BUFFALO, N.Y. — In the past decade or so, digital cryptocurrency like Bitcoin, has gone from a technological novelty to an industry with a multitrillion-dollar global market.

BronxCrypto Founder Julio Barrios said many people don’t understand the industry so several years ago he started an educational platform.

“I go in and I host classes and seminars, workshops,” Barrios said. “I host free workshops at libraries all over the Bronx.”

He said the industry has been marred by misunderstanding and bad actors that have led to government leaders approaching it cautiously. 

“That happens to all technologies,” Barrios said. “In the beginning it’s used by criminals. It’s used by people trying to do illegal things and then all of a sudden when people see the potential of like the blockchain, that’s when people get on board.”

Tech industry coalition Chamber of Progress’ Director of Financial Policy Kyle Bligen said the Biden administration has been generally hostile toward crypto, but Democratic presidential nominee Kamala Harris may be changing that.

“We’ve seen a little bit of a tone shift here in recent reporting saying that her surrogates and her close advisors are actually reaching out to industry, trying to ensure that she has a comprehensive understanding of what  cryptocurrency, blockchain technology is and how she can better work with industry in the future,” he said.

Meanwhile, Republican nominee Donald Trump is beginning to make crypto a key component of his campaign. Over the weekend, he spoke at a Bitcoin conference in Nashville, laying out several specific policy plans including creating a strategic reserve similar to what the government has for petroleum. 

“The actual mechanics of that, how that would come to fruition and what the benefit would be for the actual marketplace, that still needs to be bore out but that was the first time that I have ever seen someone on the level of a presidential candidate or someone in the administration ever calling for that type of policy,” Bligen said.

Chamber of Progress said while Republicans, by way of Trump, are embracing the industry they hope Democrats will join in creating a bipartisan regulatory plan. U.S. Sen. Kirsten Gillibrand is one of the party’s leaders on the issue.

“If we want to make the market safe for Americans to participate in, we need basic transparency, accountability, know your customer rules, anti-money laundering rules, safety and soundness rules and I’ve written legislation to provide exactly that,” Gillibrand said.

She said regulating crypto and promoting American innovation should not be partisan. 

“I think cryptocurrency and blockchain isn’t a top five issue for most New Yorkers or most Americans and so our elected leaders haven’t really had the experts within their staff to give them guidance about what regulation is needed,” Gillibrand said.

Chamber of Progress said polling shows pro-crypto voters may prioritize the issue over others in choosing a candidate. Barrios said there needs to be an all hands-on deck approach.

“America has to see this,” Barrios said. “They have to wake up. We cannot let China control most of this Bitcoin mine.”

The organization said more than 20 million Americans either buy, trade or sell cryptocurrency and reference polling claiming more than 52% of Americans nationwide support the technology. 

In a significant legislative move, Russia passed two crypto bills on Tuesday. After their attack on Ukraine, Russia has been cut off from the global payments network. This is affecting their economy. Keeping a full crypto ban domestically, they wish to use crypto payments internationally. Let’s explore how these two bills can help Russia to save their economy.

Crypto for International Trades

In the first three readings, the Russian parliament has passed two crypto bills. The first one will allow Russia to utilize crypto as payment method for international trades. This law would enable the Central bank of Russia to build a pilot project that will explore ways to use cryptocurrency in cross-border transactions. 

The Western sanctions have hampered Russian international transactions. They are experiencing business interruptions in global trading with their key partners like China, UAE and India. Russia faces significant delays in payments coming from international markets. Even though Russia has tried to trade with currencies of its partners, they conduct most payments in either Dollar or Euro to go through the international SWIFT system. This risks secondary sanctions from western regulators on banks in partner countries.

According to the Central bank of Russia, the delay in payments is causing great damage to the economy as this has already caused an 8% decline in Russian import. Russia hopes use of cryptos would help them easily buy the banned goods as cryptocurrency is hard to track. And the use of cryptos for cross border trades will allow certain industries to bypass the regulations. Russia is not the first country to take such steps. Afraid of western regulators, Venezuela has already adopted this path.

Crypto Mining Regulations

The second bill that passed in the lower house of the Russian government will legalize cryptocurrency mining in the country. This bill will mandate the Bank of Russia and the government to mandate regulations for crypto mining. This will be monitored and administered by a federal entity. The aim behind all this is to make crypto mining legal in the country and facilitate tax payments as this will ensure declaration of income.

Looking Ahead

The lower house of the Russian parliament has already passed these bills and will soon send them to the upper house for voting. Once the upper house passes them, they will send them to the President for final approval. This bill also aims to reduce legal risks. They will sell the mined crypto without using Russian information infrastructure. This will exempt these transactions from currency regulations. The bills once approved will take effect from 1st of September, 2024. Western regulators have already imposed sanctions on Russia and these bills will definitely add more bitterness to the whole scenario. One must not forget that even though Russia is working to implement these two crypto bills, they still completely ban the use of cryptocurrency for domestic trades.