Cryptocurrency community influences US election race

The crypto community is made up of millions of people, and these enthusiasts are ready to apply their strength in the upcoming US elections. The crypto industry has won several victories this month that have highlighted its huge influence on Washington’s politics

According to ARK Invest CEO Katie Wood, cryptocurrencies have become a campaign issue in the US, attributing the sudden approval of ethereum exchange funds (ETFs) to this political shift.

«Speaking at the Consensus 2024 conference, Wood said: Everyone was saying that ETFs would not be approved. They were definitely not going to approve them. If they were approved in the usual way, there would be questions from the SEC. But nobody received questions from the SEC beforehand».

Wood, who is also the CFO of ARK Invest, noted that the same mood has been created in the House of Representatives around the Financial Innovation and Technology for the 21st Century Act (FIT21). The law was passed last week with bipartisan support, which is indicative of its impact in an election year.

Another important factor, according to Wood, was the support of Bitcoin and cryptocurrency by former US president Donald Trump.

«Last week he announced that he will accept donations for the election campaign in cryptocurrencies», she said.

The China expert from the Council on International Relations, Zoya Liu, wrote this week that China’s strategy to develop an alternative financial system is more defensive than offensive, and now Beijing intends to minimize any impact of radical Western sanctions in extreme situations, such as war over Taiwan.

Simply expanding the use of the renminbi in trade would be much easier than raising its status as an international reserve currency.

Like Russia, China, along with many other countries of the «global South», is seeking to diversify its assets and reduce the dominance of the US dollar because of fears of exclusion from the dollar-based global financial system if sanctions are imposed.

The dollar has not yet been replaced. Primarily because of the obstacle of China’s use of capital controls for its own financial stability. This means that Beijing controls how much foreign money can enter and exit the country’s economy, and consequently affects the exchange rate of foreign currencies.

The yuan’s great advantage is that it is already a leading trading partner for more than 120 countries, and the authorities are willing to facilitate exports by offering currency swaps.