Political Spending Could Increase the Chances of Passing Stablecoin Legislation This Year: TD Cowen
Political spending for the upcoming US election may have prompted regulators to approve spot Ethereum products and lawmakers to pass cryptocurrency market legislation. This could bode well for other legislation in the near future, including one to regulate stablecoins, according to investment bank TD Cowen.
TD Cowen said in a note Tuesday that Fairshake PAC, a top political action committee that advocates for cryptocurrencies, and its affiliates have raised more than $100 million for the 2024 election. report From Public Citizen, a consumer advocacy group.
“We believe this monetary enormity helps explain why the SEC approved the Ether ETF and the House of Representatives overwhelmingly passed the cryptocurrency market rescue bill.” The TD Cowen Washington Research Group, led by Jaret Seiberg, wrote a note Tuesday. “We see this as positive for stablecoin notes this year and market structure in 2025.”
Last week, the Securities and Exchange Commission unexpectedly Approved 8 spot Ethereum exchange traded funds, some guess Politics played a role. U.S. House of Representatives, one day before SEC approval pass Market structure legislation to regulate the cryptocurrency industry has garnered support from some Democrats, including former House Speaker Nancy Pelosi of California.
Stablecoin legislation was considered a no-brainer, but it was tied to who the primary regulator of stablecoin issuers would be: the federal government or state regulators. A House version passed out of the agency’s Financial Services Committee last year. Committee chairs Rep. Patrick McHenry (R-N.C.) and Rep. Maxine Waters (D-Calif.) said they are working on it.
PAC spending
Crypto industry super PACs have raised more than $100 million for the 2024 election, Public Citizen said in a report released earlier this month. More than half of the funds come from direct spending by companies such as Coinbase and Ripple Labs, the group said, with the remainder coming from cryptocurrency executives and venture capitalists.
Fairshake and its affiliates make up the third-largest PAC in the country and spent $10 million against Rep. Katie Porter, D-Calif., in the Senate race, Public Citizen said. When she lost, Potter criticize “More than $10 million in attack ads” against her.
“Few things in politics speak louder than campaign donations. Incumbents don’t want to face challengers who are taking cash from single-issue PACs,” TD Cowen said Tuesday. “And they want to get that cash for themselves to ensure re-election.”
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