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- Bloomberg’s editorial also fails to address the particular trends of the legal perspective on cryptocurrencies in the United States and internationally.
- Critics have described the tokens that assets are often sold for as having no tangible utility, while the usefulness of cryptocurrencies cannot be denied.
- Crypto industry lobbying is not just pursuing self-interests; it is also about the lack of legal certainty, pointing to a gap in the legislation.
Bloomberg’s recent editorial, which warns about the crypto industry’s influence on US election spending, has caused quite a stir. The article “Harris and Trump Shouldn’t Pander to Crypto Lobby” shares the same opinion, stating that the presidential candidates are too friendly with the crypto industry, which donated millions to the campaigns. However, this criticism ignores why the crypto industry participates in political lobbying and what it aspires to accomplish.
The Overlooked Stakes of Crypto Regulation
The editorial also downplays the risks in the crypto discussion, arguing that since the US has no plans to ban Bitcoin completely, there is nothing to worry about. This view disregards the dynamic and complex process of crypto regulation. Bitcoin is still legal, while the other cryptos are still in ambiguous legal territories in many countries.
Different countries of the world are adopting various strategies for digital assets. While some countries are encouraging innovations, others are introducing restrictions. The U.S. on the other hand, is still in the process of formulating its standards, and this helps in lobbying for the industry.
Digital Tokens and Their Practical Value
Bloomberg’s article also portrays digital tokens as having little real-world utility, an informed assertion that omits several essential aspects. Cryptocurrencies encompass the bubbles and consist of stablecoins and other digital assets that enable seamless financial and mobility services. Most people from countries with volatile currencies, such as Nigeria and Argentina, invest in digital assets to mitigate the effects of inflation.
The editorial goals of crypto companies for their lobbying activities suggest that these strategies are only for the benefit of the firms. However, the calls for the political participation of the industry are mainly motivated by the desire for protection certainty. In this regard, the crypto industry needs to have clearly defined rules, and here again, it lags behind other sectors and thus slows down innovation.