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Crypto firms spent $134M on 2024 US elections, raising influence concerns

Crypto firms spent $134M on 2024 US elections, raising influence concerns

Cryptocurrency companies spent more than $134 million on the 2024 US elections, fueling concerns about their growing political influence and potential risks to regulatory stability, according to a report by the Center for Political Accountability (CPA).

The growing connection of crypto firms with US politics is raising newfound concerns for regulators, investors and the wider financial system, according to a report released by the Center for Political Accountability (CPA).

Cryptocurrency firms shelled out a cumulative $134 million on the 2024 US elections in “unchecked political spending,” which presents some critical challenges, the March 7 report stated.

“While the companies making these contributions may be seeking a favorable regulatory environment, these political donations further erode public trust and expose companies to legal, reputational, and business risks that cannot be ignored,” the report added.

Cryptocurrency regulation has taken center stage over the past week following a historic executive order from US President Donald Trump to create a Strategic Bitcoin Reserve ahead of the first White House Crypto Summit on March 7.

Fairshake, a political action committee (PAC) backed by major crypto firms including Coinbase, Ripple and Andreessen Horowitz, was one of the largest contributors, spending more than $40 million to support candidates aligned with pro-crypto policies.

Fairshake and affiliated PACs were active in key congressional races, attempting to shape legislation favorable to digital assets.

“As the industry continues to seek influence through vast contributions and opaque financial maneuvers, the risks of instability, regulatory backlash, and public distrust only grow,” the report said.

The influx of crypto money into politics did not go unnoticed by regulators. In August 2024, the consumer advocacy group Public Citizen filed a complaint with the Federal Election Commission (FEC), alleging that Coinbase’s corporate contributions to Fairshake and the Congressional Leadership Fund constituted a violation of federal election law due to their status as a federal contractor.

Coinbase has committed an additional $25 million to Fairshake for the 2026 midterm election cycle.

Coinbase commits $25 million to Fairshake. Source: Coinbase

“The stakes are too high for us to stand on the sidelines, and that’s why we at Coinbase are proud to help do our part,” the company wrote in an October 2024 blog post.

Crypto’s political donations may be necessary for regulatory clarity

Despite the risks highlighted by the report, some regulatory experts see the donations as necessary for advancing more innovation-friendly regulations.

“As someone deeply involved in crypto, I see this spending as necessary for regulatory clarity, crucial for stability and growth,” according to Anndy Lian, author and intergovernmental blockchain expert:

“It seems likely to boost investor confidence by reducing uncertainty, as seen in pro-crypto candidate wins boosting market sentiment, like bitcoin’s post-election high.”

Still, risks, including “regulatory capture,” where the interests of large firms take priority, may present challenges and erode crypto investor trust. Still, this is part of the organic growth of the emerging crypto industry, Lian said, adding:

“The crypto community’s transparency and decentralization might mitigate this, ensuring fair regulations. While controversial, I don’t find it problematic, viewing it as the industry’s maturation, though public backlash could destabilize politics if seen as buying favor.”

The debate over crypto’s role in politics follows the high-profile collapse of the Libra (LIBRA) token, a memecoin endorsed by Argentine President Javier Milei. The project’s insiders allegedly siphoned over $107 million worth of liquidity in a rug pull, triggering a 94% price collapse within hours and wiping out $4 billion.

Over 100 governmental fraud complaints have been opened in Argentina since the Libra memecoin’s scandal, illustrating the risks of a country’s executive branch promoting “any kind of unregulated security,” the CPA’s report states.

 

Source: https://cointelegraph.com/news/crypto-firms-134m-election-spending-regulatory-concerns

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

US economic fears and Bitcoin: Saylor’s US$16T reserve plan

US economic fears and Bitcoin: Saylor’s US$16T reserve plan

As I reflect on the complex interplay of global financial dynamics, US economic indicators, and the bold proposal for a US Strategic Bitcoin Reserve championed by Michael Saylor, I find myself intrigued and cautious about the implications for investors, markets, and the broader economy.

The recent pullback in global risk sentiment, driven by concerns over the US economy’s health, paints a picture of uncertainty that resonates deeply with the volatile movements in Bitcoin and other asset classes. Treasury yields have been falling across all maturities since mid-January as investors flock to the safety of fixed-income assets, signalling a shift toward risk aversion, with havens like the yen and Swiss franc gaining ground.

At the same time, the US dollar experiences its longest losing streak. This backdrop of faltering confidence in US economic outperformance and mixed signals from employment data—non-farm payrolls rising by 151,000 in February but the unemployment rate ticking up to 4.1 per cent—creates a fragile foundation for risk assets, including cryptocurrencies.

