The U.S. midterm elections are currently underway, and stories are going around about how the elections could affect the future of the blockchain industry. While crypto was created to be free from the constraints surrounding the financial market, it is still affected by happenings worldwide, especially in countries where crypto is widely accepted and included in their laws.
The Midterm Elections have historically affected the crypto market negatively in the past. The 2014 and 2018 midterm elections were held on Nov 4 and 6, respectively.
The elections are carried out every two years to elect representatives for the Senate and the House of Representatives. These houses are responsible for the laws and necessary bills passed into law and, as such,
potentially setting the direction for the next two years of legislative and regulatory action. The crypto market price took a plunge just after the elections were concluded.
The major players in the crypto industry have tried to primarily influence the elections through donations, although results have most likely been doctored. Regardless, several candidates with solid opinions on crypto are on the ballot. They being elected or not elected would be a colossal determinant, or they would be the decision-makers.
Recently, the price movement pattern in the crypto market has been similar to that of the stocks. Stocks plunged after expectations of the Republicans taking a comprehensive win to control the House and potentially winning the majority seat in the Senate failed to be realized in the midterm elections.
Some pro-crypto lawmakers have won their races and secured their positions from both sides of the aisle. The primary playmakers driving forces behind legislation that could move in the coming years have retained their seats, and it is believed that regardless of the political makeup of congress, the legislation would move forward.
How Would This Affect The Crypto Space?
Many bitcoin miners across the U.S. were interested in the results of the elections as decisions regarding the Future of Environmental policy may affect their operations and potential expansion.
Since President Joe Biden resumed office almost two years back, bitcoin mining came on the radar of the U.S. political landscape as miners began to troop large numbers from China and the U.S. witnessed new investments locally.
The U.S. midterms are viewed with an eye of importance as they are responsible for setting the tone for how the industry is perceived at both the state and federal level as they are known to weigh approaches to the industry and should crypto ever be deemed as dangerous to the state, appeals on it could be thrown out without any look backs, they would make the decision.
The mining expansion into the U.S. raised concerns, and democratic lawmakers led by Sen. Elizabeth Warren of Massachusetts questioned the industry’s extensive energy usage and its impact on the electricity grids across the country. The mining process consumes a lot of energy and has proven to be something environmentalists think is working against the U.S. and global climate goals.
In a September report by The White House Office of Science and Technology Policy, they called for standards to reduce the mining industry’s environmental impacts. If passed into the bill, the policy could cut down mining productivity to unprecedented levels, driving prices down.
Although Ethan Vera, chief operating officer at mining services firm Luxor Technologies, claimed Republicans are less likely to push the more stringent direction proposed in a White House paper released in early September.,
Democrats like Anna Kelly seem to be making moves against mining facilities and, by extension, crippling the crypto industry. The New York state passed legislation against developing new mining facilities that use carbon-based energy for the next two years while authorities study its effects on local communities and the environment.
The legislation, although yet to be signed into law, has driven companies and jobs out of state and demoralized a few others from thinking of starting their own companies.
The mid-term elections could either cripple the crypto industry in the United States or strengthen them by passing pro-mining bills into law.
Crypto investors and enthusiasts closely watch the power struggle in the House of Representatives and Senate. Although there are no precise results yet, all hope is not lost as investors remain optimistic as Democrats have proven to be strong allies, and those that have secured or maintained their seats have begun to make pro-crypto moves.