Crypto

Republicans claim betrayal as cryptocurrency PAC backs Democrats

Published

5 months ago

August 14, 2024

Republicans claim betrayal as cryptocurrency PAC backs Democrats

JACKSON HOLE, Wyo. — A leading pro-cryptocurrency political group has dumped millions of dollars into high-profile Michigan and Arizona Senate races to back Democrats against Donald Trump-endorsed candidates, angering top Republicans who viewed the industry as an ally, not an opponent.

Fairshake PAC and its affiliated super PACs are reserving millions in advertising spending to influence three U.S. Senate races this cycle, and have announced commitments of about $3 million each to Democrats Rep. Ruben Gallego, who is running in Arizona, and Rep. Elissa Slotkin, a candidate in Michigan, it said on Wednesday.

The spending risks upending GOP efforts to secure seats in two key battleground states in the fight for control of the Senate and comes as top Republicans — amid a hostile regulatory environment — have leveraged their political capital to broker closer ties to the cryptocurrency industry.

When asked for comment, Fairshake referred NBC News to Slotkin and Gallego’s current A-ratings from Stand With Crypto, a nonprofit group advocating for the crypto industry. Both Democrats this year crossed party lines to support a historic crypto bill.

For years, Slotkin had expressed skepticism of cryptocurrency until an apparent change of heart in recent months. The Michigan lawmaker earned an F-rating from Stand With Crypto as recently as March.

Gallego, who is facing off against Republican Kari Lake, had failed in the past to back legislation that was supported by the crypto industry and, in 2022, praised on social media a candidate who “slayed the Crypto beast.” Last year, Gallego signed onto a letter, spearheaded by Sen. Elizabeth Warren, D-Mass., to address crypto-financed reforms, crediting her as an “outspoken advocate for regulation and oversight of crypto.” He has also criticized business owners like Elon Musk for “pushing Bitcoin” and profiting off cryptocurrency, and signed onto legislation perceived as hostile by the industry in years past.

Lake earned an A rating from the group Stand With Crypto for her strong statements about supporting the industry, and is assessed as “very pro-crypto.”

A spokesperson for Fairshake, Josh Vlasto, said in a statement that the super PAC and its affiliates are working to “support candidates who embrace innovation, want to protect American jobs and are committed to working across the aisle to get things done and oppose those who do not.”

The crypto industry and its aligned super PACs have amassed more than $100 million to spend in House and Senate races, part of an effort to shape a favorable regulatory landscape by bolstering crypto-friendly candidates. In Ohio alone, the group is targeting $12 million in support of a Republican Senate candidate running to unseat Democratic Sen. Sherrod Brown, chair of the powerful Committee on Banking, Housing and Urban Affairs, who is viewed by industry advocates as a crypto skeptic.

Fairshake is the leading PAC funded by digital asset firms, with its most significant contributions coming from a handful of donors: blockchain firm Ripple; individual donors affiliated with the venture firm Andreessen Horowitz; and Coinbase, the largest U.S. cryptocurrency exchange.

Republican operatives making the case for crypto say that it is a growth industry that the party has embraced for good reasons, and that these efforts will continue to pay off over time.

“The world has changed since Trump’s first term in office,” said Matt Mackowiak, a GOP strategist based in Austin, Texas. “The smart Republicans have seen that opportunity and have moved towards it. And it has multiple advantages: One, it is a source of fundraising. Two, it is a way to attract votes from a younger demographic. And three, it is an issue that can set up a contrast with the Democrats, and makes Republicans look like the party of the future.”

Now, simmering tensions are moving into the open as alarmed Republicans eye Fairshake, its affiliated super PACs and top backers with mounting skepticism. They warn that the groups risk losing sway with Republicans after working to cultivate hard-won relationships and are questioning the durability of Gallego and Slotkin’s support.

“It is reminiscent of when the Chamber of Commerce bankrolled a bunch of anti-business House Democrats who turned around and passed massive tax hikes on businesses with the so-called Inflation Reduction Act,” a senior GOP Senate aide said. “Now, the Chamber of Commerce can’t even get a meeting with House Republican Leadership to discuss their priorities.”

