Crypto Is Coming to Washington – And Is Now a Winning Issue

The Power of the Crypto Grassroots Is Growing

Crypto Is Coming to Washington – And Is Now a Winning Issue

I love the United States. But I can’t stand U.S. politics…

My work is for everyone. That’s why I don’t talk about politics in the Digital Asset Daily.

I’m too busy scouring markets and looking for ways to help you make money… And I rather focus on what unites my readers: Our goal of safely growing wealthier.

But there are times when I have to follow politics. That’s because policies coming out of Washington can have huge effects on the markets – and therefore, your portfolio.

I saw this happen back in March 2010, when President Barack Obama signed the Affordable Care Act (ACA) – also known as Obamacare.

The ACA significantly changed the healthcare system in the U.S. by reducing the amount individuals and families paid in uncompensated care.

The act required every American to have health insurance. And it provided assistance to those who couldn’t afford a plan.

Of course, Obamacare was a boon for healthcare stocks.

Over the next seven years, the Health Care Select Sector SPDR ETF (XLV) – which tracks the industry – rose as much as 137%. By comparison, the S&P 500 was up 114%.

I saw something similar in December 2018, when President Donald Trump signed the Tax Cut and Jobs Act (TCJA).

It was the most sweeping tax legislation in more than 30 years.

The TCJA reduced the corporate tax rate from 35% to 21%. That meant any company that had an effective tax rate of 35% in 2017 would’ve been able to hang onto an additional 14% of its profits in 2018.

U.S. multinational companies that held their overseas profits in tax-haven countries were some of the biggest beneficiaries.

Over the next two years, companies like Apple, Microsoft, and Facebook saw their stock rise 188%, 122%, and 97%, respectively. By comparison, the S&P 500 was up 35%.

So under those conditions that can impact your net worth, I will comment on politics – no matter how much I dislike it.

And right now, after facing years of hostility from politicians and regulators – the political winds are shifting in favor of cryptocurrency. And I believe it will mean even bigger returns for investors in this asset class.

Washington Is Getting Our Message

Earlier this month, I told you about an obscure regulation that had been a major roadblock to crypto adoption. It’s called Special Accounting Bulletin (SAB) 121

The Securities and Exchange Commission (SEC) introduced the notice back in March 2022. It requires digital asset custodians to hold their clients’ assets on their own corporate balance sheets as a liability.

That means if a bank holds $1 billion worth of bitcoin on behalf of a customer, it will need to hold $1 billion worth of its own assets as security against that bitcoin.

As I wrote to you in my May 15 dispatch, I believe SAB 121 was deliberately enacted to slow the adoption of crypto assets by U.S. institutions. (You can read my full writeup right here.)

Fortunately, Congress had the sense to repeal the rule.

On May 8, the House of Representatives voted 228-182 to pass the Financial Innovation and Technology for 21st Century Act (FIT21). The bill included a provision to repeal SAB 121. A week later, the Senate voted 60-38 to repeal the measure as well.

Most telling of all is that the measure received bipartisan support in both Houses – with 21 Democrats voting for it in the House and a dozen backing it in the Senate.

Despite the bipartisan support for FIT21, my concern was with President Biden. He had threatened to veto the bill if it made it to his desk.

Here’s what I wrote on May 15:

Politically speaking, this is a very dangerous move by the President. Nearly 52 million Americans own crypto assets... Lining up against both Wall Street and 52 million voters is a dangerous thing to do in an election year.”

President Biden must have gotten our message. Because on Wednesday, the White House put out a statement saying that the president won’t veto the bill.

The Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote the responsible development of digital assets and payment innovation and help reinforce United States leadership in the global financial system.

For years, I told you Big Money would have no choice but to embrace the digital asset class. The same thing is now happening to Big Government.

The Power of the Crypto Grassroots Is Growing

Friends, President Biden had no choice but to back down on FIT21. If he didn’t, he’d cede this popular issue to Republicans.

President Trump – who opposed crypto and bitcoin when he was in office – recently reversed course, too, and has now signaled his support for digital assets.

If he stayed the course, President Biden would be swimming against the tide of history.

I’m not being hyperbolic when I say the emergence of digital assets is a paradigm shift.

They will absolutely change how humans interact with each other politically, socially and economically. And create generational wealth for those who get in early.

Today, 300 million people have exposure to crypto across the world. But blockchain research firm Blockware projects global bitcoin adoption to break past 10% in 2030.

After that, growth could become parabolic, eventually reaching 80% of the population in the 2050s.

There are over 8 billion people on the planet. So you see how this is a generational shift. 

Let’s just say 10% of the global net worth (currently estimated at $454 trillion) adopts bitcoin. That’s $45 trillion of new buying.

Assuming every new $1 invested in bitcoin leads to a $1 increase in bitcoin’s value… And that $45 trillion would lead to bitcoin rising 37x from here.

(The real number, according to a Bank of America report, is much higher. It projects that for every new $1 of buying leads to a $118 increase in bitcoin’s market value.)

Think about it…

Bitcoin is a completely agnostic asset. It’s owned by Democrats, Republicans, young, old, conservative, liberal.

So you can see why President Biden (and President Trump) had no choice but to change course on crypto.

Regardless of your income, political affiliation, beliefs or background… Bitcoin is an escape hatch from the traditional financial system.

Friends, the winds have shifted in favor of crypto on Wall Street. And now they’re shifting on Capitol Hill, too.

Let the Game Come to You!™

Big T

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