Connect with us

Washington

Washington is warming up to crypto faster than even industry insiders expected

Published

on

Washington is warming up to crypto faster than even industry insiders expected


  • Lawmakers on both sides of the aisle are flirting with crypto after years of skepticism.
  • Momentum has picked up even quicker than the industry thought.
  • But doubts linger than Democrats will fully embrace crypto.

It’s not just Donald Trump: Politicians in both parties are increasingly coming around on crypto.

After being staunchly anti-bitcoin, Trump rebranded himself as the crypto candidate last year, and plans to launch a strategic reserve for digital assets. Republicans fell in line.

The surprising part is that Trump’s arch-enemies are also reconsidering their anti-crypto positions. While many Democrats are still skeptical about digital assets, crypto lobbyists in Washington say they’re less antagonistic of the industry than they were previously. The anti-crypto arguments, like the one espoused Elizabeth Warren in January, are going out of style.

Advertisement

“Embrace is too strong a word,” Seth Hertlein, the global head of policy at crypto firm Ledger, said of Democrats’ stance on crypto. “I think there has definitely been a thaw, though.”

After one development this week, “thaw” may actually be an understatement.

On Tuesday, the US Senate resoundingly passed a measure blocking a Biden-era regulation that would require tax reporting by certain decentralized finance firms, which crypto advocates argue would be overbearing. A staggering 18 Democratic senators (19, including an Independent who caucuses with Democrats) voted with Republicans, pushing the final tally to 70 to 28. Hertlein had told BI that he thought only two or three Dems would be on board.

Bitcoin surged 8% in the hours after the initial vote, and other tokens also gained ground. The moves reflected a sentiment shift, and a sign that the crypto world is anticipating more positive developments ahead.

Advertisement

Voters gave a clear verdict on crypto, proponents say

Historians will likely debate for decades why Trump won and Democrats lost in 2024, though the crypto community is convinced that the president’s support for their cause made a difference.

“It was a huge issue in the last election,” Hertlein said of crypto at the Bitcoin Investor Week conference in late February. “And I don’t think that’s lost on anyone in Washington.”

Pro-crypto candidates appeared to outperform during last fall’s elections, including an upset win by Republican Bernie Moreno over Democrat Sherrod Brown, who’s a crypto skeptic.

Many associate crypto with the political right, and not just because Trump is infatuated with it. Stand With Crypto, an advocacy group backed by crypto broker Coinbase, has determined that 256 Republicans in office are supportive of crypto, compared to 89 Democrats.

Advertisement

But that doesn’t have to be the case. In fact, some crypto believers say the Democratic platform, known for its skepticism of Wall Street and big business, is a natural fit for decentralized finance.

“This is not a politicized asset class,” Federico Brokate, the head of the US business at crypto investment product issuer 21Shares, told BI.

He added: “There’s different aspects of the crypto value chain that are happening in traditionally red states or traditionally blue states, as well.”

Perhaps the most pro-crypto politician in DC is Cynthia Lummis, a first-term Republican senator from Wyoming. She was reportedly the first Senator to own bitcoin, and was fiercely critical of the Biden administration regulations that she saw as a threat to the industry.

Advertisement

“Everywhere you looked in the regulatory framework, it was hostile,” Lummis said on stage at the Bitcoin Investor Week conference. “And the hostility was pointed at not just bitcoin, but other digital assets: ethereum, cardano, solana — all this stuff. But bitcoin was caught up in it.”

A Democratic Party representative didn’t respond to Business Insider’s request for comment.

Lummis thinks attitudes toward crypto are now shifting, and she’s looking to have conversations with Democrats and Republicans about how the US should approach this growing industry.

Advertisement

Will Dems get their arms around crypto?

While some believe Democrats are warming up to crypto, others aren’t holding their breath.

Anthony Scaramucci, a major crypto investor and an avowed Trump critic, said at the bitcoin conference that he agreed with Lummis’s assessment about Democrats. Under Biden, he said the party was “really out to lunch” last year when it came to crypto and blockchain technology.

“Mark Cuban, Michael Novogratz, and I last summer descended into the White House, descended into meetings in Washington with senators, policymakers, assistant secretaries to the Treasury,” Scaramucci said at the conference. He said the tech leaders told Biden’s team: “‘What are you guys doing? You’ve got to get off the anti-crypto brigade.’”