Congressional Republicans and the Chamber of Commerce have been on rocky terms in recent years after the business lobbying group became irate with Republicans for not supporting immigration reforms and not stopping Trump’s tariffs, both positions the group felt harmed American business. The chamber announced a willingness to back Democrats, a move that was unimaginable in the Obama era and that enraged many Republicans on the hill.

The aide continued: “It is surprising that whoever is advising Fairshake has come up with the same flawed strategy.”

One GOP strategist involved in Senate races warned that the spending risks hurting Trump as well since his allies are being attacked.

“Coinbase and Fairshake are attempting to become toxic to Republicans. Spending against two key GOP candidates could jeopardize the Senate and harm Trump,” said the source, who was not authorized to speak publicly so as not to get ahead of the former president. “Gallego and Slotkin have voted against bitcoin interests and would vote to confirm a far-Left SEC Chairman. It makes no sense.”

The spending was a hot topic of conversation as Republicans descended on Jackson Hole this week, alongside Marc Andreessen and representatives from Coinbase and other crypto groups, to attend consecutive retreats hosted by the Congressional Leadership Fund super PAC and House Speaker Mike Johnson, R-La. Andreessen and his business partner, Ben Horowitz, have endorsed Trump in the presidential race and criticized the Biden-Harris administration’s regulatory agenda and its promise to tax unrealized capital gains. Together, Andreessen and Horowitz are among Fairshake’s most significant donors.

“Republicans are WTF about what’s going on with Fairshake, and I think that’s a pretty bad omen for the industry, that people are wondering why our main trade association is pointing its arsenal at our friends,” said one industry leader who was granted anonymity to speak freely. “A lot of people are walking around the CLF conference astonished that this is the strategic chess move that the industry has made.”

A prominent member of Trumpworld likened the support “to a pro-Israel group giving money to the Squad.” A source familiar with the comments who was not authorized to speak publicly said the comparison suggests that Fairshake is supporting a cohort hostile to its interest.

Trump has promised to implement crypto-friendly policies if elected, culminating in a reversal of his stance from his time in the White House, when he criticized Bitcoin as “highly volatile and based on thin air.” Trump’s campaign now accepts Bitcoin donations, and his selection of running mate JD Vance was viewed as a win for the industry. Vance has called for looser regulation of crypto and disclosed that he has $250,000 to $500,000 worth of bitcoin among his assets.

Mackowiak said the shift is in part generational, with Vance credited with convincing a group of Silicon Valley investors to host Trump on their popular podcast and hold a San Francisco fundraiser that raked in millions.

A former Trump regulator said that a future Trump administration would invite “a more nuanced approach to regulation” around crypto but that a regulatory shift should be expected regardless of who wins the presidential race. “It’ll just be faster if you have a Trump presidency.”

Since taking over the Democratic Party’s nomination, Vice President Kamala Harris has begun seeking a “reset” with the crypto industry, with executives from Coinbase, Ripple and Kraken voicing their concerns to the White House during a Zoom call, according to Bloomberg. Democrats have launched a Crypto4Harris group that is seeking to formalize the industry’s ties to the presidential candidate. Top Harris surrogates are also signaling a more open environment should she win in November, with Maryland Gov. Wes Moore promising during a recent interview on CNBC that Harris would offer a regulatory framework that would be more business-friendly than under Biden.

The former regulator said many are still skeptical, however.

“The big political question here is, can Harris convince proponents of industry that she has done a 180, or is it just talk?” he said. “Because they will not believe that she will cross Elizabeth Warren.”

This article was originally published on NBCNews.com

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Crypto

Trump’s new meme coins have MAGA crypto bros up in arms

Published

7 hours ago

January 21, 2025

Press Room

Trump’s new meme coins have MAGA crypto bros up in arms

Happy Tuesday! Here’s your Tech Drop, my weekly compilation of the past week’s top stories from the intersection of technology and politics.

