US Politicians are not Anti-Crypto
Happy Monday!
Good news. The U.S appears to be cutting a sharply contrasting strategy to China when it comes to crypto regulation.
Earlier this week, chairman Gensler of the Securities Exchange Commission (SEC) clearly stated his organization has no plans to ban Bitcoin or other cryptoassets. This follows a revelation just a week before where Federal Reserve Chairman Jerome Powell confirmed the Fed has “no intention” of banning crypto either. Mr. Powell admitted he had “misspoken” we he earlier suggested that Central Bank Digital Currencies (which, remember, the US is working on), would replace public cryptos.
Ultimately, any decision to ban crypto would need to come from the US Congress, and I’ve been encouraged to see an increasing number of pro-crypto politicians emerging. This is not surprising – politicians (like anyone else) respond to incentives. And the incentives to be pro-crypto in Congress are only growing. Here are a few of them:
Crypto provides a sizable tax revenue stream
Crypto improves the lives of these politicians’ constituents (remember, a recent survey found that 97% of crypto users are very pleased)
Crypto has created a large amount of newly wealthy investors that are making their voices heard in Washington. Money talks.
The regulatory battle in Washington is far from over… there are still many questions the SEC and others will need to answer and provide clarity on for the industry. But I’ve been encouraged that there seem to be enough cool heads in the room to avoid the worst – strangling one of the most promising new industries to emerge in decades.
One perspective senator even floated the idea of purchasing Bitcoin for a national strategic reserve! He gets my vote.
Meanwhile, over 4,000 miles South of Washington, DC, the South American nation of Brazil is expected to vote soon on a regulatory bill which will allow Bitcoin to be used within the country to legally buy anything from a house to a McDonald’s happy meal. The country looks set to follow El Salvador’s example and become the second country to regulate Bitcoin as legal tender. Brazil is 400 times larger than El Salvador (in square miles) and about 33 times more populace.
The network effect works on the geopolitical scale just as it works on the individual scale. The more countries begin to adopt Bitcoin, the more pressing (and potentially beneficial) the issue becomes for other countries. South American is taking the lead. Who will be next?
Crypto News:
A16z Recommends US Regulate Crypto With Decentralization in Mind (LEARN MORE)
Senator Cynthia Lummis discloses a bitcoin purchase worth up to $100,000 (LEARN MORE)
McDonald's China to give away 188 NFTs on 31st anniversary (LEARN MORE)
SEC Approves Volt Equity’s Crypto Stock ETF (LEARN MORE)
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Have a great week!
Shahar
This newsletter is meant for informational purposes only. It is not meant to serve as financial advice. If you are interested in financial advice, please schedule a personal consultation with me, and be sure to read the accompanying disclaimer.
