Crypto, Bitcoin Have a New Powerful Ally in Congress

Cryptocurrency doesn’t have too many friends in President Joe Biden’s administration. 

Bitcoin, the world’s most traded cryptocurrency, has been classified as a volatile asset class by all and sundry part of the liberal left.

Bitcoin and other cryptocurrencies, which are also being viewed as the future of money, by some, including the likes of digital payments giant Block  (SQ) – Get Block Inc Class A Report Chief Executive Jack Dorsey, has become increasingly political in Washington.

The Democrats are more likely to support stricter regulation for cryptocurrencies. But in a huge departure from his party stand, Sen. Ron Wyden tried to drum up support for cryptocurrencies among other members and said it was crucial for innovation.

Wyden, who is also chairman of the Senate Finance Committee, told The Financial Times, “There is obviously a debate [about stricter regulation] but I want to be on the side of the innovator. When I think about crypto I think about remittances, or somebody who has a kid 1,000 miles away and wants to get them help in an emergency, rather than going through scores of banks, credit card companies,” he told the FT.

“I keep looking for innovations. That’s where my heart lies,” Wyden added as reported by the FT.

Wyden’s peers like Massachusetts Democratic Senator Elizabeth Warren (D-MA) in the past has called for a crackdown on bitcoin due to its perceived negative effects on the environment. Warren has also said crypto will not help increase financial equality.

Meanwhile, U.S. Congressman Brad Sherman (D-CA) and U.S. Senator Joe Manchin (D-WV) have called for outright bans on bitcoin.

So far, only two Republican senators — Pat Toomey (R., Pa.) and Cynthia Lummis — who sit on the influential Senate Banking Committee have endorsed lesser regulation in this area. Both Toomey and Lummis also own crypto assets.

Most major cryptocurrencies were recently trading lower. Bitcoin was trading near $38,788.93 on Monday down 0.7% in the last 24 hours, according to CoinGecko, a price-tracking website for crypto assets.

Despite its turbulent start to 2022, bitcoin is expected to touch $200,000 in the second half, stock research and market forecasts company FSInsight, operated by Fundstrat Global Advisors said.

Crypto in the Time of Russia Ukraine War 

Some are calling Russia’s invasion of Ukraine the world’s first crypto war. Here’s why. Cryptocurrencies are playing an important role in Ukraine’s struggle against invading Russian forces. Ukrainians have raised tens of millions of dollars in cryptocurrency to help in the fighting. They’re also being used to fund humanitarian efforts in Ukraine.

Separately, Washington is trying to stop Russia from using crypto to bypass Western sanctions. Market watchers and the world’s citizens alike find themselves learning about cryptocurrency, and in particular, bitcoin, for the way it is allowing, and has the potential to continue allowing, Russia’s elite to avoid sanctions.