Crypto
Shadowy crypto companies think they can buy Arizona votes. So far, it’s working
Voters, beware: Crypto companies are throwing big money into elections in Arizona and other states in hopes of quashing any opposition to their industry.
Who is running in Arizona’s nine congressional district races?
Arizona has nine seats in the U.S. House of Representatives up for grabs in the 2024 election. Here’s what voters need to know for November elections.
Cryptocurrency advocates threw around some serious cash in Arizona’s primary election.
While their success at influencing outcomes is debatable, their commitment to being political players is not.
Crypto corporations have pumped an estimated $120 million into federal election races this year, primarily through nonpartisan super political action committees (PACs) devoted to electing pro-crypto candidates and defeating crypto skeptics.
All indications point to more of the same in the general election, and beyond.
Crypto backers gave Shah an ‘F’ rating
In Arizona, that likely will start with the Congressional District 1 race. In the primary, Protect Progress, one of three super PACs funded by crypto interests, spent more than $400,000 to support former White House aide and one-time Democratic state chair Andrei Cherny.
Cherny lost.
But crypto supporters were as much backing Cherny as they were opposing Amish Shah, who emerged victorious.
The advocacy group Stand With Crypto gave Shah, an ER physician and former state lawmaker, an F rating as “strongly against cryto.”
Shah faces incumbent David Schweikert, a Republican, in one of the most competitive congressional races nationally. The Cook Political Report rates it a toss-up.
Shah’s grassroots campaign: Helped him win over big money
Crypto interests might have spent more in the CD 1 primary, but Cherny and Shah were locked in a six-person field.
They poured even more money into District 3
In Congressional District 3, Protect Progress directed nearly $1.4 million in outside spending to support Yassamin Ansari, who won a narrow race against Raquel Terán.
Ansari is the odds-on favorite to capture the seat vacated by Ruben Gallego in a district where Democrats enjoy a 30 percentage point lead over Republicans in registered voters.
It’s plausible that crypto super PACs will also be active in the Congressional District 6 race between first-term U.S. Rep. Juan Ciscomani, a Republican whom Stand With Crypto considers a strong supporter, and Democrat Kirsten Engel. The advocacy group has not given a rating on Engel.
Cook Political Report also has the CD 6 contest as a toss-up.
We won’t get the quarterly look at spending in the general election for a few weeks, but there’s no reason to believe crypto will turn off the spigot any time soon.
Crypto is using the cash to influence legislation
The crypto sector’s emergence as election influencers comes at a precarious time. Major crypto companies have been sued by federal regulators over trading practices and handling of customer assets, which have implications for the sector.
Flush with money from an upswing in crypto prices, advocates are seeking to install politicians who would help pass legislation that’ll settle the debate over how crypto should be classified and which regulatory rules should apply.
According to the consumer advocacy group Public Citizen, crypto spending accounts for nearly half of all corporate money contributed during this year’s election.
The crypto-backed super PAC Fairshake has spent $10 million on ads attacking progressive Katie Porter, who’s in a runoff with U.S. Rep. Adam Schiff for the U.S. Senate.
Porter has raised questions about the energy required to “mine,” or create, cryptocurrency and its relationship to climate change.
Arizona Legislature seems the next likely target
Crypto advocates point to the defeat of New York U.S. Rep. Jamaal Bowman in the Democratic primary — Fairshake spent $2 million to take down Bowman — as a force that politicians must reckon with.
A more open question is if and when crypto may look to wield similar influence in Arizona’s state legislative races.
There has been a host of bills intended to help expand or encourage adoption of cryptocurrency, including allowing Arizonans to pay state fines and taxes using the currency and directing the state retirement system to look into investing in digital assets.
Some have gotten floor votes, and a few have been enacted.
The negative ratings that triggered the heavy spending for the opponents of Shah and Terán were based, in fact, on their opposition to as few as a single crypto-related bill.
This political spending reflects the existential threat that crypto naysayers and skeptics represent for a digital currency sector that’s still trying to find its footing.
Which means voters have extra cause to be wary of attack ads leading up to Nov. 5.
Reach Abe Kwok at akwok@azcentral.com. On X, formerly Twitter: @abekwok.
On Tuesday, light truck clean energy solutions provider Worksport Ltd (NASDAQ:WKSP) announced that it had selected Coinbase Global, Inc (NASDAQ:COIN) as its preferred custodian partner.
Worksport cited Coinbase’s substantial regulatory compliance, robust security measures, and insurance-backed custody solutions.
This strategic move aligns with Worksport’s Cryptocurrency Treasury Strategy announced on December 5, 2024, wherein the company expanded its Corporate Treasury and allowed a portion of its surplus cash reserves to be held in Bitcoin (CRYPTO: BTC/USD) and (CRYPTO: XRP).
Worksport’s Board of Directors determines investable excess cash, which allows Worksport to make initial purchases.
Also Read: Amazon To Shut 7 Quebec Fulfillment Centers, Axe Around 2,000 Jobs
Worksport chief Steven Rossi stated that having a top-tier crypto custodian is like having a top-tier banking partner who aligns with Worksport’s commitment to safeguarding corporate assets.