The data from China further complicates the global economic outlook. Consumer inflation falling below zero for the first time in 13 months, amid persistent deflationary pressures, underscores weakening demand and raises concerns about the health of the world’s second-largest economy. This, in turn, has a ripple effect on commodities like Brent crude, which hovers around US$70 per barrel despite a modest 1.3 per cent uptick, as weak Chinese economic data dampens oil demand expectations.

Meanwhile, US equity markets show resilience, with the MSCI US index edging up 0.5 per cent and Utilities outperforming at 1.9 per cent. Still, the slight rise in US Treasury yields—10-year at 4.30 per cent and 2-year at 4.00 per cent—and a continued decline in the U.S. Dollar Index by 0.2 per cent suggest lingering growth worries.

Gold, maintaining upward momentum toward US$3,000 per ounce despite a minor 0.1 per cent dip, reflects its role as a safe-haven asset amid this uncertainty. The mixed performance of Asian equities and the implied 0.4 per cent lower opening for US stock index futures further highlight the cautious mood permeating global markets.

Against this backdrop, Michael Saylor’s proposal for the US government to acquire 25 per cent of Bitcoin’s total supply—approximately 5.3 million BTC—by 2035 to establish a Strategic Bitcoin Reserve feels both visionary and audacious. Presented at the White House Crypto Summit, where President Donald Trump endorsed a “never sell your Bitcoin” policy and issued an executive order prohibiting the sale of Bitcoin held in reserve, Saylor’s plan suggests a systematic acquisition of 5-25 per cent of Bitcoin’s daily supply between 2025 and 2035.

By that time, with 99 per cent of Bitcoin’s 21 million total supply already issued, the US would hold a significant portion of the cryptocurrency, potentially generating US$16 trillion to US$81 trillion by 2045, according to Saylor’s projections. He argues this could help reduce the national debt, which, as noted in recent World Bank reports, has ballooned globally due to crisis responses like those during the COVID-19 pandemic, raising concerns about sustainability, especially in emerging economies.

From my perspective, Saylor’s proposal is a double-edged sword. On the one hand, it could catalyse broader institutional adoption of Bitcoin, as governments and corporations might follow the US lead, legitimising cryptocurrencies in mainstream finance. The executive order’s prohibition on selling Bitcoin could stabilise its long-term value by reducing supply pressure, potentially driving prices higher as demand grows.

This aligns with Saylor’s vision of Bitcoin as a “property in cyberspace,” akin to strategic reserves of gold, oil, or grain, as historical examples cited by Saylor—like the US Strategic Petroleum Reserve established in 1975—demonstrate.

The idea of the US asserting geopolitical influence through digital asset holdings, as suggested in reports from CoinDesk and Reuters, could position the country as a leader in setting global crypto standards, fostering innovation, and countering the dominance of other nations or entities in the digital economy.

However, the practicality and risks of this plan are significant. Bitcoin’s price volatility, evidenced by its recent 5 per cent drop to around US$80,000 following Trump’s executive order, underscores the challenges of integrating it into a national strategic reserve. As noted in the Bitcoin price decline, the disappointment among investors suggests skepticism about the reserve’s immediate impact, especially amid broader market uncertainty.

Bitcoin’s history of sharp corrections—like the 30 per cent drop from January 2025 levels, as mentioned in X posts from analysts like @JacobKinge—highlights its immaturity as a stable store of value compared to traditional assets. The crypto market’s “Extreme Fear” sentiment, reflected in the Fear & Greed Index dropping to levels seen during the 2020 COVID-19 crash and the 2022 market bottom, as reported by @inmortalcrypto and @APompliano, indicates that investor confidence is fragile, potentially exacerbated by large government purchases that could distort market dynamics.

Moreover, the logistics of acquiring such a substantial portion of Bitcoin’s supply—up to 25 per cent—over a decade are daunting. With a current market cap of over US$1.6 trillion (based on a US$80,000 price per BTC), purchasing 5.3 million BTC could cost upwards of US$424 billion, though Saylor’s gradual approach might mitigate price inflation.

However, as noted in Reuters’ coverage, large-scale government purchases could outsize Bitcoin’s price, especially given its relatively low trading volume compared to traditional markets. The inclusion of other cryptocurrencies like Ethereum, as Trump hinted, adds further complexity, as smaller tokens like Cardano and XRP have even lower liquidity, potentially amplifying volatility. Cybersecurity risks, as mentioned in web analyses, also loom large, given Bitcoin wallets’ vulnerability to hacks, raising questions about the feasibility of securing such a reserve.

