The influence of cryptocurrencies on politics

The Influence of Cryptocurrencies on Politics Cryptocurrencies have come with a kind of

challenge to the world and offer many benefits or opportunities to legislators and agencies
working for government or work with the state.

First, let's define what a cryptocurrency is or what a cryptocurrency is. Well, cryptocurrency is a
digital asset, more precisely a cryptographically secured virtual currency, which cannot be faked
or duplicated. A defining feature of cryptocurrencies is that they are generally not issued by any
central authority, which theoretically makes them immune to government intervention or
manipulation.

Many cryptocurrencies are decentralized networks based on blockchain technology.

Now let's find out what blockchain is. Blockchain is a public record of past valid transactions.
Bitcoin and other cryptocurrencies validate financial transactions through a process known as
"mining," in which distributed computers compete to solve a mathematical problem. The
computer that solves the problem gets a reward and uses the solution to verify transactions by
adding blocks containing multiple transactions to the blockchain. In this crypto world, there are
many blockchains created by certain experts, but the safest are those created by Binance,
Ethereum or Coinbase.

A well-known quality of a cryptographic transaction is that it is very secure and above all
anonymous. The reality is that these types of anonymous transactions can fund a number of
malicious activities. But some cryptocurrencies may have identification requirements to facilitate
better monitoring and auditing than transactions using traditional currencies; while others don't
even reveal the addresses of the transactions, leaving little evidence of who was involved or
where they took place.

Well, and after having clarified what cryptocurrencies, blockchains and crypto transactions are,
we can talk about the influence of cryptocurrencies on the world and, more importantly, on
politics.
There are those who believe that there is a high probability of involving cryptocurrencies in the
political finance sector because the economies of countries can grow because cryptocurrencies
are assets and because there are cryptocurrencies. works with tax payments and their method
works effectively in saving money for future projects. Like Ripple, Ripple is a company that
created XRP, a cryptocurrency that works with state-to-state transactions and also works with
person-to-person transactions. “The right has been in a hurry to embrace cryptocurrency and
impose itself, while the left has shied away from it and abandoned all claims” ~ Ethan Lou
Cryptocurrency, while not lacking in philosophy, is not necessarily the contrary. or right.
Regardless of your political beliefs, you may or may not like it. However, a partisan divide
began to develop around her.

The right has been quick to embrace the cryptocurrency and lay claim to it, while the left has
turned its back on it and relinquished any claim. This sometimes seems illogical. However, it
happens. Michelle Rempel Garner, a Conservative MP, asked the crypto community in
December what the government can do to “improve the space.”

Pierre Poilievre, his colleague, and Maxime Bernier, leader of the People's Party, both welcomed
Bitcoin. Kevin O'Leary, who was previously a candidate for leadership of the Conservative Party
and is now a crypto investor, does the same. Jason Kenney, the premier of the Conservative
Party of Alberta, also praised the prospect of cryptocurrencies. On the other side of the political
divide, mostly silence.

At a party conference in 2016, the New Democrats introduced a resolution to consider

cryptocurrencies, but it seems they became skeptical after that. In 2020, the party's finance
spokesman, Daniel Blaikie, said that cryptocurrencies should be investigated further as they can
be used for crimes such as money laundering and tax evasion, as well as having an effect on the
public financial stability. Then there is former Governor of the Bank of Canada Mark Carney,
now a libertarian who has publicly expressed his disdain for cryptocurrencies.

Such ideological divisions also exist abroad and, as with many topics, we can draw cues from the
United States. Republicans appear to be enthusiastic about cryptocurrency. Former President
Donald Trump may have slammed it recently, but in the same interview, he endorsed his wife's
blockchain initiative. Ted Cruz has frequently backed cryptocurrency in the Senate, where his
colleague Cynthia Lummis has emerged as the industry's top supporter; at one point, the majority
of her donations came from crypto players.

Republican congressman Tom Emmer, who used to start his day on Twitter with the
cryptomeme "gm" short for "good morning" has also been adopted by the sector. Right now in
the world there is the biggest jury process between a state institution and a cryptocurrencie ,
more exacty is the SEC , U.S. Securities and Exchange Commission and Ripple.

A lot of people who want to start investing in the stock market or blockchain, cryptocurrency
wonder, “What is the SEC? / who are the people of the SEC? “. Yes, the U.S. Securities and
Exchange Commission oversees stock exchanges, stockbrokers, investment advisors, and mutual
funds with the goal of promoting fair trading, disclosing important information on markets and
prevent fraud. In the business world, there are many investors and entrepreneurs who believe that
the SEC is trying to manipulate stocks and the cryptocurrency market with government help, and
this leads me and others to believe that the the SEC's goals have either been forgotten or never
been the one they advocated for. "I don't respect the SEC", "But you respect the rules, don't
you?", "Because I respect the legal system." ~ Elon Musk and Lesley Stahl in "60 Minutes".

Against the SEC is a rather promising crypto company, Ripple. Ripple was founded by Jed
McCaleb and Arthur Britto and David Schwartz, who approached Ryan Fugger, who launched a
financial service in 2005 to offer secure payment options for members of the global online
community.

