filed a lawsuit against the Bag and Securities Commission (SEC), seeking to stop their execution actions on the regulation of cryptocurrencies. The states argue that the SEC is exceeding its authority by trying to regulate digital assets without the explicit approval of Congress. They argue that such regulatory power should reside with individual states. It is unknown if the courts will be favorable to this legal argument.
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Meanwhile, at the federal level, regulatory clarity still lacks sadly, and the Bitcoin classification as a merchandise instead of a legal tender adds more complexity to the regulatory framework. This year, the CFTC and the SEC have intensified their application actions against cryptocurrency companies that continue an aggressive regulatory approach. Recent legal actions against Tornado Cash and Samourai Wallet show federal government concerns with digital assets, such as transactions equal to equal to and “non -positive” wallets that avoid traditional financial supervision, creating a challenge for AML / CFT (anti -The money larger / counteract the financing of terrorism) the application, especially when combined with tools to improve anonymity such as mixers. Money transmitter licenses.
The investment at the state level marks a significant change in the origins of Bitcoin when it emerged as an alternative to the traditional financial system. Governments and regulators expressed concerns focused on money laundering, tax evasion and criminal use. Bitcoiners have encouraged the emergence of state and corporate strategic reserves of Bitcoin, but the adoption of the treasure does not necessarily lead to greater rights for Bitcoin holders. The fact that governments have Bitcoin, does not mean that they will suddenly agree with all others who support or decide to renounce the power of the Fiat printer. If political priorities follow the financing, the main objective of this year’s cryptographic sector seems to be influencing state pension funds and establish Bitcoin strategic reserves, instead of obtaining legal rights to self -conference or greater privacy.
The thrust of the strategic reserve marks a clear change of the anti-station origins of Bitcoin as a currency between pairs without intermediaries, pushing it to become only a treasure asset. Coins do not need third parties, you change the currency for the goods and services you want directly. Assets, on the other hand, generally require third parties. To obtain the good or service, you must sell the asset for the currency, borrow against the asset or provide the active for performance. There are necessary tax professionals to inform the profits and losses, the accountants to trace the asset and their derivatives, the lawyers to prepare the contracts, the police and the regulators to enforce the contracts, the banks to issue, maintain and control the currency, And as always politicians write the laws and regulations deciding the winners and losers.
Bitcoin as a treasure asset does not represent a threat to the establishment. It only reinforces the existing system and reward to Bitcoin holders with increasing prices. As a treasure asset, Bitcoin is no different from gold, pork or values backed by mortgages; Only another merchandise to be endlessly packaged, derived and negotiated. On the other hand, Bitcoin as Freedom Money that can be maintained in private and transactions without permission defies the status quo and can be a powerful tool for financial equality. Empuera the individual about the group, levels the field of play for those excluded from the current financial system, protects people from inflation and actually allows market forces to determine winners and losers. The digital gold stored in safe vaults with financial supervision would address the federal government concerns about Bitcoin, which would legitimize it and encourage institutional adoption, but the increase in prices could blind people to what they would lose in the process if Bitcoin continues Following this path …
This is an guest publication by Will Jager. The opinions expressed are completely yours and do not necessarily reflect those of BTC INC or Bitcoin magazine.
