A16z, Coinbase and Circle have invested nearly $80 million to lobby pro-crypto political leaders ahead of the 2024 elections. The influx of cash comes as sentiments toward cryptocurrencies appear to sour, in part due to the efforts of Senator Elizabeth Warren. Political allies could boost confidence for crypto retailers, even as big investors anticipate the approval of a Bitcoin ETF in early January.
Crypto investors are eagerly awaiting the approval of a spot Bitcoin exchange-traded fund (ETF). However, a recent wave of cryptocurrency lobbies is raising hopes for the long-term survival of this asset.
Cryptocurrency exchange Coinbase, stablecoin issuer Circle, and Silicon Valley venture capital firm a16z are donating nearly $80 million to influence U.S. crypto policy ahead of the 2024 elections. The three have funneled the money into a super crypto political action committee, Fairshake, to combat sour attitudes toward digital assets on Capitol Hill.
Bitcoin Spot ETF: Crypto Lobby Needs New Political Allies
The cryptocurrency companies are joined by crypto investors Ron Conway and Fred Wilson and Gemini co-founders Cameron and Tyler Winklevoss. Fairshake accepts unlimited donations to support the “pro-crypto leadership” election.
The notable influx of funds comes after Binance’s alleged involvement in terrorist financing and the conviction of former FTX CEO Sam Bankman-Fried have placed crypto in a politically precarious position.
Senator Elizabeth Warren said in an interview earlier this year: “Digital assets are creating a national security risk.”
One of crypto’s most notable allies, Senator Patrick McHenry, has stated his intention not to run again in the 2024 election. McHenry has been instrumental in advancing stablecoin legislation that was blocked by Democrats in the House Financial Services Committee, hence the need for new funding to gain new political support:
“I see the increased lobbying effort more as an attempt to influence this election and ensure that pro-crypto candidates, from both sides of the aisle, are elected rather than a response to recent enforcement actions and court cases,” said Orlando Cosme, an attorney at OC Advisory.
How the Bitcoin Spot ETF Will Help Crypto Lobby Efforts
New political ties are developing in parallel with market excitement around Bitcoin ETF approvals. The US Securities and Exchange Commission is expected to rule on several applications as early as January 10, 2024. If authorized, they could open the floodgates to institutional investments in Bitcoin.
Increased pressure could improve the legal status of retail trading. Clarity in licensing for crypto exchange activities, such as order matching, brokerage and clearing services, could eliminate conflicts of interest and encourage trading of the kind that European exchanges expect next year.
Laws clarifying which assets are securities could lead to disclosures that retail traders might be comfortable with. An increase in tokenization will stimulate demand for on-chain settlements using digital assets. The entry of big players like JPMorgan, Morgan Stanley and others could put pressure on Congress to move forward. Especially smaller crypto-related bills that could make the traditional financial system faster.
January 10, Key Date for the Bitcoin Spot ETF
January 10, 2024 is a key date on which the SEC’s decision regarding the Bitcoin Spot ETF could be known, since the regulator has until that day to disclose a final decision on the fund application submitted by Ark Invest.
Expert assessments suggest that the SEC is unlikely to reject all applications for the Bitcoin spot ETF that are on the table and that the possible approval of one or more of these applications is getting closer.
By Leonardo Perez
