Crypto

Analysis: U.S. crypto lobbyists court Democrats in fresh legislative push

Published

1 year ago

July 10, 2023

Analysis: U.S. crypto lobbyists court Democrats in fresh legislative push

WASHINGTON, July 10 (Reuters) – Embattled by a U.S. Securities and Exchange Commission (SEC) crackdown, crypto companies are making a renewed push on Capitol Hill to drum up support for legislation they hope will rein in the agency and provide regulatory clarity for the industry.

The Blockchain Association, Chamber of Digital Commerce, Crypto Council for Innovation, and Coinbase Global (COIN.O) are among the groups knocking on doors in Congress to build bipartisan support for a draft bill ahead of a key vote in coming weeks, said half a dozen executives and lobbyists.

While crypto companies have been expanding in Washington over the past two years to combat growing regulatory scrutiny, the latest industry scramble shows how recent high-profile SEC enforcement actions are galvanizing the crypto lobby.

“It’s another motivating factor to get up there and educate” Congress, said Cody Carbone, vice president of policy at the Chamber of Digital Commerce.

Crypto companies started out in a regulatory gray area, but the SEC has steadily asserted its authority over the industry, arguing most cryptocurrencies are securities and subject to its investor protection rules. That effort escalated last month when the SEC sued crypto exchanges Coinbase and Binance for failing to register some crypto tokens. The pair deny the allegations.

Most crypto companies dispute the SEC’s jurisdiction. They argue cryptocurrencies are more like commodities than securities, and want Congress to write laws making that clear.

Lobbyists are focused on a discussion draft bill by the Republican chairs of the House Financial Services and Agriculture committees, Patrick McHenry and Glenn Thompson respectively, which would define when a cryptocurrency is a security or a commodity. It would expand the Commodity Futures Trading Commission’s (CFTC) oversight of the crypto industry, while clarifying the SEC’s jurisdiction.

It is the most comprehensive of several crypto bills floated in recent years, with the greatest chance of becoming law, lobbyists say. That is because of the close cooperation between the committees that oversee the CFTC and SEC, which are often accused of vying for crypto oversight. With Democrats’ support, the bill could have a shot in the Senate.

“For anything to really get traction, it has to have bipartisan support. So we’re very focused on how we as an organization, and as the industry, can help facilitate that,” said Brett Quick, head of government affairs at the Crypto Council for Innovation. “It’s not a perfect bill, but it’s a really good starting point.”

McHenry and Thompson are discussing the proposal with crypto companies, regulators and Democrats, and hope the committees will vote on it before the August recess, senior Republican policy staff said. A spokesperson for Thompson said they are “coordinating closely.”

Democrats, though, are skeptical about crypto after several major players collapsed last year, including FTX. It is unclear if Maxine Waters and David Scott, the top Democrats on the Financial Services and Agriculture committees respectively, will back the bill. Both have raised concerns it would weaken the SEC’s powers.

“It proposes a cumbersome framework with inherent structural issues that will undermine the ability of our federal financial regulators to properly regulate and oversee an industry already rife with instability and fraud,” Scott said in a statement.

Still, crypto lobbyists believe other Democrats on the committees who have yet to take a stance on crypto could be persuaded that the bill would help protect American innovation and jobs, including Vicente Gonzalez and Sylvia Garcia.

“That’s where we are recommending that our members, other members of the industry, really target their advocacy efforts,” said Carbone.

Spokespeople for the SEC,
CFTC, Waters and Gonzalez did not provide comment. A spokesperson for Garcia said she is paying close attention to the bill.

‘MASSIVE SETBACK’

Lobbyists acknowledge they are on the backfoot after the FTX scandal and indictment of its high-profile founder Sam Bankman-Fried badly hurt the crypto industry’s credibility.

“It was certainly a massive setback, particularly because Sam Bankman-Fried was so personally active in Washington,” said Kristin Smith, CEO of the Blockchain Association.

The industry has been trying to repair the damage. It spent around $6 million on federal lobbying in the first quarter, putting it on track for another record year after spending $21.6 million in 2022, according to OpenSecrets. Coinbase was the biggest spender during the first quarter at $700,000.

The company is also running a grassroots campaign, encouraging crypto users to contact lawmakers, said Kara Calvert, head of U.S. policy at Coinbase. “It’s not just Coinbase that cares about crypto; it’s hundreds of thousands of people across the United States.”