The treasury update aligns with Worksport’s ongoing growth initiatives, including a multi-fold revenue increase, a push toward cash flow positivity, and the imminent launch of three new product lines in 2025, the company said.
Worksport anticipates that this collaboration will streamline the company’s entry into the cryptocurrency space.
Price Actions: WKSP stock traded higher by 4.36% at $0.92 premarket at the last check on Tuesday.
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This article EXCLUSIVE: Worksport Taps Coinbase As Cryptocurrency Custodian For Treasury Strategies originally appeared on Benzinga.com
© 2025 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Cryptocurrencies have transformed the
financial landscape, captivating tech enthusiasts, investors, and regulators
worldwide. However, as digital assets gain prominence, critical questions arise
about the role of financial literacy and cognitive biases in shaping investment
behaviours.
Empirical evidence underscores that
financial literacy significantly influences financial stability by enhancing
individual decision-making. People with higher financial literacy make prudent
choices, such as budgeting effectively, saving for emergencies, and
understanding borrowing costs.
Conversely, low financial literacy often leads
to poor decisions, over-indebtedness, and susceptibility to distorted
expectations, amplifying systemic risks.
Why does financial literacy play a
pivotal role in the cryptocurrency ecosystem? The inherent complexity of
digital assets like cryptocurrencies necessitates accurate financial knowledge
to navigate their risks. Understanding blockchain technology, digital wallets,
and trading platforms—all critical components of cryptocurrency
investment—requires a level of digital and financial literacy that many
investors lack.
Cryptocurrencies themselves are diverse, ranging from
established names like Bitcoin and Ethereum to speculative altcoins. Without
the ability to critically assess technology stacks and market trends, investors
may fall prey to speculative bubbles or projects with little intrinsic value.
A
lack of financial literacy exacerbates these challenges, making it difficult to
comprehend the potential consequences of market fluctuations, thereby
increasing vulnerability to shocks. The connection between financial
literacy and cryptocurrency ownership is particularly significant given the
complexity of these assets compared to traditional financial instruments and
the risks they pose to financial stability.
Study Links Overconfidence to Crypto
Investments
A recent study, Cryptocurrency
Ownership and Cognitive Biases in Perceived Financial Literacy, conducted in
Spain by Santiago Carbó, Pedro J. Cuadros, and Francisco Rodríguez and funded
by Funcas, sheds light on this issue. The research investigates how financial
literacy bias—the gap between perceived and actual financial knowledge—affects
cryptocurrency ownership.
Based on a survey of over 2,000 participants, the
study identifies financial literacy bias as a critical determinant of
cryptocurrency ownership, even after controlling for variables such as age,
income, and digital activity.
Machine Learning Highlights Crypto
Ownership Factors
Using advanced machine learning
techniques, the study reveals that individuals who overestimate their financial
knowledge are significantly more likely to invest in cryptocurrencies.
Specifically, those who overestimated their financial literacy were 75% more
likely to hold digital assets compared to those with accurate self-assessments.
For every unit increase in financial literacy bias, the odds of owning
cryptocurrencies rose by approximately 4.37 times.
If you consistently make money and lose it back to the market even when you know you are intelligent, then what is missing from your education is financial literacy.
💥What you do with your money once you make it
💥How to keep the market /people from taking the money from you…— Adaora Favour Nwankwo (@adaora_crypto) January 6, 2025
Why does this happen? Individuals who
overestimate their financial literacy may feel overly confident in facing the
complexities of the cryptocurrency market. Cognitive biases, such as
confirmation bias, can further reinforce this confidence by leading individuals
to focus on information that validates their investment choices while
disregarding evidence of potential risks. Addressing these biases is essential
for fostering more rational and informed investment behaviour.
Cognitive Biases Fuel Crypto
Speculative Bubbles
Interestingly, the study also found
that when financial literacy scores were adjusted to account for bias, the
likelihood of cryptocurrency ownership decreased by 25.4%. This highlights the
importance of accurate self-assessment in mitigating risky investment
behaviours.
While cryptocurrency adoption is not
inherently harmful, it can pose systemic risks when driven by misinformation or
cognitive biases. Cryptocurrencies often attract individuals seeking quick
returns, potentially fueling speculative bubbles and increasing market
volatility. Such conditions also create opportunities for fraud and scams,
further destabilising the financial ecosystem.
Save for later✅ Follow for more ❤️
Since Crypto is a high risk asset and can make your investment zero too, so invest wisely and Do your proper research before investing and grow your portfolio wisely! pic.twitter.com/zU8kyUxkGl
— Mohini Of Investing (@MohiniWealth) January 5, 2025
Promoting Financial Education to
Mitigate Risks
For policymakers and regulators,
these findings emphasize the urgency of promoting financial education.
Initiatives that address cognitive biases and enhance objective financial
literacy can help mitigate risks and encourage responsible investment
behaviour. Regulators and industry leaders should collaborate to ensure that
investors have access to reliable information and safeguards against misleading
claims.