Trump meme coins cause a rift in MAGA world

Cryptocurrency enthusiasts are not happy about Donald and Melania Trump’s new “meme coins” — essentially, glorified trading cards. The digital tokens seem like a perfect vessel for anyone, including foreign governments, to funnel money to the Trump family. That’s one reason why some experts have said the ventures — launched within days of Trump’s inauguration — are ripe for blatant corruption.

And even some of Trump’s biggest fans are bemoaning the move. The Wall Street Journal published an article that quotes Trump-supporting crypto bros who are worried that this move will delegitimize the industry. On Monday, the Rev. Lorenzo Sewell, the pastor who gave the benediction at Trump’s swearing-in, announced that he also has launched a meme coin. Probably not helping with that whole legitimacy thing.

TikTok’s legal limbo

Trump’s executive order requiring the postponement of the TikTok ban, which was set to take effect in the U.S. this week, appears to have saved the app for now. At least, that’s what Trump and the app’s owners want us to think.

But Business Insider published an article raising questions about Trump’s authority to single-handedly overrule a law that received overwhelming bipartisan support in Congress and was unanimously upheld by the Supreme Court.

Creepy ‘surveillance pricing’

In one of its last acts during the Biden administration, the Federal Trade Commission and its then-chair, Lina Khan, revealed the initial findings of the agency’s “surveillance pricing” market study. The report shows how companies can manipulate pricing based on personal data. According to the FTC, “details like a person’s precise location or browser history can be frequently used to target individual consumers with different prices for the same goods and services.”

Kristi Noem’s concerning misinfo plans

South Dakota Gov. Kristi Noem, whom Trump has nominated to lead the Department of Homeland Security, says she wants to shut down the department’s efforts at fighting foreign actors’ misinformation campaigns targeting Americans, effectively saying she wants to leave Americans vulnerable to manipulation.

Biden’s FCC chair warns about Trump

On her way out the door, outgoing Federal Communication Commission Chair Jessica Rosenworcel warned about Trump’s efforts to suppress free speech and press freedoms. In a post last week, I wrote about the statement she released while dismissing multiple complaints from activist groups seeking to punish news outlets for coverage they didn’t like.

Rosenworcel compared Trump’s attacks on the First Amendment to actions taken by Presidents Richard Nixon and John Adams, and she also cited his push to “revoke licenses for broadcast television stations because he disagrees with their content and coverage” — noting that the FCC “has a duty to respect the Constitution.”

Bigwigs snicker at Sewell’s remarks

The aforementioned pastor, Sewell, has garnered criticism — including from MSNBC’s Joy Reid — for his inaugural benediction, which borrowed from the Rev. Martin Luther King Jr.’s “I Have a Dream” speech and relied on what seemed like an overdone Black preacher affect. One thing I noted? Google CEO Sundar Pichai and Cantor Fitzgerald CEO Howard Lutnick seemingly found the performance pretty funny as they watched and snickered in the background.

To me, the sight — of MAGA-aligned elites giggling during a King-inspired performance on MLK Day — epitomized some of the disrespect that Black people have come to expect from Trump and his movement.

A far-right influencer speaks … gibberish

Far-right influencer Curtis Yarvin — who has pushed racist pseudoscience, promoted the idea of dictatorial leadership and been name-checked by JD Vance — gave an interview to The New York Times recently. The interview, in which Yarvin explains his belief that the Civil War didn’t improve anyone’s lives — including enslaved people’s — is a perfect example of how pseudo-intellectual jargon and obfuscation can be used to mask bigotry.

Crypto

Trump's Executive Actions Signal a New Era for Cryptocurrency Regulation | PYMNTS.com

Published

15 hours ago

January 21, 2025

Press Room

Trump's Executive Actions Signal a New Era for Cryptocurrency Regulation | PYMNTS.com

President-elect Donald Trump is reportedly planning to use his executive authority to support cryptocurrency companies and promote broader digital asset adoption during the early days of his administration, according to Reuters. This initiative marks a sharp departure from the regulatory approach under President Joe Biden’s administration, which took stringent measures to address fraud and money laundering in the crypto sector.

