Related: Bitcoin risks deeper drop if $75K support fails amid macro concernsCrypto’s political donations may be necessary for regulatory clarityDespite 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.
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.
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.Fairshake donations.
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Author / Journalist: Cointelegraph by Zoltan Vardai
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