The midterm elections in the US have been witnessing a huge amount of spending on cryptocurrency investment.
This has been done as a revival measure against recent heavy losses from the crypto market investment. These cryptocurrency investments in the US elections had been criticized by the Congress party in the house, with the view that direct regulations should be taken for any huge amount of transaction of digital assets.
This move was made by the companies and individuals to back the political candidates who are eager to create a crypto industry-friendly environment in the country. Political parties like Congress are seen to be in the process of working on the registration of crypto commodities and stable coins which will be considered as a cryptocurrency that will be pegged with the US dollar.
The Crypto market has been witnessing a huge amount of doldrums in recent times with the price fluctuation of Bitcoin which has slipped by about 70% from its peak. The recent announcement of Binance to acquire its rival company FTX has also scored the cryptocurrency investment prospect. The founder of FTX Sam Bankman Fried has contributed nearly $40 million to the campaigns in the US elections which is considered to be one of the largest individual donations. Most of the spending and the support by FTX founder was in favor of the democrats in this election.
Ryan Salame, who is the CEO of the FTX subsidiary is considered the 14th biggest individual donor with an amount of approximately $23.6 million in the support of republicans in the elections. He also donated $100,000 to Alex Mooney, the Republican candidate from West Virginia. This investment will be beneficial for influencing the law and policymakers for incorporating these digital assets legislation in the next few months and creating a regularized digital asset moderation in the country.
Cryptocurrency markets Coinbase and Robinhood also spent the crypto reserves for the midterm elections. The crypto exchange platform Coinbase spent $11,000 and Robinhood spent $44,000 respectively.
This investment will be beneficial for influencing the law and the policymakers to question the digital assets legislation in the next few months, as a process of regularized digital asset moderation in the country.
One crypto-related bill is already in the chair of the US Financial Service committee and is working on the bill proceedings for the stablecoins which will be able to evaluate the easiest approach for issuing stablecoins in the country.
The cryptocurrency platform, Circle is demanding to make a stem between helping the companies today in the customer tension aspect. The Digital commodities customer protection act of 2020 will help the authority in the creation of a systematic regulatory framework for cryptocurrency in the country.