“Crypto has spent a record $119 million in the 2024 federal elections, magnitudes more than it has ever spent before. This huge number means that crypto accounts for almost half of all corporate political contributions in this cycle. Its spending since 2010, totaling $129 million, puts the industry second only to fossil fuels, according to a report from the progressive consumer advocacy group Public Citizen.
“It’s already 15 percent of all known corporate contributions since the Citizens United ruling,” says Rick Claypool, a research director at Public Citizen who authored the report on crypto election spending, referring to the landmark 2010 Supreme Court decision that opened the floodgates for virtually unlimited corporate spending in elections through outside groups.
Crypto’s ballooning political war chest and voracious appetite to dangle money in front of lawmakers speaks to the power it has amassed over the past decade and a half, even as it has struggled to gain any real traction with the public.
Three-quarters of Americans who’ve heard of crypto aren’t confident in its safety and reliability, a 2023 Pew Research survey found, and only 7 percent of Americans used crypto last year, according to the Federal Reserve. Crypto’s reputation suffered in particular from the controversy surrounding crypto companies in the last few years, especially the catastrophic meltdown of FTX. Though the first cryptocurrency was launched in 2009, it still hasn’t penetrated as a mainstream payment method, with very few retailers allowing customers to pay directly with cryptocurrency. It remains mostly a vehicle for speculative investment.
Despite that — or because of it — crypto companies have redoubled their efforts to help elect pro-crypto politicians and lobby for policies that would boost the sector’s growth. The industry wants the influx of money it’s spending to send the clear message that the crypto craze isn’t over — and in fact, isn’t a craze at all, but the lasting future of finance. “Crypto is here to stay,” Paul Grewal, Coinbase’s chief legal officer, recently wrote in public comments regarding regulation.
The sector’s most strident champions want you to believe that it’s a key issue for voters in the upcoming election, right next to inflation and health care. The industry is shouting from the rooftops that politicians can’t ignore crypto — and trying its hardest to make sure we won’t be able to either.”
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“After a rough few years of being walloped by scandals and government crackdowns, crypto is facing an existential crisis. There are already some patchwork regulations governing the world of digital currencies, but one key issue remains hotly debated: Which government agency should oversee them?
In the US, securities like stocks and bonds have to be registered with the Securities and Exchange Commission (SEC), which comes with a host of disclosure requirements and other rules to protect investors.
As far as the SEC is concerned, the law already puts most cryptocurrencies squarely under its purview, and the agency has been aggressively pursuing enforcement against crypto exchanges like Coinbase and Binance, alleging that they’re running unregistered securities exchanges. But the crypto industry doesn’t want to be regulated by the SEC — it wants to fall under the Commodity Futures Trading Commission (CFTC) instead.
“The CFTC is a much smaller agency with far fewer resources,” says Molly White, a crypto researcher and critic who has been tracking the industry’s political spending.”
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“One major change this election cycle is how much more visible and vocal the Trump-supporting faction of crypto proponents has become. Cameron and Tyler Winklevoss, who founded the crypto exchange Gemini, tried to donate roughly $1 million worth of bitcoin each directly to the Trump campaign, apparently unaware it would exceed the FEC contribution limit. Venture capitalists Marc Andreessen and Ben Horowitz have both affirmed that they’re joining Team Trump too. Other backers include Jesse Powell, co-founder of the crypto exchange Kraken, and Charles Hoskinson, co-founder of the ethereum blockchain.
It’s worth noting that when Bankman-Fried was still the biggest face of crypto, he was known as a Democratic megadonor. We only found out later that he’d contributed roughly the same amount to Republicans through dark money groups.
Trump, for his part, was a harsh crypto critic in the past, but has recently done a 180, saying he would end Biden’s “war on crypto,” and that he would fire Gensler, the SEC chair. He even recently announced a family crypto project, run by the Trump Organization, called The DeFiant Ones — a play on “decentralized finance” — that would, according to Trump, help Americans who have been “squeezed by the big banks and financial elites.”
But crypto’s partisan inclinations are more complicated than simply supporting Republicans.
The industry’s spending is funneled mostly through the pro-crypto super PAC Fairshake, which has already spent $93.8 million this election cycle and is the second best-funded super PAC in the election, after Trump-backing Make America Great Again Inc. Fairshake’s backers include Coinbase, which has contributed a total of $50 million to the 2024 elections so far, and Ripple, a blockchain payment network that spent $49 million. (Both Coinbase and Ripple have faced SEC lawsuits.) Venture capital firm Andreessen Horowitz has also contributed $47 million to Fairshake.
Fairshake largely focuses on House and Senate races, and has been largely nonpartisan, supporting and opposing politicians of both parties based on their crypto stance.”
“The concept of nutritional and ingredient labeling is even more complex in the alcohol space since the TTB uses a pre-approval system for alcohol labeling, meaning that alcohol producers have to submit their proposed labels to the agency for approval before the product ever hits the market. No approval, no market access. This is in marked contrast to most food labeling, which the Food and Drug Administration enforces after a product goes to market.”
“while Americans are having more and more difficulty getting access to pain-relieving opioids, the FDA forces them to wait for an alternative to opioids that people in much of the developed world have been using for years.”
“”Right now, hairstylists in Connecticut need almost a year of education before they can work at their trade,” Darwyyn Deyo, a professor of economics at San Jose State University, tells Reason. “Although efforts at improving inclusivity and equity can improve outdated state-mandated curriculum, SB 178 could also make it harder for aspiring hairstylists to afford their training by increasing the cost of education.”
Research from the Institute for Justice, published in November 2022, found that “too many licensing burdens are excessively onerous or entirely unnecessary” because “red tape forces aspiring workers to waste time and money or, worse yet, shuts them out of work.”