This outdated stance is “the best thing that Trump has going for him,” Scaramucci remarked.

Advertisement

“The fact that the Democrats didn’t see that and didn’t see the power of this industry is a sign that they are derelict in their duties right now and aren’t really understanding what’s going on in the marketplace,” he said.

The SkyBridge Capital founder is trying to turn the tide, so that he doesn’t have to begrudgingly give Trump props. He told BI last fall that the 45th president’s win greatly helped his portfolio, even if didn’t want it, and joked at the conference that he should buy Trump a Christmas card.

In Scaramucci’s mind, Democrats were wrong about crypto, rudderless, and pulled off a last-second candidate switcheroo — yet still kept the presidential election close. He thinks they’ll perform better in future elections if they follow Republicans on crypto, but he’s not sure they will.

“The Democrats are not ready to do that,” Scaramucci said of embracing crypto. “I think they’re going to have a lot of problems if they don’t do that. But if I were them, I would be at least neutral on bitcoin.”

Advertisement

In democracies, voters speak, and politicians either adapt accordingly or risk losing their seats. Emboldened crypto supporters are confident their agenda will advance — one way or another.

“Crypto is here to stay,” Hertlein said. He added: “There is a recognition that it can’t just be ignored or killed. It is something that leaders of both parties are going to have to deal with.”





Source link

Advertisement

Washington

Washington passes new AI laws to crack down on misinformation, protect minors

Published

on

Washington passes new AI laws to crack down on misinformation, protect minors


Washington just became the latest state to regulate artificial intelligence.

Under a pair of bills signed by Gov. Bob Ferguson Tuesday, companies like OpenAI and Anthropic will have to include new disclosures in their popular chatbots for Washington users.

Ferguson asked legislators to craft House Bill 1170 to crack down on AI-generated misinformation. When content is substantially modified using generative AI, that information will now have to be traceable using watermarks or metadata. The new law applies to large AI companies more than 1 million monthly subscribers.

Advertisement

“ I’m confident I’m not the only Washingtonian who often sees something on my phone and wondering to myself, ‘Is that AI or is it real?’ And I feel like I’m a reasonably discerning person,” Ferguson said during the bill signing. “It is virtually impossible these days.”

RELATED: WA Gov. Bob Ferguson calls for regulations on AI chatbot companions

House Bill 2225 establishes new guard rails for AI chatbots that act like friends or companions. It applies to services like ChatGPT and Claude, but excludes more narrowly tailored chatbots, like the customer service windows that pop up when visiting a corporate website.

Chatbots that fit the bill will have to disclose to users that they are not human at the start of every conversation, and every three hours in an ongoing chat. The tools will also be barred from pretending to be human in conversation with users.

Advertisement

The rules go further if the user is a minor. Companies that operate chatbots will have to disclose that the tools are not human every hour, rather than every three hours, if the user is under 18. The bill forbids AI companions from having sexually explicit conversations with underage users. It also bans “manipulative engagement techniques.” For example, a chatbot is not allowed to guilt or pressure a minor into staying in a conversation or keeping information from parents.

“AI has incredible potential to transform society,” Ferguson said. “At the same time, of course, there are risks that we must mitigate as a state, especially to young people. So I speak partly as a governor, but also as the father of teenage twins who grapple with this as a lot of parents do every single day.”

Under the law, AI chatbots will not be allowed to encourage or provide information on suicide or self-harm, including eating disorders. The companies behind these tools will be required to come up with a protocol for flagging conversations that reference self-harm and connecting users with mental health services.

The regulations come in the wake of several high-profile instances of teenage suicide following prolonged interactions with AI companions that showed warning signs. Many more AI users of all ages have reported mental health issues and psychosis after heavy use of the technology.

Advertisement



Source link

Continue Reading

Washington

Washington faces Utah, aims to stop 16-game skid

Published

on

Washington faces Utah, aims to stop 16-game skid


Washington Wizards (16-55, 14th in the Eastern Conference) vs. Utah Jazz (21-51, 14th in the Western Conference)

Salt Lake City; Wednesday, 9 p.m. EDT

BOTTOM LINE: Washington heads into the matchup with Utah after losing 16 in a row.

Advertisement

The Jazz have gone 13-24 in home games. Utah ranks second in the Western Conference with 16.6 fast break points per game led by Lauri Markkanen averaging 3.3.

