A Tweet Gives Insight Into Capitol Hill's View on Crypto

June 29, 2020 09:50 AM
There's been little consistency among Capitol Hill on crypto
Concerns that crypto could threaten USD's reserve currency status
Crytpo and Bitcoin Market Cap Story of Day

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After a modestly soft weekend, crypto prices, the sector is unchanged this morning. Spot volumes remain light at about 50% of the 30-day average.


CRYPTO STORY OF THE DAY

Last week, Ohio Senator Warren Davidson tweeted positively about bitcoin (BTC). We think the representative's brief comment gives a preview of future U.S. political debates around crypto.

In his brief tweet, Senator Warren Davidson posted a picture of the iconic BTC coin with the message, “#SoundMoney is required to #DefendFreedom.” There has been little consistency from Capitol Hill around crypto so far. President Trump notably went on a negative Twitter tirade about crypto over a year ago and those feelings were reconfirmed in John Bolton's memoirs. The mix of opinion so far from U.S. lawmakers has been: concern crypto could be a threat to USD's reserve status, a platform for libertarian freedom enthusiasts or politicized concepts related to the private sphere entering the public domain.

Davidson's tweet poses a question we believe will become central to the crypto debate as the asset grows. There is undoubtedly more “freedom” that emerges from a censorship-free currency such as BTC. The question is, however, whether the U.S. political landscape would be willing to give up the benefits that emerge through controlling the money supply. By supporting this elevated “freedom,”policymakers would be giving up one of their most valuable and effective tools. The amount of politicians that would back such a shift is extremely uncertain.

About the Author

FRNT Financial is a technology and sales layer that offers institutional and accredited investors access to various forms of exposure to crypto-assets. You can subscribe to FRNT Financial Morning Note at https://www.frnt.io/morningnote