One of the primary allures of bitcoin has always been its lack of heavy regulations. Add to that, the digital currency wasn’t on the radars of politicians from either major U.S. political party.
Both scenarios are changing. Now, there is some partisan divide on how the cryptocurrency should be regulated in the U.S. Of course, there are implications on that front for the broader universe of digital assets as well as exchange traded funds such as the Invesco Alerian Galaxy Crypto Economy ETF (SATO).
SATO’s roster is largely comprised of a bitcoin-based index fund and crypto miners. This means the fund can be sensitive to crypto price fluctuations and related headlines. On that note, it’s worth acknowledging that Democratic presidential hopeful Robert F. Kennedy, Jr. is supportive of bitcoin.
Challenging an incumbent president for either party’s nomination — an endeavor Kennedy is pursuing — is difficult. Still, it’s possible the upstart contender could gain traction with some voters by way of his support of bitcoin.
Kennedy Highlights Bitcoin Advantages
At the Bitcoin 2023 conference last week, Kennedy touched on the need to protect bitcoin against increased government surveillance.
“We live in a time now that technology has dangerously expanded the capacity for governments and corporations to control our lives,” Kennedy said at the confab. “Distant, impersonal multinationals and authoritarian technologies have usurped realms of human activity that were once private or held by the community.”
Of note to investors considering SATO, Kennedy criticized the Biden Administration for purposing Digital Asset Mining Energy (DAME) excise tax, which would add another layer of taxation on bitcoin miners due to their energy consumption.
Kennedy called it a “terrible precedent.” He said it could open the door to other industries being taxed simply because they use consumer power to power their businesses.
The candidate also mentioned some coronavirus-related issues, including last year’s trucker protest in Ottawa, Canada, as reasons for his support of bitcoin.
“When I witnessed this cataclysm, this devastating use of government repression, I realized for the first time how free money is as important to freedom as free expression.” he said in his speech.
The candidate is displaying confidence in bitcoin in another way. His campaign is allowing supporters to make contributions to his 2024 presidential run in bitcoin. This highlights another usage case for the digital currency.
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