The Wizards are 5-29 in road games. Washington is 9-10 when it has fewer turnovers than its opponents and averages 15.3 turnovers per game.

The Jazz score 117.4 points per game, 6.7 fewer points than the 124.1 the Wizards give up. The Wizards’ 46.1% shooting percentage from the field this season is 2.9 percentage points lower than the Jazz have allowed to their opponents (49.0%).

The teams square off for the second time this season. The Jazz won the last meeting 122-112 on March 6, with Ace Bailey scoring 32 points in the victory.

TOP PERFORMERS: Kyle Filipowski is averaging 10.5 points and 6.9 rebounds for the Jazz. Brice Sensabaugh is averaging 19.9 points over the last 10 games.

Advertisement

Alex Sarr is averaging 16.5 points, 7.4 rebounds and two blocks for the Wizards. Will Riley is averaging 14.4 points over the past 10 games.

LAST 10 GAMES: Jazz: 3-7, averaging 116.4 points, 43.3 rebounds, 27.7 assists, 9.9 steals and 4.4 blocks per game while shooting 45.9% from the field. Their opponents have averaged 122.7 points per game.

Wizards: 0-10, averaging 114.3 points, 37.4 rebounds, 24.5 assists, 6.9 steals and 4.5 blocks per game while shooting 47.1% from the field. Their opponents have averaged 130.6 points.

INJURIES: Jazz: Lauri Markkanen: out (hip), Isaiah Collier: out (hamstring), Keyonte George: out (leg), Cody Williams: out (shoulder), Walker Kessler: out for season (shoulder), Jusuf Nurkic: out for season (nose), Jaren Jackson Jr.: out for season (knee).

Wizards: Anthony Davis: out (finger), Tristan Vukcevic: day to day (back), Cam Whitmore: out for season (shoulder), Alex Sarr: day to day (toe), Tre Johnson: day to day (foot), Kyshawn George: out (elbow), D’Angelo Russell: out (not injury related), Trae Young: out (quad).

Advertisement

___

The Associated Press created this story using technology provided by Data Skrive and data from Sportradar.



Source link

Continue Reading

Washington

Washington sues USDA, alleging billions in funds illegally withheld

Published

on

Washington sues USDA, alleging billions in funds illegally withheld


Washington Attorney General Nick Brown has filed a lawsuit against the U.S. Department of Agriculture, alleging the federal agency is illegally withholding billions of dollars in funding and attempting to force states into compliance with unlawful demands.

The complaint, filed as part of a multistate effort, argues the USDA has threatened to cut off critical funding tied to the Supplemental Nutrition Assistance Program, or SNAP, unless states agree to federal conditions that exceed the agency’s authority, according to the Washington State Office of the Attorney General.

Other critical programs that would be affected include the school lunch program; Special Supplemental Nutrition Program for Women, Infants and Children (WIC); The Emergency Food Assistance Program (TEFAP); and the Volunteer Fire Capacity Program.

Brown’s office said the funding at stake supports the administration of SNAP, a federally funded, state-run program that provides food assistance to millions of low-income Americans. Washington alone receives about $129.5 million annually to administer the program, and disruptions could have “catastrophic” consequences for residents who rely on it, according to the attorney general’s office.

Advertisement

In the lawsuit, the state alleges the USDA is effectively holding those funds “hostage” to compel states to comply with federal directives, including demands tied to program data and administration, according to the complaint and accompanying news release from Brown’s office.

The legal challenge contends the USDA’s actions violate federal law, including constitutional limits and statutory authority governing the SNAP program. The coalition of states argues the federal government cannot condition funding on requirements that were not authorized by Congress, according to the complaint.

Brown said the lawsuit is aimed at protecting both funding and the people who depend on it.

“The rule of law is on our side,” Brown said in a statement, adding that the state is seeking to ensure continued support for vulnerable residents and prevent federal overreach.

According to the attorney general’s office, SNAP serves as a key safety net nationwide, delivering billions of dollars in food assistance. States administer the program but rely on federal funding to operate it.

Advertisement

The lawsuit asks the court to declare the USDA’s actions unlawful and block the agency from withholding funds or imposing conditions the states argue are illegal.

The case is the latest in a series of legal challenges involving SNAP, as states push back on what they describe as unprecedented federal demands tied to the program’s operation and funding, according to the Washington attorney general’s office.



Source link

Continue Reading

Trending