US crypto sector should prove powerful Republican ally

Significance

The industry wants to influence how it is regulated and, in response, both parties are claiming they can overcome the inability of Congress to pass legislation allowing companies in the sector greater scope to pursue untrammelled innovation.

Impacts

• Crypto-backed Super PACs will support pro-crypto candidates running against crypto-sceptics, regardless of party.
• Crypto money deployed in Ohio to defeat Democratic Senate Banking Committee Chair Sherrod Brown could change control of the Senate.
• In the absence of legislation, a Supreme Court case may be needed to exempt crypto from the Howey Test of what constitutes a security.
• A second Trump administration could hinder or halt low-key Federal Reserve moves to develop a US central bank digital currency.