By fostering a culture of financial literacy and addressing cognitive
biases, we can help ensure that the cryptocurrency revolution is both inclusive
and sustainable. Whether as investors, educators, or policymakers, recognizing
the interplay between knowledge, perception, and behaviour is key to succeeding
in this dynamic financial landscape.
Francisco Rodríguez also contributed to this article.
Cryptocurrencies have transformed the
financial landscape, captivating tech enthusiasts, investors, and regulators
worldwide. However, as digital assets gain prominence, critical questions arise
about the role of financial literacy and cognitive biases in shaping investment
behaviours.
Empirical evidence underscores that
financial literacy significantly influences financial stability by enhancing
individual decision-making. People with higher financial literacy make prudent
choices, such as budgeting effectively, saving for emergencies, and
understanding borrowing costs.
Conversely, low financial literacy often leads
to poor decisions, over-indebtedness, and susceptibility to distorted
expectations, amplifying systemic risks.
Why does financial literacy play a
pivotal role in the cryptocurrency ecosystem? The inherent complexity of
digital assets like cryptocurrencies necessitates accurate financial knowledge
to navigate their risks. Understanding blockchain technology, digital wallets,
and trading platforms—all critical components of cryptocurrency
investment—requires a level of digital and financial literacy that many
investors lack.
Cryptocurrencies themselves are diverse, ranging from
established names like Bitcoin and Ethereum to speculative altcoins. Without
the ability to critically assess technology stacks and market trends, investors
may fall prey to speculative bubbles or projects with little intrinsic value.
A
lack of financial literacy exacerbates these challenges, making it difficult to
comprehend the potential consequences of market fluctuations, thereby
increasing vulnerability to shocks. The connection between financial
literacy and cryptocurrency ownership is particularly significant given the
complexity of these assets compared to traditional financial instruments and
the risks they pose to financial stability.
Study Links Overconfidence to Crypto
Investments
A recent study, Cryptocurrency
Ownership and Cognitive Biases in Perceived Financial Literacy, conducted in
Spain by Santiago Carbó, Pedro J. Cuadros, and Francisco Rodríguez and funded
by Funcas, sheds light on this issue. The research investigates how financial
literacy bias—the gap between perceived and actual financial knowledge—affects
cryptocurrency ownership.
Based on a survey of over 2,000 participants, the
study identifies financial literacy bias as a critical determinant of
cryptocurrency ownership, even after controlling for variables such as age,
income, and digital activity.
Machine Learning Highlights Crypto
Ownership Factors
Using advanced machine learning
techniques, the study reveals that individuals who overestimate their financial
knowledge are significantly more likely to invest in cryptocurrencies.
Specifically, those who overestimated their financial literacy were 75% more
likely to hold digital assets compared to those with accurate self-assessments.
For every unit increase in financial literacy bias, the odds of owning
cryptocurrencies rose by approximately 4.37 times.
If you consistently make money and lose it back to the market even when you know you are intelligent, then what is missing from your education is financial literacy.
💥What you do with your money once you make it
💥How to keep the market /people from taking the money from you…— Adaora Favour Nwankwo (@adaora_crypto) January 6, 2025
Why does this happen? Individuals who
overestimate their financial literacy may feel overly confident in facing the
complexities of the cryptocurrency market. Cognitive biases, such as
confirmation bias, can further reinforce this confidence by leading individuals
to focus on information that validates their investment choices while
disregarding evidence of potential risks. Addressing these biases is essential
for fostering more rational and informed investment behaviour.
Cognitive Biases Fuel Crypto
Speculative Bubbles
Interestingly, the study also found
that when financial literacy scores were adjusted to account for bias, the
likelihood of cryptocurrency ownership decreased by 25.4%. This highlights the
importance of accurate self-assessment in mitigating risky investment
behaviours.
While cryptocurrency adoption is not
inherently harmful, it can pose systemic risks when driven by misinformation or
cognitive biases. Cryptocurrencies often attract individuals seeking quick
returns, potentially fueling speculative bubbles and increasing market
volatility. Such conditions also create opportunities for fraud and scams,
further destabilising the financial ecosystem.
Save for later✅ Follow for more ❤️
Since Crypto is a high risk asset and can make your investment zero too, so invest wisely and Do your proper research before investing and grow your portfolio wisely! pic.twitter.com/zU8kyUxkGl
— Mohini Of Investing (@MohiniWealth) January 5, 2025
Promoting Financial Education to
Mitigate Risks
For policymakers and regulators,
these findings emphasize the urgency of promoting financial education.
Initiatives that address cognitive biases and enhance objective financial
literacy can help mitigate risks and encourage responsible investment
behaviour. Regulators and industry leaders should collaborate to ensure that
investors have access to reliable information and safeguards against misleading
claims.
By fostering a culture of financial literacy and addressing cognitive
biases, we can help ensure that the cryptocurrency revolution is both inclusive
and sustainable. Whether as investors, educators, or policymakers, recognizing
the interplay between knowledge, perception, and behaviour is key to succeeding
in this dynamic financial landscape.
Francisco Rodríguez also contributed to this article.
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