Cryptocurrency Investment in US Election

Cryptocurrencies have become a major force not only in the financial sector but also in the political landscape. As digital assets continue to grow in influence, they are shaping policies and economies across the globe. This article explores recent developments in the cryptocurrency space, particularly focusing on its impact on US elections and the expected growth of the crypto market in Russia.

Cryptocurrency's Role in the 2024 US Election

The top cryptocurrency-focused political action committee (PAC) has spent $131 million during the 2024 election cycle to support lawmakers with favorable views on cryptocurrencies. At the same time, wealthy crypto investors have contributed millions to support Donald Trump's re-election campaign.

These crypto backers are aiming to influence government policies related to their industry. They hope Donald Trump will appoint a Securities and Exchange Commission (SEC) chair who is more supportive of cryptocurrencies. Such an appointment could lead to the development of clearer cryptocurrency regulations, benefiting investors and crypto businesses alike.

Changing Leadership at the SEC and Crypto Regulations

The new SEC chair would replace Gary Gensler, whose actions during President Biden's administration have been criticized by many crypto leaders for their regulatory scrutiny of the industry. Additionally, crypto advocacy groups are urging Congress to establish new cryptocurrency regulations that would better integrate cryptocurrencies into the broader US financial system, which could benefit a wide range of crypto users, from institutional investors to individual traders.

Crypto-Friendly Candidates in Congress and Their Impact on Crypto Regulations

Many believe the crypto sector will experience significant growth once the new Congress takes office in 2025. According to a tracker maintained by the Stand with Crypto group, around 274 crypto-friendly candidates have secured seats in the House of Representatives, while 20 have advanced to the Senate during this election cycle. These crypto-friendly lawmakers are expected to push for legislation that supports blockchain technology and reduces regulatory barriers for cryptocurrencies.

PACs have invested heavily in supporting both Republicans and key Democrats, including Elissa Slotkin of Michigan and Ruben Gallego of Arizona, both of whom secured open Senate seats. Their support could help create a regulatory environment that encourages innovation and growth within the US cryptocurrency market.

Recovery of the Cryptocurrency Industry's Influence After the FTX Collapse

The cryptocurrency industry's bipartisan influence has seen significant recovery in 2023, following the collapse of the FTX cryptocurrency exchange in 2022. The collapse of FTX was a major setback, leading to increased scrutiny of the crypto sector. In the aftermath, lawmakers quickly returned campaign donations received from the company's founder, Sam Bankman-Fried.

Bankman-Fried is currently serving a 25-year sentence for defrauding customers and investors. Despite these setbacks, the recent election results have injected renewed optimism into the market. After Trump's victory, Bitcoin (BTC) surged to an all-time high, as investors anticipated more crypto-supportive policies from his administration.

"Crypto is a political force. As a result of the recent election, we will have the most crypto-friendly Congress ever elected and the most crypto-friendly committee in power," said Kristin Smith, CEO of the Blockchain Association, which has 98 members. Such developments are expected to bring more regulatory clarity, which is critical for the future of crypto adoption.

Crypto Market Expected to Rise in Russia

Russia is preparing for major growth in its cryptocurrency market, which is expected to reach 10 trillion rubles (about $101.3 billion) by 2026. Anatoly Popov, Vice President of Sberbank, stated that by 2024, the value of crypto assets in Russia had already exceeded 500 billion rubles, showing substantial growth. This growth is fueled by increasing interest from both institutional and retail investors, as well as a shift in governmental attitudes towards digital assets.

Predictions for the Russian Crypto Market

Popov predicted that by the end of 2025, the value of virtual assets in Russia would reach 3 trillion rubles. Cryptocurrencies, securities, and other digital financial products are all considered virtual financial assets under Russian law. This legal framework is expected to provide a more stable environment for crypto investors and foster the growth of blockchain-based projects.

It is important to note that these assets are distinct from the digital ruble, which is a type of virtual currency controlled by the Central Bank of Russia. The digital ruble, unlike decentralized cryptocurrencies, is fully regulated and provides a state-backed alternative for digital transactions.

The Digital Ruble and Its Role in Russia's Financial System

The distinction between virtual financial assets and the digital ruble provides investors with a broader range of options. This differentiation strengthens Russia's role in the global fintech market by offering both state-backed stability and the innovation potential of decentralized cryptocurrencies.

As a central bank digital currency (CBDC), the digital ruble is designed to work alongside cryptocurrencies, providing a stable and regulated option for everyday transactions. This creates numerous opportunities for seamless transactions, appealing to many crypto users in the country. The coexistence of CBDC and decentralized assets could help Russia leverage both stability and innovation to drive economic growth.

Global Momentum of the Cryptocurrency Industry in the US and Russia

The cryptocurrency industry is showing strong momentum globally, particularly in the US and Russia. Both countries are expected to significantly shape the future of virtual finance, with the US focusing on cryptocurrency policy changes and Russia planning substantial expansion of its virtual assets. In the US, regulatory clarity and political support could accelerate institutional adoption, while Russia's approach emphasizes both a state-backed CBDC and the broader use of blockchain technology.

Conclusion: The Future of Cryptocurrencies

In conclusion, the cryptocurrency sector continues to assert its influence across both political and financial domains, with significant developments in the United States and Russia. As cryptocurrency regulations evolve and markets expand, the role of digital assets in shaping economic policies and providing new investment opportunities will only grow stronger. Despite the setbacks, such as the collapse of FTX, the future looks promising for cryptocurrencies as they gain more recognition and integration into mainstream financial systems. This is an exciting time for cryptocurrencies, and the decisions made today will lay the groundwork for the future of finance worldwide.

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