Reporting by Michelle Price; Additional reporting by Hannah Lang and Douglas Gillison; Editing by Richard Chang

Our Standards: The Thomson Reuters Trust Principles.

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Crypto

[Analysis] “Cryptocurrency Holders Surge Over the Past Two Years”

Published

1 hour ago

December 22, 2024

Press Room

[Analysis] “Cryptocurrency Holders Surge Over the Past Two Years”

Image=Santiment

It has been observed that the number of cryptocurrency holders has surged over the past two years.

On the 23rd (local time), the on-chain analysis platform Santiment reported on X (formerly Twitter) that “the number of cryptocurrency holders has significantly increased over the past two years. The number of non-empty wallets for the top 4 cryptocurrencies by market capitalization has generally increased.”

Specifically, Bitcoin (BTC) has 54.7 million wallets (a 27% increase), Ethereum (ETH) 134.9 million wallets (a 47% increase), Tether (USDT) 657 million wallets (a 66% increase), and Ripple 575 million wallets (a 28% increase).

Crypto

Blockchain Revolution: How Cryptocurrency is Transforming Global Logistics – theafricalogistics.com

Published

9 hours ago

December 22, 2024

Press Room

Blockchain Revolution: How Cryptocurrency is Transforming Global Logistics – theafricalogistics.com

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The global logistics industry is undergoing a seismic shift, driven by the integration of blockchain technology and cryptocurrency.

These innovations promise to enhance transparency, efficiency, and security across the supply chain. From tracking shipments to streamlining cross-border payments, the synergy between blockchain and cryptocurrency is setting new benchmarks for the logistics sector.

1. Blockchain’s Role in Logistics

Blockchain technology, essentially a decentralized ledger system, enables secure and transparent recording of transactions. For logistics, this translates into the ability to track goods in real-time, authenticate the origin of products, and mitigate fraud. Key benefits include:

Enhanced Traceability: Every transaction, from the manufacturing stage to delivery, is recorded on an immutable ledger. This ensures that stakeholders have a comprehensive view of the supply chain.
Reduced Paperwork: By digitizing documents such as bills of lading and certificates of origin, blockchain eliminates the inefficiencies of manual processes.
Improved Trust: Smart contracts, self-executing agreements coded on the blockchain, reduce disputes and enhance trust between parties.

2. Cryptocurrency in Cross-Border Transactions

Traditional cross-border payments in logistics are often marred by high fees, long processing times, and currency exchange risks. Cryptocurrencies, like Bitcoin and stablecoins, are addressing these challenges by:

Lowering Transaction Costs: Cryptocurrency transactions bypass intermediaries, significantly reducing fees.
Speeding Up Payments: Transactions settle in minutes, eliminating delays common with traditional banking systems.
Enhancing Financial Inclusion: For businesses in emerging markets, cryptocurrencies provide access to global trade without reliance on conventional banking infrastructure.

3. Use Cases Transforming the Sector

Several real-world applications highlight the impact of blockchain and cryptocurrency in logistics:

Walmart’s Blockchain Initiative: Walmart leverages blockchain to track the origin of produce, ensuring food safety and traceability within its supply chain.
Maersk’s TradeLens Platform: Developed in collaboration with IBM, TradeLens uses blockchain to digitize and streamline global shipping documentation, reducing inefficiencies.
Cryptocurrency-Powered Freight Payments: Startups like Slync.io enable shippers to pay carriers using digital currencies, enhancing payment speed and reliability.

4. Challenges to Adoption

Despite its potential, the adoption of blockchain and cryptocurrency in logistics is not without hurdles:

Regulatory Ambiguities: The legal status of cryptocurrencies varies across countries, complicating implementation.
Scalability Concerns: Processing thousands of transactions per second remains a challenge for blockchain networks.
Skill Gaps: The logistics workforce often lacks the technical expertise to deploy and manage blockchain systems.

5. The Road Ahead

The integration of blockchain and cryptocurrency in logistics is still in its nascent stages but holds immense promise.

Industry players are investing in pilot projects to explore scalability and operational viability. The convergence of these technologies with artificial intelligence and IoT will further revolutionize the sector, enabling predictive analytics, autonomous supply chains, and more.

Conclusion

Blockchain and cryptocurrency are not just buzzwords but transformative tools reshaping the logistics landscape.

By fostering transparency, reducing costs, and expediting processes, these technologies are addressing long-standing inefficiencies in the supply chain.

As adoption accelerates, businesses that embrace this revolution stand to gain a significant competitive edge in an increasingly digital and globalized economy.

