And now, with the news Thursday (Sept. 5) that Mercuryo has launched a euro-denominated debit card that allows users to spend bitcoin and other cryptocurrencies directly at over 100 million merchants using Mastercard’s network, those people can start using their crypto to actually pay for things in the real world.

“Individuals holding crypto who want a convenient way to use their assets for everyday purchases can now benefit from Mercuryo’s Spend crypto debit card, which allows users to spend their crypto directly from their wallet. This eliminates the need for an intermediary,” Mercuryo said in a statement, noting that the new crypto payment solution “integrates with both Apple Pay and Google Pay.”

Users add funds to their debit card by selling their cryptocurrency of choice, which is immediately made available on the card balance. Compared to the one to two days it typically takes money to appear on a bank card using traditional crypto off-ramping processes, this experience is meant to facilitate the ability for crypto holders to spend their digital assets in the real world or across eCommerce channels in real time.

PYMNTS Intelligence has found that a positive checkout experience keeps customers coming back to a merchant — and that debit cards are now the preferred method underpinning digital wallet payments.

Read more: Web3 Fans Say Apple NFC Chip Access Will Jumpstart Crypto Payments Era

Boosting Adoption of Cryptocurrencies as Payment Mechanism

The introduction of an easy-to-use crypto debit card could accelerate the mainstream adoption of cryptocurrencies by making them more accessible and convenient for non-tech-savvy users. For many, dealing with crypto requirements like private keys, wallets and exchanges can be intimidating. The ability to spend crypto via a familiar interface like a debit card makes the experience more user-friendly. As more consumers use these cards, businesses may start accepting cryptocurrencies directly, further embedding crypto in the global economy.

The shift could also lead to increased demand for businesses to integrate crypto payments within their existing payment infrastructure. Payment processors and merchant acquirers would need to adapt to this emerging trend, potentially leading to a broader range of crypto-related financial services and products.

And the debit card is not even the only crypto payment offering Mastercard launched this summer. In August, Mastercard introduced a crypto-to-fiat card with Web3/blockchain platform MetaMask and cryptocurrency payments firm Baanx. The MetaMask Card lets MetaMask wallet customers use crypto for everyday purchases in fiat currency wherever Mastercard is accepted. The card is being piloted on a limited basis — a few thousand digital-only cards — for European Union and U.K. users.

Elsewhere, Wirex has launched its mainnet, making its decentralized payment method, Wirex Pay, live and ready to use. This blockchain-based payment method allows users to make transactions using cryptocurrencies at more than 80 million merchants in more than 200 countries, the company said Aug. 28.

This news comes about a month after Wirex and Visa teamed up to promote the use of digital currencies in Europe and the United Kingdom, saying their collaboration will “explore new opportunities to leverage and integrate innovative Visa cards and reduce friction in payment experiences.”

Research in “The Embedded Finance Ecosystem: Logistics and Wholesale Trade Edition,” a PYMNTS Intelligence and Carat from Fiserv collaboration, found that a majority of marketplaces (57%) are “highly interested” in further innovating their existing digital wallet offerings.

See also: Crypto Is Minting Millionaires, but Its Payment Utility Remains Uncertain

Overcoming Traditional Barriers to Crypto Use and Adoption

The use of cryptocurrencies for payments is still heavily regulated, and introducing such a product could face challenges across different European jurisdictions. Anti-money laundering (AML) and know-your-customer (KYC) requirements would still apply, and companies offering such products would need to ensure compliance with EU-wide regulations like the Markets in Crypto-Assets (MiCA) framework.

Any success crypto payments might have could depend on how well the particular mechanism of choice integrates with these regulations. If it manages to comply while maintaining the privacy and autonomy of non-custodial wallets, it could serve as a blueprint for other markets and regions to follow.

“It’s important to know that crypto is not just bitcoin and Doge and NFTs,” Solana Foundation Head of Payments Sheraz Shere told PYMNTS in May. “… Blockchains are really alternative rails for payments and financial assets.”

And PYMNTS Intelligence finds that blockchain technology, the fundamental technology underpinning cryptocurrencies and digital assets, could have tremendous potential for use in regulated industries, such as finance and healthcare.

