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What is the significance of the US midterm elections for cryptocurrency?

As the focus rages on the US midterm elections, individuals and companies from all sectors, disciplines and industries are eager to know what lies ahead.

For the cryptocurrency industry, those hopes and expectations lie in the process of forming Congress next year, with an interest in creating a detailed regulatory framework for the industry in the United States, where it is gaining momentum.

Ambitions to organize the sector
Early in the year, crypto enthusiasts expected regulators to put in place clear regulations, and while the sector saw something close to that, actions fell somewhat short of expectations.

The crypto sector has seen positive signs of regulation with proposals such as Senator Loomis and Gillibrand’s bill.

The executive order issued by US President Joe Biden in March also contributed to the expectations of cryptocurrency regulation in the United States.

However, as of now, there is still no clear policy regarding the handling of digital assets in the United States.

The crypto community has faced further difficulties due to confusing and often contradictory oversight from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission.

Analysts expect the Republican majority to return to the House of Representatives, although the White House is expected to remain Democratic for at least another two years, according to CNBC.

The Republican majority could benefit from the crypto industry, and they are its most ardent advocate, urging lawmakers to pass more laws supporting the industry.

In addition, the Republican-controlled Congress may pressure the Securities and Exchange Commission to moderate their aggressive pursuits in the sector.

However, it should be noted that, according to reports, both Democrats and Republicans support digital assets, so the crypto industry is eagerly watching US legislative affairs.

Cryptocurrency donations
The run-up to this year’s midterm elections has seen massive crypto donations totaling more than $80 million, according to reports, and FTX founder and CEO Sam Bankman Fred currently ranks as the fourth largest individual contributor.

Despite this large amount, donations made by the crypto sector in September have decreased significantly since June, when the sector donated $10.4 million to campaigns.

In July, the numbers more than halved to $4.4 million, before peaking slightly at $5.1 million, while contributions in September and October were $3.9 million and $600,000, respectively.

The general decline in cryptocurrency price and market capitalization this year is likely to be a major factor in this trend.

While those who made it past the primaries thanks to these donations have yet to express tangible support for the industry, contributions from the crypto community still have time to make an impact.

The cryptocurrency community has a lot to look forward to.

rising pressure
Advocates of the crypto sector are already showing their support for the industry and pushing for clear and strong regulations.

Lawmakers such as Loomis, Gillibrand and Pat Tommy are among those pushing for cryptocurrencies this year, even though Tommy is on the cusp of retirement.

With promising indications from Congress this year, there are high hopes that the upcoming iteration will reveal the regulatory steps for the crypto sector, with many new hopefuls vying for mid-term positions this year.

Based on the assessments, 28 of the top 50 cryptocurrency companies are located in the United States, a country that lacks clear regulatory guidelines on digital assets.

Therefore, the crypto community is looking forward to the upcoming midterm elections with the hope that a new framework will be implemented soon.

According to a Pew Research Center data report, men under the age of 30 are often the most attracted to digital assets.

Statistics show that young people are not big voters in the United States, so politicians who talk about cryptocurrency can risk alienating older voters, worried about financial developments and the perceived risks posed by the sector.

For this reason, cryptocurrencies still have a long way to go before they can be considered a major electoral point.


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