One of the authors of that study, Kyle Sweetland, a research analyst at the Pacific Legal Foundation, tells Reason that the new Connecticut law is no exception. “While everyone loves to get a good haircut,” Sweetland says, “requiring beauticians in Connecticut to spend more hours in training—as Public Act No. 24-53 will do—is unfair to debt-burdened beauticians in the state and could lead to higher prices for customers.”
“If there is an unmet demand and high prices for cutting a certain type of hair,” he adds, “salons have a strong financial incentive to train their beauticians on cutting this type of hair—or to hire beauticians who know how to do so already.””
“Pedestrian deaths have increased 75 percent in the US since 2010, according to Smart Growth America’s latest report. The numbers started increasing dramatically in 2020, with pedestrian deaths reaching a 40-year high in 2022.
In the intervening years, I’ve learned a lot about the factors that make traffic fatality rates in the US 50 percent higher than they are in other comparable nations.
They include dangerous road design that makes it easy for drivers to speed, and a breakdown in traffic enforcement that allows some of the worst drivers to get away with it for so long that they eventually kill someone. I’ve also reported how drivers in the US spend more time using their phones while driving than people in other countries, and on survey data that seems to suggest that drivers in the United States have more lax attitudes toward road safety than their European counterparts.
But there’s one thing I still can’t understand.
Why has the government failed to address the fact that large, heavy vehicles are deadlier to pedestrians and cyclists than smaller cars? There is actually a way to make cars safer for everyone — and it includes changing how the government rates a “safe car.” In Europe, government regulators test new vehicles to see how dangerous they are for pedestrians and cyclists and include that information in their safety ratings. They’ve been doing it for years. The US does no such thing.
Those 5-star safety readings you see for cars? That rating is for people inside the car. So if you’ve read the news about the soaring numbers of vulnerable people being killed on roads, and thought about purchasing something that would be safer for them, you aren’t going to be able to find that information. The government currently isn’t testing for it.”
“In a recent paper titled “Industrial Headwinds: Reducing the Burden of Regulations on U.S. Manufacturers,” published in the May 2024 Club for Growth Policy Handbook, economist Daniel Ikenson writes, “For manufacturing firms, the cost of federal regulations in 2022 was roughly $350 billion, or 13.5% of the sector’s GDP—a burden 26% greater than the inflation-adjusted cost of regulatory compliance in 2012.”
He adds that while the average U.S. company pays a regulatory compliance price of $13,000 per employee, large manufacturers shoulder a cost more than twice as much—$29,100. However, even some small-sized manufacturers face annual compliance costs of $50,100 per employee. This helps explain why manufacturing automation is so popular and why our fastest-growing companies are in service-sector tech, not manufacturing.”
“if it’s win-win, why just make the minimum $20? Why not $30? Or $100?
Because government requiring higher wages is not a win-win.
Interfering with market prices always creates nasty unintended consequences.”
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“No. 1: Thousands of Californians have already lost jobs because some restaurants closed. Others lost income because their employer cut worker hours. The chain El Pollo Loco cut employees’ hours by 10 percent.
Pizza Hut announced that they will lay off more than a thousand delivery drivers. One such driver, Michael Ojeda, understandably asked, “What’s the point of a raise if you don’t have a job?”
No. 2: Workers who still have jobs will lose them because now their employers have more incentive to automate. Chipotle just created a robot that makes burrito bowls. Even CNN acknowledged, “Some restaurants are replacing [fast food workers] with kiosks.”
“California first adopted its Advanced Clean Cars (ACC) standard in 2012. The rules required automakers to gradually increase sales of zero-emission vehicles as a percent of total sales in California, culminating in an 8-percent share in 2025. Plug-in hybrids, which use both electric and gas-powered motors, counted for partial credit toward the total.
The Virginia General Assembly passed House Bill 1965 in 2021, which directed the State Air Pollution Control Board to adopt low-emission and zero-emission vehicle standards equivalent to California’s. The bill was signed into law by then-Gov. Ralph Northam, a Democrat, whose support helped guarantee the bill’s passage. Virginia is among 18 states and the District of Columbia that have adopted some or all of California’s regulations.
But the following year, California adopted Advanced Clean Cars II, which greatly expanded the requirements of the original standard. Under the new rules, the zero-emission requirement would jump from 8 percent of automaker’s sales for model year 2025 all the way to 35 percent in 2026, increasing each year until 100 percent of all new vehicles sold for model year 2035 must be electric.
The following day, Youngkin and the Republican-controlled Virginia House of Delegates indicated their intent to repeal H.B. 1965 and uncouple the state from California’s rules, but the Democrat-controlled state Senate squashed their efforts the following year. In the 2023 elections, Democrats regained control of the House of Delegates while keeping control of the Senate, and the state Senate once again defeated efforts to repeal the law in January 2024.
Ultimately, California’s more aggressive rules provided the legal justification for Virginia’s withdrawal. Youngkin’s press release claims that H.B. 1965 merely authorized the state to follow Advanced Clean Cars I, the rules in place at the time that went through 2025. “An opinion from Attorney General Jason Miyares confirms the law, as written, does not require Virginia to follow ACC II,” the press release continues. “Therefore, the Commonwealth will follow federal emissions standards on January 1, 2025.”
“We are alarmed that Governor Youngkin thinks that he is above the law,” Nicole Vaughan, communications director for the Virginia Conservation Network, tells Reason in a statement. “Legislation passed in 2021 directs Virginia’s Air Pollution Control Board to adopt Advanced Clean Cars and subsequent updates to the program. In doing so, Virginia exercised an option under the federal Clean Air Act to follow the more stringent standards adopted by California and several other states to address tailpipe pollution.””