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Column: Most Americans have a negative view of crypto. So why are political campaigns rushing to embrace it?

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Column: Most Americans have a negative view of crypto. So why are political campaigns rushing to embrace it?

The last year hasn’t been a very happy period in the cryptocurrency world.

News about the asset class has been almost invariably dire, full of reports of the fallout from bankruptcies among crypto firms, criminal convictions and sentencings of former crypto kings and other legal setbacks.

Yet there is one bright spot for the sector: In this election year, politicians are lining up to embrace crypto.

Many people who hold crypto…probably don’t identify as crypto advocates at all.

— Crypto critic Molly White

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Some Democrats and Republicans have been long-term supporters of crypto. Among them is Rep. Ro Khanna (D-Fremont), who last month joined 13 of his Democratic colleagues in Congress to urge the Democratic National Committee to “take a forward-looking approach to digital assets and blockchain technology.”

Their letter to the DNC argued, implausibly, that these technologies will “have an outsized impact in ensuring victories up and down the ballot.”

Others are recent converts. Consider Eric Hovde of Wisconsin, who is running for the GOP nomination to challenge incumbent Democratic Sen. Tammy Baldwin this year. In 2021, when he was chairman and chief executive of Sunwest Bank, Hovde told an economic forum that the crypto market was “insanity…. There’s nothing backing it…. There’s nothing here.”

Hovde has since changed his tune. Last month he told Politico, “I support decentralized finance, and see Bitcoin as an asset for the future and fully support the community.” The industry lobbying organization Stand with Crypto designated him as “Very Pro-Crypto” on its website.

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The industry’s big catch was Donald Trump. Back in 2021, he labeled crypto “a scam” in an interview on Fox News. “Bitcoin, it just seems like a scam,” he said. “I don’t like it because it’s another currency competing against the dollar.”

But there he was last month in Nashville, delivering the keynote address at the Bitcoin 2024 industry conference. He promised to fire Securities and Exchange Commission Chair Gary Gensler, a decided critic of crypto, if he’s releected president. (Trump would have no authority to fire Gensler before the latter’s SEC term runs out in June 2026.)

And Trump vowed to commute the 2015 life sentence of Ross Ulbricht, the creator of the crypto site Silk Road, who was convicted on charges of running what federal prosecutors called a “sprawling black-market bazaar” for drugs and other illegal goods. And he pledged to create a national “strategic reserve” of bitcoin, an idea that makes no coherent economic sense.

Even the campaign of Kamala Harris is treading carefully. Harris’ aides have approached leading crypto firms in quest of a “reset” of relations with the sector, according to the Financial Times. Those relations have been soured by Gensler’s anti-crypto initiatives and a general lack of enthusiasm for crypto in the Biden White House.

These developments are the offspring of a vast political campaign by crypto advocates. The campaign has two main elements. One is that feature common to all special interest campaigns: Money, dispensed by the pantload to current or wannabe members of Congress as well as aspirants to other positions, such as the presidency.

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The other feature is deception. Crypto advocates have relentlessly flogged a claim that 52 million adult Americans are “crypto owners,” supposedly a single-issue voting bloc that politicians need to recognize.

The figure, which comes from a poll commissioned by the crypto firm Coinbase and would be equivalent to about 20% of the U.S. adult population, is manifestly absurd. As I’ve reported before, it’s flatly contradicted by a survey from the Federal Reserve System, which found that only 7% of adults had “bought or held” crypto in 2023. That would place ownership at about 18 million adults.

Moreover, the Fed found that ownership had declined sharply in recent years, down from 11% of adults in 2021. In 2023, only 1% of adults had used crypto to buy anything or make a payment (down from 2% in 2021).

That points to a fundamental truth about crypto: No one has yet identified a serious use for it in the real world — or at least in the world of legitimate finance. Crypto remains the tender of choice for criminals, including ransomware gangs.

What the crypto camp typically fails to acknowledge is that, for Americans outside of that shrinking cadre of holders, crypto emits a foul stench. According to a survey published in March, 61% to 77% of voters in six key swing states (Arizona, Michigan, Montana, Ohio, Nevada and Pennsylvania) have a negative perception of crypto.

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(This was a survey commissioned by Digital Currency Group, a big crypto investor, which fiddled the findings by saying they showed that “more than three-in-ten [voters in those states] report positive feelings toward crypto.”)

