Crypto Giants Flood U.S. Elections with Record Donations, Sparking Regulatory Concerns_blog

23 Aug, 2024

Crypto Giants Flood U.S. Elections with Record Donations, Sparking Regulatory Concerns

In the 2024 U.S. presidential election, major cryptocurrency companies like Coinbase and Ripple have become influential players in political financing. These companies have donated nearly $99 million to super political action committees (PACs), fueling fears that such contributions could sway lawmakers to weaken crypto regulations, putting consumer protections at risk.

Crypto Industry's Financial Power Surge

Public Citizen, a consumer advocacy group, recently issued a report highlighting the impact of these donations on U.S. elections. The report shows that in 2024, crypto firms contributed 48% of the $248 million in corporate donations, with the Fairshake PAC receiving $202.9 million in contributions—over half of which came from the crypto sector.

Impact of Citizens United on Crypto Donations

Since the 2010 Citizens United v. Federal Election Commission ruling, corporations have been permitted to donate unlimited funds to super PACs, provided they don't coordinate directly with candidates' campaigns. The crypto sector has taken full advantage of this ruling, contributing $129 million in the last three election cycles, which represents 15% of all corporate donations since the ruling.

Controversy Over Crypto Contributions

The influx of crypto money into politics has sparked controversy, particularly within the tech community. Prominent Democratic donor Ron Conway severed ties with crypto PACs after learning of a $12 million pledge to defeat Senator Sherrod Brown (D-OH). This move reflects growing concerns over the influence of "Big Crypto" in shaping U.S. regulations.

Future Implications for Crypto Regulation

As the 2024 election approaches, the increasing financial influence of the crypto industry raises important questions about the future of regulation. Will lawmakers prioritize the interests of the crypto sector over consumer protection, or will there be a push for stricter oversight to ensure public welfare?

The growing clout of the crypto industry in U.S. politics is a trend to watch closely, as it may shape the regulatory landscape for years to come.

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26 Aug, 2024

Stablecoin Market Cap Hits New All-Time High, Beating Early 2022 Record

Quick Take① The total stablecoin market cap, excluding algorithmic stablecoins, grew 0.8% over the past seven days to around $168.1 billion, according to DefiLlama data.② USDT takes up about 70% of the entire stablecoin market cap.Stablecoin market cap hits new all-time high, beating early 2022 recordThe total stablecoin market capitalization, excluding algorithmic stablecoins, hit its all-time high over the weekend, DefiLlama data shows. Stablecoin’s market cap expanded by 0.8% over the past week to over $168.1 billion, surpassing the previous peak in March 2022 of around $167 billion.The market cap hit a low of around $122 billion in October as the market cap started to dwindle a few months after the March 2022 high. Since the beginning of 2024, the stablecoin market cap has continued to grow, according to DefiLlama data.A rising stablecoin market cap may indicate that crypto is attracting more money from institutional investors, Rachael Lucas, a crypto analyst of BTCMarkets, told The Block.“Traditionally, demand for stability in uncertain market conditions has driven investors towards stablecoins as a safe haven,” Lucas said. “Alternatively, the increase in the stablecoin market cap could reflect growing confidence in the crypto market, especially from institutional investors.” Lucas added that stablecoins are being increasingly utilized by institutional investors as a bridge between TradFi and crypto. “This trend underscores a broader shift towards integrating stable digital assets into both trading strategies and long-term portfolios.”Meanwhile, USDT, the largest stablecoin, has seen its market cap grow about 28% this year, from $91.68 billion at the beginning of this year to $117.84 billion today. USDT now accounts for about 70% of the total market capitalization, according to DefiLlama data.Circle’s USDC, despite some fluctuations in market cap, has also experienced an upward trend in 2024, growing from $23.8 billion in early January to $34.4 billion today.

21 Aug, 2024

Stablecoin Market Expands: $2.21B Uptick in 8 Days Fueled by Tether's Growth Spurt

The stablecoin market has been picking up speed lately, and between Aug. 9 and Aug. 18, 2024, it expanded by $2.21 billion. During this period, Tether’s supply ballooned by an additional 1.26 billion USDT.Stablecoin Boom: $2.21B Growth Driven by Tether and PYUSDBetween Aug. 9 and Aug. 18, 2024, the stablecoin economy expanded by $2.21 billion, building on the $1.53 billion growth seen from Aug. 6 to Aug. 9. Tether (USDT) claimed a dominant 57.01% of that growth, adding 1.26 billion USDT to its supply over the eight-day span. With this boost, USDT’s $116.88 billion market cap now makes up 69.40% of the $168.42 billion stablecoin market.Over the last 30 days, USDT grew by 2.9%, while usd coin (USDC) saw a 3.3% increase. Meanwhile, Makerdao’s DAI slipped by 1%, and Ethena’s USDE dropped by 9.2% since July 19, struggling to maintain a $3 billion market cap. First Digital’s FDUSD, however, enjoyed a 17.2% rise in supply over the same period. Just two days ago, Media highlighted how Paypal’s PYUSD overtook Tron’s USDD to become the sixth-largest dollar-pegged coin.At that time, PYUSD’s supply had grown by $140.9 million in just ten days, with most of it minted on Solana. As of Aug. 16, PYUSD’s market cap stood at $791.9 million, and by Aug. 18, it reached $828.86 million, marking a $36.96 million increase in just 48 hours. Since July 19, PYUSD’s supply has surged by 41.5%, while Tron’s USDD edged up by only 0.7%. Similarly, frax dollar (FRAX) and true usd (TUSD) has remained stagnant over the past month.Alchemix usd (ALUSD) saw a modest 1.1% rise this month, while Aave’s stablecoin GHO climbed by 19% since July 19. On the other hand, Paxos’ pax dollar (USDP) decreased by 6.5%, and gemini dollar (GUSD) fell by 6.9% over the 30-day period. Once again, as with the previous week, the primary drivers of growth have been increases in the supplies of USDT and PYUSD, while others like USDC and FDUSD experienced only slight upticks.