Fugger has created an OpenCoin system that is convertible to Ripple. The company has
developed its own digital currency, called XRP, to allow financial institutions to transfer money
with low fees and low waiting times. In 2013, the company indicated that banks were interested
in implementing their payment method.

Ripple's cryptocurrency, XRP. Right now, many people believe that the trading system created
by Ripple through XRP is very modern and can help people transfer money to all currencies
from all over the world, faster, cheaper and more security. Also, XRP is an asset and the price of
the coin can go up or down depending on the CEO's decision about the future of the company,
world events, or the coin's popularity.
Currently, the market capitalization of XRP is 30 billion euros and a lot of people are holding it
hoping to grow. XRP is a stable currency and has the potential to outperform Bitcoin. Many
financial experts claim that after the process with the SEC, the price of XRP will increase to
between $10,000 and $35,000 per coin. And experts say that due to XRP-based technology,
which is modernizing for 2022, a technology that has given XRP the nickname Bitcoin 2.0 The
fact that XRP has such a big influence in the world raised some question marks for the SEC,
because it's a cryptocurrency they don't want to be in people's lives right now and they sued
Ripple. demanding $1.3 billion through a continuing unregistered offering of digital asset
securities. Ripple; Christian Larsen, company co-founder, executive chairman of the board and
former chief executive officer; and Bradley Garlinghouse, the company's current CEO, secured
funds to support the company's operations, according to the SEC complaint.

According to the lawsuit, Ripple generated cash starting in 2013 by selling a digital asset called
XRP in an unregistered securities offering to investors in the United States and around the world.
. Ripple is also accused of distributing billions of XRP in exchange for non-monetary
considerations, including labor and market-making services.

According to the lawsuit, Larsen and Garlinghouse conducted approximately $600 million worth
of unrecorded personal XRP transactions in addition to structuring and promoting XRP sales
used to fund the company's operations.

As the complaint says, the defendants failed to register the offers and sell their XRP or meet any
exemptions from registration, in violation of the registration restrictions of federal securities
laws. “Issuers seeking the benefits of a public offering, including access to retail investors, broad
distribution and a secondary trading market, must comply with the federal securities laws that
require registration of offerings unless an exemption from registration applies.” said Stephanie
Avakian, Director of the SEC's Enforcement Division. "The registration requirements are
designed to ensure that potential investors – including, importantly, retail investors – receive
important information about an issuer's business operations and financial condition." ,said Marc
P. Berger, Deputy Director of the SEC's Enforcement Division.
The SEC's case, filed today in federal district court in Manhattan, charges the defendants of
violating the Securities Act of 1933's registration provisions and seeks injunctive relief,
disgorgement with prejudgment interest, and civil penalties.

The Ripple attitude against the fact that they are sued by the SEC it was one sustained with
courage because they decide to fight with all of the power that the company has to win against
the a manipulated and toxic institution.

They argued that the SEC was discriminatory in applying the term "security" to virtual
currencies. If this turns out to be true, the commission's powers will be diminished, not to
mention the credibility of its argument. Ripple specifically mentioned some of the relationships
SEC members have had with other crypto platforms, specifically Ethereum.

While there is still little evidence of these links, the commission's decision to exempt Ethereum
from securities laws while sanctioning XRP seems suspicious. This is understandable since
Ethereum operations were initially funded through an ICO, which would certainly be considered
a security. The SEC claims that Ethereum now operates in a decentralized manner, which has
removed it from securities regulation, but Ripple wonders why XRP is being hacked if it is. It is
worth mentioning that Ripple was originally funded by venture capital rather than an ICO, and
now claims that its operation is not fundamentally different from that of Ethereum.

Additionally, Ripple claims that they had no reasonable warning that what they were doing was
illegal under securities laws. The SEC revealed that no decision had been made on whether XRP
could be classified as a security prior to the filing of the lawsuit. Summary of positions:
According to the SEC, Ripple is trading XRP as an unregistered security. They argue that
Ripple's platform is not decentralized because of its participation in financing it.

Ripple believes that the SEC classifies companies based on prejudice rather than merit (or even
welldefined rules). They say that their activities aren't noticeably different from those of other
sites that have been granted permission. The case is currently in the discovery process, which
means that each party is gathering evidence to support their respective allegations. It's likely that
we'll have to wait years before we get a solid answer.
But after all this waiting, crypto currency is changing the world by influencing the politics of any
country, which proves that some countries like Brazil, El Salvador, Israel, USA United States,
United Kingdom and many other countries are praising cryptocurrencies, these countries are
working with them in legal methods of transaction, helping any citizen to understand the future
and how the planet is going. takes place. The politics can develope a greater superior society in
phrases of finances, assisting the residents to familiarize with the transactions among the crypto
currencies, gaining knowledge of approximately a manner this is greater quicker and secured ,
and on this manner , we politics can assist developing a brand new and large enterprise which
could make lots of cash and the financial system of the international locations which are
beginning those form of initiatives inner their borders will upward thrust and the now no longer
handiest the financial system will upward thrust, however even the society, there'll greater
successful human beings of greater things.

Bibliography:

https://www.idea.int/sites/default/files/publications/cryptocurrrencies-and-political-finance.pdf

https://www.sec.gov/news/press-release/2020-338

https://www.hartdavidcarson.com/news/sec-ripple-lawsuit/

https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_Commission