Executive Orders to Signal Crypto Support

Trump is expected to issue an executive order establishing a cryptocurrency advisory council, a proposal he initially suggested in July, as reported by Reuters. Two sources familiar with the discussions noted that this council could include up to 20 members tasked with advising the government on creating crypto-friendly policies. Bloomberg News was the first to report the plan to establish such a council.

Additionally, Trump’s team has reportedly discussed reversing specific regulatory measures that have posed challenges for crypto companies. According to Reuters, one potential target is the 2022 Securities and Exchange Commission (SEC) accounting guidance known as “SAB 121,” which has been criticized for increasing costs for companies, particularly banks, attempting to hold cryptocurrencies for third parties. This action could alleviate financial burdens and facilitate greater participation in the crypto market.

Related: FTC Raises Antitrust Concerns Over Big Tech’s AI Partnerships

Controversial “Operation Choke Point 2.0” in Focus

Another area of focus for the incoming administration is addressing concerns raised by cryptocurrency executives about “Operation Choke Point 2.0.” This term, used by industry insiders, describes what they perceive as a coordinated effort by bank regulators to restrict crypto companies’ access to traditional financial services. While bank regulators have denied the existence of such an initiative, sources cited by Reuters suggest that Trump plans to issue an executive order to halt these practices.

Broader Implications for the Crypto Sector

If implemented, these policy changes could significantly impact the cryptocurrency industry by fostering a more supportive regulatory environment. Experts in both the regulatory and crypto spaces told Reuters that such actions might accelerate the mainstream adoption of digital assets, signaling a new era for the sector under the Trump administration.

This approach stands in stark contrast to the policies of the Biden administration, which pursued legal action against major cryptocurrency exchanges, including Coinbase, Binance, and Kraken, in efforts to combat illicit activities and safeguard consumers.

Source: Reuters

Crypto

Top Cryptocurrency to Invest in Before Prices Soar, According to Market Data

Published

23 hours ago

January 21, 2025

Press Room

Top Cryptocurrency to Invest in Before Prices Soar, According to Market Data

More than 560 million people worldwide currently own crypto assets, and new and seasoned investors alike are constantly looking for promising new projects to buy into.

New projects can usually be purchased at lower prices, when compared to established coins, and often have the potential to sky-rocket in value. Because of the potential gains to be had, investors are constantly on the lookout for possible investments.

Let’s explore the upcoming crypto that investors should think about buying before prices go up.

Upcoming Crypto With Potential

Investors often do their own research to find the best new projects to buy into. Research usually includes listening to the news, reading crypto blogs, and following sites like Coinbase closely. Coinbase provides a crucial gateway to adopt new cryptocurrencies. The “Coinbase Effect” describes new tokens listed that often experience significant price surges of 20-50%. It’s the ideal source of investment opportunities for short-term investors. Because of this, investors often review upcoming Coinbase exchange listings to find promising new coins. Crypto writer Michael Graw explains that Coinbase is known for its strict vetting process. This means that the coins listed on Coinbase have already been reviewed by experts, which many investors appreciate. Between checking sites like Coinbase, keeping up with the news, and reading crypto articles online, investors can stay up to date with potential coins to invest in. Here are a few of the top choices:

Ethereum: The Smart Contract Powerhouse

Ethereum dominates the decentralised application (dApp) realm, particularly with the Ethereum 2.0 rollout that enhances energy efficiency and scalability. Ethereum currently trades at around £5,000, providing a top choice for retail and institutional investors. The smart contract giant provides opportunities for long-term investments.

Analysts project that Ethereum could double its value over the next 1.5 years because the network demand continues to grow. The blockchain’s ecosystem hosts decentralised exchanges, DeFi platforms, and NFTs, engraving Ethereum’s status in the blockchain space as a critical infrastructure with smart contracts for data privacy and security.