The broader economic context complicates matters further. The US government’s fiscal position, with rising national debt concerns outlined in the World Development Report 2022 and U.S. News articles on potential 2025 stock market risks, suggests that allocating billions to Bitcoin could be contentious.

Critics might argue that funds could be better directed toward infrastructure and social programs or to stabilise traditional markets amid faltering growth and persistent inflation, which remains above the Federal Reserve’s target of 2 per cent, at 3 per cent, according to US News. The Fed’s reluctance to cut rates significantly, as noted in US Bank’s analysis of the yield curve, and the potential for recession signals—like an inverted yield curve, though currently fading—could heighten opposition to such a speculative investment.

On the positive side, Saylor’s comparison to historical US strategic purchases—like the Louisiana Purchase or Alaska acquisition, which yielded massive long-term returns—offers a compelling narrative. If Bitcoin follows a trajectory similar to its 2017 cycle, as suggested by @rovercrc on X, it could see exponential growth, justifying the reserve’s creation.

The Trump administration’s pro-crypto stance, reinforced by the White House Crypto Summit and Saylor’s participation, could also attract institutional investors, boosting market confidence and regulatory clarity, as seen in the proposed Lummis bill for a Bitcoin reserve. This could align with broader trends of digital asset integration, as evidenced by El Salvador’s past Bitcoin adoption. However, its recent project cessation highlights the risks of over-reliance on crypto.

Ultimately, I see Saylor’s proposal as a high-stakes gamble with transformative potential but significant risks. The current market environment—marked by US economic uncertainty, global deflationary pressures, and Bitcoin’s volatility—suggests caution is warranted.

While the idea of a Strategic Bitcoin Reserve could position the US as a crypto leader and generate enormous returns, it could also strain public finances, destabilise markets, and expose the government to unprecedented risks. I’d advocate for thorough public debate, rigorous economic modelling, and pilot programs to test the feasibility before committing to such an ambitious plan. The recent Bitcoin price drop to US$80,000, coupled with investor disappointment, serves as a stark reminder that crypto’s promise is tempered by its unpredictability, making Saylor’s vision both inspiring and, at this moment, daunting.

 

 

Source: https://e27.co/us-economic-fears-and-bitcoin-saylors-us16t-reserve-plan-20250310/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j

Global economic shake-up: Bitcoin hits US$90K, German bonds slide

Global economic shake-up: Bitcoin hits US$90K, German bonds slide

Same thing. I’ve been closely following the whirlwind of events that unfolded on Wednesday, March 6, 2025.

The global risk sentiment has undeniably taken a turn for the better, and the epicentre of this shift is Europe—specifically Germany—where an audacious fiscal proposal has sent shockwaves through the markets. German bunds, typically seen as the bedrock of stability in European fixed-income markets, are on track for their worst sell-off since 1990.

This isn’t just a blip; it’s a seismic event driven by Chancellor Friedrich Merz’s bold pledge to channel hundreds of billions of euros into defense and infrastructure, with a “whatever it takes” stance that echoes Mario Draghi’s famous 2012 vow to save the euro. The sheer scale of this proposal has caught market participants off guard, and the upside surprise has fueled a mix of optimism and unease.

Let’s unpack what’s happening in Europe first. The German bund sell-off reflects a dramatic repricing of risk. Yields on 10-year bunds spiked to 2.69 per cent, a level that signals investors are demanding higher returns to hold German debt amid this unprecedented fiscal expansion. The debt brake—Germany’s constitutional limit on borrowing—seems to have been tossed out the window, a move that’s both a departure from Berlin’s long-standing fiscal prudence and a gamble on future growth.

Posts on X suggest bond vigilantes, those hawkish investors who punish profligate governments with higher yields, are already circling, sensing fragility rather than strength in this shift. Yet, the equity markets are telling a different story. The MSCI Europe index climbed 0.8 per cent, buoyed by the prospect of massive government spending lifting economic activity.

The euro, too, has flexed its muscles, with EUR/USD soaring to a high of 1.0796 before settling at 1.0790—a robust 1.56 per cent gain. This currency surge reflects confidence in Europe’s economic prospects, at least for now, though the spectre of inflation and debt sustainability looms large.

Across the Atlantic, the US markets are enjoying a reprieve of their own, thanks to President Trump’s decision to delay automotive tariffs on Canada and Mexico by a month. This move, coupled with hints of exemptions for certain agricultural products, has dialed back fears of an all-out trade war that had been simmering since Trump’s re-election.