Also Read

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Crypto

My Top Cryptocurrency to Buy Right Now (Hint: It's Not Bitcoin) | The Motley Fool

Published

17 hours ago

December 22, 2024

Press Room

My Top Cryptocurrency to Buy Right Now (Hint: It's Not Bitcoin) | The Motley Fool

The performance of Bitcoin (BTC -0.53%) this year has been nothing short of extraordinary. It’s now up about 46% since the election on Nov. 5, and 146% year to date. Best of all, Bitcoin recently broke through the $100,000 price level to hit another all-time high just north of $108,000.

But what if I told you that there is another top cryptocurrency that is up more than 120% since the election, and 430% year to date? And that this cryptocurrency also just set a new all-time high? That cryptocurrency is Sui (SUI -3.69%), which now ranks 14th among all cryptocurrencies with a $13 billion market cap.

What is Sui and why haven’t I heard of it before?

If you’ve never heard of Sui, that’s understandable. The cryptocurrency only launched in May 2023, just as the market was emerging from the crypto winter of 2022. So, in many ways, its launch flew under the radar of investors. There were bigger issues to consider. The industry was still coping with the aftermath of the collapse and scandal of crypto exchange FTX in November 2022, and nobody was very interested in hearing about another new cryptocurrency launch.

But fast-forward to August 2024. That’s when 21Shares — the company that partnered with Cathie Wood’s Ark Invest on the launch of spot exchange-traded funds (ETFs) for Bitcoin and Ethereum (ETH -0.79%) — released a research report on Sui, detailing all of its unique characteristics. For example, it described how a new technical upgrade suddenly made Sui faster than any other top blockchain by a substantial margin. It pointed out how Sui was rapidly growing in terms of total value locked (TVL), which is a key metric showing the relative strength of a particular blockchain.

Image source: Getty Images.

The title of the report (“Is Sui a Solana (SOL -0.00%) Killer?”) was very provocative, at least for crypto investors. It suggested that Sui had the technological chops to take on Solana, which now ranks as the fifth-largest cryptocurrency. For several years now, Solana has been positioned as the next Ethereum, so Sui being tabbed as a potential Solana killer is a big deal. In fact, 21Shares suggested that there might be a $68 billion market opportunity for Sui if it was able to take on Solana and win.

How high can Sui go in 2025?

My primary concern right now with Sui is that it may be overheating. Just like Bitcoin, it is smashing through all-time high after all-time high. Right now, Sui is trading at about $4.50 after briefly testing the $5 price level. From the perspective of crypto traders, $5 presents the same psychological price barrier for Sui that $100,000 did for Bitcoin. It took Bitcoin a while to break through the $100,000 level, so Sui may not be able to break through the $5 price level by the end of this year.

But, in 2025, watch out. Just take a look at this comparison chart of Bitcoin and Sui since the presidential election. That leads me to think that the market is very bullish on Sui’s prospects under the Trump administration.

Bitcoin / U.S. dollar chart by TradingView

Moreover, consider the trading volume that Sui is now seeing on Coinbase Global (COIN 1.75%). Sui has become one of the 10 most popular cryptocurrencies on the platform in terms of 24-hour trading activity. Granted, the trading volume in Sui is nowhere near that of Bitcoin or Ethereum. But there’s more activity in Sui than in popular cryptocurrencies such as Chainlink, Litecoin, Cardano, Shiba Inu, and Avalanche.

Best of all, Sui has a major new product launch coming in 2025. It’s a $599 handheld gaming device that is currently available for pre-order online. If that product launch is a success, then it could be off to the races for Sui. It could easily double in price to hit the $10 price level.

This cryptocurrency could soar even higher if it ever realizes its full potential as the next Ethereum. Imagine if you had invested in Ethereum just 18 months after its launch. Most likely, you’d be a crypto millionaire by now. In December 2016, Ethereum was trading around $5, which is roughly where Sui is trading right now. Today, Ethereum trades for about $3,400.

That said, I can’t emphasize enough how speculative Sui is. It is still a baby in crypto terms. It has only been around for 18 months, and it can be difficult to get good data and reliable information about it. So, do your due diligence before investing in Sui, and keep your expectations in check. An investment opportunity like Ethereum might only come around once in a lifetime, so it’s asking a lot for it to happen with Sui as well.

Dominic Basulto has positions in Bitcoin, Ethereum, SUI, and Solana. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Ethereum, SUI, and Solana. The Motley Fool has a disclosure policy.