The Cryptocurrency Industry Increases Donations for U.S. Midterms
By Space Coast Daily // May 15, 2022
Businesses and business leaders, particularly those involved with finance and the markets, play a part in mid-term elections. All business and financial sectors have regulatory and legislative interests, so they back preferred candidates. Everyone from technology to energy to aviation executives and investors lobbies and contribute to campaigns.
In a somewhat surprising move, representatives from the cryptocurrency industry intend to make their moves during the upcoming U.S. mid-term election.
Crypto Companies and the Law
When cryptocurrency first emerged, some were hesitant to explore its potential benefits. Over time, more people became comfortable with Bitcoin and other assets, and now millions of people trade billions of dollars in the market. Of course, governments took note of the trading, with many officials wondering if traders were paying any taxes on their gains. Eventually, U.S. Internal Revenue Service tax forms asked filers to acknowledge whether they traded in cryptocurrency.
Also, governments in the United States and elsewhere feel concerned about the anonymous nature of some cryptocurrency trades. Not every government official sees cryptocurrency exchange apps like OKX as an economic positive. However, crypto companies have their proponents. In Colorado, the state regulators approved Bitcoin payments for tax debts, a significant move.
Regulatory changes could make life challenging for both traders and cryptocurrency enterprises. Regulations come from government agencies, and hostile lawmakers and regulators could make things troubling for crypto professionals and fans. Ultimately, the industry’s insiders find themselves taking a more active political role since politics will affect them.
Involvement in the Mid-Term Elections
Making campaign donations ranks among the most straightforward ways anyone could become involved with elections. Donors could give money directly to politicians or Political Action Committees (PACs). It seems cryptocurrency industry professionals have intentions to become far more actively involved in 2022 than in previous years.
12 organizations with strong ties to the cryptocurrency industry increased their 2021 donations by 1,200% over 2019. Expect possibly even higher numbers in 2022, a high-profile election year. 2020 saw 12 crypto-oriented companies donate a combined $1.7 million, a small sum in comparison to what a collective of Fortune 500 companies might donate, but the crypto industry is far smaller than other sectors.
Worries may exist among cryptocurrency industry insiders about possible restrictions and regulatory action. Governments don’t always appreciate how cryptocurrency may circumvent laws and rules that pertain to other financial ventures. Of course, there are also concerns about tax evasion and underreporting. Business owners and entrepreneurs who made significant time and money investments to set up cryptocurrency endeavors don’t likely wish to see their ventures suffer under excessive regulations. Therefore, becoming involved in the upcoming midterm elections makes sense.
Political Growth and Clout
As the cryptocurrency industry grows, more influential figures and leaders will emerge. Expect them to continue to take prominent roles in the United States’ elections both on the local and national levels. Doing so would probably make wise business sense. Having a seat at the regulatory table or maintaining some influence among politicians could save the industry from unneeded and unwanted headaches.