Here’s what you should know about the upcoming US midterms: Law Decoded, Oct. 31–Nov. 7
3 min read
The United States will go to the voting booths on Nov. 8 to decide the fate of all 435 members of the House of Representatives and 34 out of the 100 Senate seats. The outcome will decide the prevailing power balance in Washington and has the potential to affect the crypto industry. Perhaps that’s why 38% of eligible voters will consider candidates’ positions on crypto, according to a recent survey. Another survey suggests that crypto regulation is a bipartisan issue, with 87% of Democratic and 76% of Republican respondents saying they want clarity from the U.S. government on digital assets.
Fundraising is a normal part of the American political system, but the numbers associated with crypto may have raised some eyebrows. Sam Bankman-Fried called $1 billion his “soft ceiling” for 2022 election contributions, for example. Even though he backpedaled on some of his intentions, he remains the sixth-largest donor in this election cycle. There are numerous crypto-related political action committees as well. According to some reports, crypto-affiliated donors have spent more than major mainstream lobbies like defense and Big Pharma.
With the nonpartisan nature of crypto being somewhat of a cliche, there are clear signs of political divisions. First, crypto tends to skew to the Right. An analysis of legislators’ agendas shows that Republicans are generally way more friendly to digital assets. Why? Read Cointelegraph’s full review of the upcoming midterm elections and their relation to crypto.
Digital yuan will offer “controllable anonymity”
Chinese central bank governor Yi Gang claimed that while the country moves forward with adopting its central bank digital currency (CBDC) — the digital yuan — privacy protection remains “on the top of the issue.” He went on to describe the two-layer payment system that will offer controllable anonymity to users. At tier one, the central bank supplies digital yuan to the authorized operators and processes interinstitutional transaction information only. At tier two, the authorized operators only collect the personal information necessary for their exchange and circulation services to the public.
South Korean prosecutors accuse Do Kwon of manipulating LUNA’s price
Another week, another update on Terra’s founder and his adventures. This time, South Korean prosecutors have obtained evidence to suggest that Do Kwon once ordered an employee to manipulate the price of LUNA, since rebranded Luna Classic (LUNC). The reported evidence came in the form of a “messenger” conversation between Kwon and the former Terraform Labs employee. Meanwhile, Kwon continues to deny all allegations and move across the globe. Previous reports have suggested that he first moved from South Korea to Singapore before transitioning to Dubai. It’s now believed he might be residing somewhere in Europe without a valid passport.
12 independent entities pledge legal support for Ripple
Ripple is garnering more support from the crypto and finance industry in its ongoing battle with the United States Securities and Exchange Commission. The number of companies, developers, exchanges, associations and investors filing amicus briefs for the firm has reached 12. Among them, you can find such industry heavyweights as Coinbase, the Chamber of Digital Commerce, the Crypto Council for Innovation, the Blockchain Association, Valhil Capital, I-Remit, Spend The Bits, Tapjets, the Investor Choice Advocates Network and John Deaton.
IRS prepares for an increase in crypto cases in the upcoming tax season
The United States Internal Revenue Service’s criminal investigation division is ramping up for tax season, with its sights set on the crypto community. Division Chief Jim Lee said it is preparing “hundreds” of crypto-involved cases, many of which will soon be available to the public. Lee said that in the last three years, there has been a major shift in digital asset investigations conducted by the IRS. Previously, these investigations were mostly money laundering-related; whereas now, tax-related cases make up nearly half. This includes what is often called “off-ramping” transactions where digital assets are exchanged for a fiat currency, along with not reporting crypto payments.
