Digital currencies are set to become a prominent player in United States politics as the Republican arm of the House is set to begin accepting donations in crypto. According to a report by Axios, The National Republican Congressional Committee will be the first National party committee to accept donations using cryptocurrencies.
— NRCC (@NRCC) June 17, 2021
Per the report, the donations will be handled by the partner payment processor, Bitpay, and will be converted directly to the US Dollar, giving the NRCC no room to HODL crypto directly. This will shield the accepted donations from any negative volatilities inherent in these emerging asset classes.
Is this Move Political or a Deep Trust in Crypto Technology?
The move to accept cryptocurrencies brandishes a slight intersection between politics and an embrace of technology. While the NRCC pointed out that the tech will further help in advancing its agenda, the role of cryptocurrencies may have a far-reaching implication in the broader scheme of things.
“We are focused on pursuing every avenue possible to further our mission of stopping Nancy Pelosi’s socialist agenda and retaking the House majority, and this innovative technology will help provide Republicans the resources we need to succeed,” Rep. Tom Emmer (R-Minn.), the NRCC chairman, said in a statement.
The broader influence of this show of love can imply a more engrafted backing for more favorable regulations from the Republican legislators in the near future. The twist from the harsh criticism of cryptocurrencies especially in relation to their energy consumption, to this wide embrace, could win the hearts of many crypto investors and enthusiasts. This helps in projecting this decision as more political than an embrace of digital assets.
Crypto Donations is Overly Inherent in US Electioneering Campaigns
While the NRCC is the first national party to solicit donations in crypto, historically, other individual election contenders have often lent support to crypto as part of donation options. While the American election candidates are many, the campaign office of Rep. Eric Michael Swalwell Jr, a U.S. 2020 presidential candidate announced the acceptance of crypto donations per an earlier Coingape report.
Also, Nasdaq-listed cryptocurrency exchange, Coinbase Global Inc set up a Political Action Committee (PAC) with plans to raise money and spend it on US elections back in 2018. While under the US federal law, corporations cannot donate straight to candidates in federal elections, except through PACs, the Coinbase approach was to register its interest in governance and the eventual impact on the space the company represents as it relates to regulations.