How strongly do even pro-crypto voters feel about it as a political issue? Not very, probably. Molly White, that indispensable and indefatigable chronicler of newfangled financial technology, conjectures that “many people who hold crypto … probably don’t identify as crypto advocates at all.”

They’re more likely “worried about the climate, or their right to own firearms, or the safety and support of transgender people, … or their ability to obtain an abortion or retain access to contraceptives, or access to school vouchers, or any of the many other issues that factor in when people choose which candidates to support and oppose.”

The single-minded advocacy for crypto really comes only from a handful of financial types deeply invested in crypto for their own purposes.

There’s no doubt that they have lots of money to spend. The leading crypto campaign fund, Fairshake, has reported nearly $203 million in contributions as of June 30.

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Fairshake spent more than $10 million starting last year in opposition to Rep. Katie Porter (D-Irvine) in her race for the Democratic nomination for U.S. Senate and Rep. Jamal Bowman (D-N.Y.) in his primary race for reelection. As it happens, both lost.

Porter was associated with Sen. Elizabeth Warren (D-Mass.) as a vociferous critic of crypto. Her victorious opponent in the primary, Rep. Adam B. Schiff, had taken a much more indulgent position, listing crypto among the “new developments in technology … we need to grow” in order to keep jobs and regulatory oversight in U.S. hands. Bowman had voted against a series of anti-crypto bills in the House.

Fairshake has smiled upon lawmakers who see things through crypto-colored glasses.

Among its top recipients in the current election cycle is Rep. Patrick McHenry (R-N.C.), who as chairman of the House Financial Services Committee pushed through a bill known as FIT21 that would take crypto regulation out of SEC hands and deliver it to the Commodity Futures Trading Commission, which is chronically underfunded and understaffed. (The measure hasn’t been taken up by the Senate.)

McHenry’s campaign has received $126,626 from the fund as of July 31, even though he has announced that he is not running for reelection this year and retiring from Congress.

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Fairshake is nothing like a grassroots fundraising operation. Of its $203 million, more than $160 million has come from six major crypto firms or investors, including Coinbase ($46.5 million), Ripple ($50 million), the venture firm Andreessen Horowitz ($44 million) and the firm led by Cameron and Tyler Winklevoss ($5 million), according to Open Secrets. Marc Andreessen, his partner Ben Horowitz and the Winklevoss twins have stated publicly that they plan further contributions in support of Trump.

Crypto spending on the election needs to be watched carefully. This isn’t an industry crucial for American economic development, notwithstanding its supporters’ assertions about its importance to financial innovation. So far, crypto hasn’t advanced the cause of innovation other than giving drug lords and criminal gangs a new way to ply their trades and swindle their marks.

Trump was right when he called bitcoin a scam, and Gensler was right when he called out the sector’s “record of failures, frauds, and bankruptcies,” which occurred “because many players in the crypto industry don’t play by the rules.”

Like other businesses — legitimate and not so legitimate — that have mustered their millions in election campaigns, the crypto gang wants new rules to be written in its own interest.

The victims will be ordinary Americans who have been taken in crypto cons of one variety or another. Just because crypto users in the U.S. don’t really number 52 million, it doesn’t mean the rest of us shouldn’t be protected from a new breed of financial predator.

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In a first for the country, voters in Monterey Park ban data centers

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In a first for the country, voters in Monterey Park ban data centers

Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.

As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.

Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.

Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.

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That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.

“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”

The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.

The Data Center Coalition, an industry trade group, expressed disappointment in the vote.

“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.

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“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”

SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.

The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.

City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.

There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.

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“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.

Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.

California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.

That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.

In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.

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Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”

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Rent-hike ban to protect fire victims ends despite gouging concerns

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Rent-hike ban to protect fire victims ends despite gouging concerns

A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.

The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.

The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.

“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”

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Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.

It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.

Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.

“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.

Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.

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“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”

Mitchell did not immediately respond to a request for comment.

There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.

In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.

In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.

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A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”

“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.

Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.

L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.

Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.

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Newsom defended the price-gouging protections shortly after they went into effect.

“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”

The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.

“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.

Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.

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Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.

The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.

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Read Nick Bilton’s Letter to Scott Pelley

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Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

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