It’s a pragmatic step—autos and agriculture are deeply integrated across North America, and tariffs would’ve hit US consumers as much as they’d hurt exporters in Canada and Mexico. European carmakers, already reeling from earlier tariff threats, saw their shares stabilise, though the damage from Tuesday’s sell-off lingers. On the data front, the ISM Services Index came in stronger than expected, with a notable uptick in employment growth.

In my opinion, this is a reassuring signal that the US economy isn’t teetering on the edge of recession, though all eyes are now on Friday’s payrolls report for confirmation. The MSCI US index rose 1.1 per cent, with the Materials sector leading the charge at 2.8 per cent, likely reflecting optimism about infrastructure spending and industrial demand.

Bond markets in the US are also stirring. The 10-year Treasury yield climbed 7 basis points to 4.28 per cent, while the 2-year yield ticked up nearly 5 basis points to 4.00 per cent. This steepening yield curve suggests investors are betting on stronger growth and, potentially, stickier inflation down the road.

Commodities, meanwhile, are a mixed bag. Gold eked out a 0.1 per cent gain, propped up by a softer dollar, but Brent crude slid 2.5 per cent for a third straight session. OPEC+’s plan to ramp up output in April is weighing on oil prices, despite the improving risk sentiment elsewhere. It’s a reminder that not every corner of the market is riding the same wave of optimism.

Turning to Asia, China’s National People’s Congress (NPC) has set an ambitious 5 per cent growth target for 2025, a number that’s raised eyebrows and sparked hopes of more stimulus. The Hang Seng Index in Hong Kong surged 2.8 per cent on Wednesday and looks poised for further gains today, Thursday, March 6.

Asian equity indices are mostly in the green, reflecting a broader appetite for risk. China’s policymakers seem determined to turn the tide after years of economic headwinds, and markets are lapping it up—for now. Whether Beijing can deliver remains an open question, but the mood is unmistakably upbeat. US equity index futures, however, are pointing to a softer open, suggesting some profit-taking or caution after Wednesday’s rally.

Then there’s the crypto saga, which is grabbing headlines of its own. Bitcoin staged a remarkable 8 per cent surge, reclaiming the US$90,000 level after dipping below US$80,000 just five days ago. This rollercoaster ride is fuelled by speculation around Trump’s rumoured US crypto reserve plan—a bold idea that’s got the market buzzing. Technical indicators like the Directional Movement Index (DMI) and Ichimoku Cloud are flashing bullish signals, hinting that buyers are firmly in the driver’s seat.

The US$100,000 mark is tantalisingly close, but volatility is Bitcoin’s middle name, and the upcoming White House Crypto Summit could either propel it higher or spark a pullback. Speaking of the summit, Cardano’s Charles Hoskinson found himself snubbed from the invite list, though he’s brushing it off, claiming he’s still a behind-the-scenes player in shaping US crypto policy.

Michael Saylor, meanwhile, is doubling down on Bitcoin as the “only neutral asset” for a US reserve, dismissing XRP as a mere digital token. Ethereum, too, is on the mend, climbing from its US$2,000 support zone and eyeing a break above US$2,350. A rising channel on the hourly chart suggests momentum is building, but resistance at US$2,275 and $2,350 will test its mettle.

So, what’s my take on all this? I’m struck by the sheer pace of these developments. Europe’s fiscal gambit is a game-changer—Germany’s shift from fiscal hawk to big spender could jolt the continent out of its economic doldrums, but it’s a high-stakes bet. The bund sell-off is a warning shot; if yields keep climbing, borrowing costs could choke off the very growth Merz is chasing.

Yet, the equity rally and euro’s strength suggest markets are willing to give it a chance. In the US, Trump’s tariff delay is a savvy move—it buys time and cools trade tensions, though it’s hardly a resolution. The economy looks resilient, but the payrolls report will be the real tell. Asia’s optimism hinges on China’s ability to follow through, and crypto’s wild ride is a microcosm of the broader risk-on mood.

If I had to pick a standout, it’s Germany’s bold pivot. It’s shaking up Europe in a way we haven’t seen in decades, and the ripple effects—higher yields, a stronger euro, buoyant stocks—could redefine the region’s role in the global economy. But risks abound: inflation, debt overload, and geopolitical uncertainty could derail this fragile recovery. For now, though, the world’s investors are riding the wave, and it’s one heck of a story to watch unfold.

 

 

Source: https://e27.co/global-economic-shake-up-bitcoin-hits-us90k-german-bonds-slide-20250306/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

www.anndy.com
j j j