As a seasoned analyst with over two decades of experience in the financial industry, I find myself closely following the developments in the crypto space and its interaction with politics. The recent move by Senate Majority Leader Chuck Schumer to prioritize AI regulation over crypto seems like a missed opportunity for both parties involved.
In his recent call for bipartisan legislation ahead of elections, U.S. Senate Majority Leader Chuck Schumer omitted cryptocurrency from the discussion. In a letter to fellow Senators, Schumer requested assistance in expediting joint bills on artificial intelligence and other pressing matters. Despite previously promising that the Senate would pass a bipartisan crypto regulation before year-end, Schumer chose not to include it in the last-minute, bipartisan regulations due to the US fiscal year ending on September 30 and limited legislative days remaining.
Crypto Community Reacts
The crypto community seemed disappointed with the perceived pivot from crypto to AI.
It’s no secret that Senator Schumer has no intention of pushing for any cryptocurrency legislation this year, or perhaps ever. As James Murphy, a policy observer and attorney at Ludlow Street Advisors, puts it, ‘Actions speak louder than words.’
As an analyst at 6th Man Ventures, I’ve expressed my perspective that the Republican party seems more supportive of cryptocurrency growth within the U.S., compared to the Democratic party. Mike Dudas, a fellow colleague, shares this viewpoint.
In summary, influential figures such as Mike Cuban and Antony Scaramucci have advocated for the Crypto4Harris initiative, asserting that Kamala Harris’s victory would be advantageous for the crypto sector. This notion was reinforced by a ‘crypto reset’ initiative from Harris’s campaign team, aimed at rebuilding relationships with the industry.
Despite Democratic attempts, it’s been observed that the Biden-Harris administration has stepped up its regulatory measures against cryptocurrencies over recent weeks. Contrarily, many in the crypto community believe that a potential victory by Donald Trump could have been advantageous for the sector, considering his public endorsement and proposed plans for the space.
Contrarily, Kamala Harris hasn’t disclosed any public statements regarding cryptocurrency. Interestingly, her recent policy discussions and strategies primarily revolve around artificial intelligence, with no references to cryptocurrencies or blockchain technology as yet.
Industry Supports Pro-Crypto Candidates
As an analyst, I can share that this recent development has added to the unease within the community. However, it’s worth noting that in response, there might be a surge of support towards Republicans and those perceived as crypto-friendly. Interestingly, one of the largest political action committees focusing on cryptocurrency, Fairshake, has successfully amassed millions to back pro-crypto candidates in their elections.
One contender for the Senate seat in Massachusetts is John Deaton, who emerged victorious from the Republican primaries. His win appears to have provoked Elizabeth Warren, as suggested by her recent comments, since she has criticized the substantial cryptocurrency financing aimed at defeating her.
For a while now, the industry has been hoping for clear guidance from regulators regarding specific areas. So far, the only legislation that seems to be moving forward is the Financial Innovation and Technology for the 21st Century Act (FIT21), which has garnered widespread bipartisan support in the House of Representatives. Yet, it’s uncertain whether this bill will make its way through the Senate before the year 2024 ends.
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2024-09-09 16:54