Bitcoin: The Dominant Crypto Force

Bitcoin is the foundation of the cryptocurrency market, capitalising the industry at a market value of £1.5 trillion and currently trading around the £76,000 marker in early December. Bitcoin’s inflation hedge capabilities and reliable long-term value stores make it indispensable in an investor’s diversified portfolio.

Tim Draper, a trusted venture capitalist, predicts Bitcoin to hit $250,000 or £198,000 by the end of 2025, indicating the potential for a 150% growth rate on the cryptocurrency’s market. Increasingly supportive government policies and adoption will drive Draper’s predictions. For example, there is a proposed Bitcoin reserve for the US market.

High-Potential Altcoins

Solana: Exceptional Scalability and Speed

Solana is known as the Ethereum killer because it provides faster transaction speeds, reaching 65,000 transactions a second. It also charges minimal fees and has an ecosystem valued at over £25 billion. Solana is fast becoming a good choice for NFTs and DeFi applications. Additionally, analysts forecast the potential for 80-120% returns by mid-2025.

Wall Street Pepe: Trading and Staking

Wall Street Pepe ($WEPE) is showing great promise in the crypto scene. This coin ticks all of the usual boxes but also allows investors to showcase their best trades each week to win prizes. Additionally, investors can stake their Wall Street Pepe in order to earn more from what they already have, which is a win-win.

Polkadot and Polygon: Specialists in Scalability

Polygon enables faster and more affordable transactions by addressing scalability issues in Ethereum, providing layer-2 solutions. The current market cap valuation is around £10 billion but projections show possible doubling by the end of 2025. Polkadot uses a unique parachain technology that allows interoperability between blockchains, and the price prediction indicates the potential for a 383% return on investment (ROI) by the end of 2025.

XRP: Riding the Legal Victory Wave

The Ripple Network’s native token XRP shows promise with a fragmented victory against the US Securities and Exchange Commission (SEC). XRP has surged 120% since mid-2024, currently trading at around £1. Ripple’s partnerships with major giants like Standard Chartered and Santander have analysts believing it may double in value by the end of 2025.

Chainlink: Bridging Real-World Data With Blockchain Technology

Chainlink plays a pivotal role in the decentralised oracle industry, currently trading at around £7.20 and having an impressive early market cap of £3.7 billion. The technology innovates how real-world data and smart contracts interact, making it an integral tool for DeFi and enterprise solutions. Chainlink also integrates well with Solana and Ethereum and predictions show the potential for an 85% price surge by the end of 2025.

The Impact of Institutional Interest

The cryptocurrency investment landscape relies heavily on institutional interest. For example, spot Bitcoin ETF introductions captivated billions in capital while funds like the iShares Bitcoin Trust accumulated more than £30 billion in months.

Still, institutional investors use diversified portfolios with utility-driven digital assets like Chainlink to secure smart contracts. Avalanche, another fast blockchain, is also gaining traction in DeFi, with both Altcoins positioned to exceed 100% returns by the end of 2025.

The Role of Regulation

The Financial Conduct Authority (FCA) allows UK investors to benefit from a more secure and transparent cryptocurrency investment domain. The FCA implemented measures to regulate cryptocurrency advertisements to guarantee clear guidelines for retail investors.

The widespread adoption and regulatory improvements are expected to entice more attention from institutional investors to ensure sustainable growth while the regulatory guidelines protect everyday investors seeking long-term but steady investment prospects.

Retail Diversification and Sentiment

The retail investor environment drives market trends harder than most institutions, especially with sentiment-driven initiatives using consumer-centric tokens. Some new Coinbase listings show promise for short-term volatility with possible price surges in 2025.

However, retail investors prefer the active ecosystems, innovative decentralisation, and robust fundamentals of Bitcoin, Ethereum, and some older Altcoins. If investors could learn anything from the retail sector, it would be to diversify their portfolio with high-return crypto.

Diversify investment portfolios with well-known and stable cryptocurrencies like Ethereum or Bitcoin while adding some high-potential Altcoins like Cardano, Polygon, and Solana to balance the risk and reward as retail investors do.