Of course, it all comes against a payments and commerce backdrop where other advances and innovations are simultaneously making strides.

The post Mastercard’s Crypto Debit Card Integrates With Apple and Google Pay appeared first on PYMNTS.com.

Beyond the U.S. election, the cryptocurrency exchange will continue its policy spend as it faces issues in other parts of the world, Coinbase Chief Financial Officer Alesia Haas said Wednesday (Sept. 4), according to a Seeking Alpha report.

Speaking during Citi’s Global TMT Conference, Haas also said regulation of crypto would create clarity in the sector, Coinbase is pleased to see bipartisan effort in seeking such legislation, and the company will work with any administration or legislator to do so, per the report.

It was reported in June that Coinbase gave $25 million to crypto political action committee (PAC) Fairshake, adding to the massive amount of funds the crypto sector has stockpiled for this year’s election.

“When it comes to our mission of increasing economic freedom by growing the adoption of cryptocurrencies, we are deeply engaged in policy efforts,” Coinbase said at the time.

The shifting regulatory landscape surrounding crypto in the U.S. was a major topic during Coinbase’s most recent earnings call, which was held Aug. 1, and company executives embraced a positive outlook.

“We are increasingly optimistic that the next administration, whether Democrat or Republican, will be constructive on crypto,” Coinbase CEO Brian Armstrong said during the call. “The rhetoric has shifted … there is real energy within both the House and the Senate to pass meaningful legislation.”

Executives said during the call that the approval and launch of ethereum (ETH) exchange-traded funds (ETFs) was a “huge step forward” for regulatory clarity, as it confirmed that ETH is not a security.

They added that Coinbase saw USDC become the first stablecoin to achieve compliance with the European Union’s landmark Markets in Crypto-Assets (MiCA) regulatory framework.

The need for clear regulatory frameworks is one of the most pressing issues facing the crypto and blockchain space, as regulatory clarity is crucial for the mainstream adoption and growth of cryptocurrencies, PYMNTS reported in July.

Clear regulations can protect consumers, reduce fraud and encourage institutional investment, while regulatory uncertainty or overly restrictive regulations can stifle innovation and hinder technological advancements, lead to market instability and drive businesses to more crypto-friendly jurisdictions.

The post Coinbase to Continue Spending to Influence US and Global Policy appeared first on PYMNTS.com.

The company announced the hiring Monday (Sept. 2), while also noting that its Singapore entity had been granted a Major Payment Institution (MPI) license by the Monetary Authority of Singapore, letting it offer digital payment token and cross-border money transfer services.

As CEO, Lin will oversee OKX Singapore’s strategic initiatives, “including the development of permitted digital payment token products and services designed to meet the needs of Singapore customers,” the company said in a news release.

In addition to her time at Grab — where she led the Regional Strategy & Economics team — Lin also held a variety of positions at MAS and the sovereign wealth fund GIC.

“Singapore is a world-class digital asset hub and an important market for OKX,” Lin said. “I am excited to be part of the team building our presence here. The MPI license is an important step in our journey, and we are more committed than ever to enabling access to digital assets for our customers, and contributing to the community and ecosystem.”

As noted here earlier this summer, Singapore is a world leader in digital engagement, second only to Brazil on that score according to findings from the PYMNTS Intelligence report “How the World Does Digital.”

“Digital transformation is no longer just a fancy term in Singapore. It’s essential for businesses to stay relevant,” PYMNTS wrote. “Singapore has been actively working on its digital transformation for years, focusing on using digital technologies to improve different industries and make the economy more innovative.”

Singapore’s residents are also fans of cryptocurrency, with a survey earlier this year by Coinbase and Seedly found that more than half of the city-state’s “finance-forward” residents own cryptocurrency.

The survey showed that 57% of those interviewed hold digital assets, with the majority having between $1,000 and $25,000 invested, and 55% saying they had staked cryptocurrency through a centralized exchange.

“The high level of staking activity in Singapore underscores the case for providing consumers with sound, regulated choices while improving consumer protection,” Coinbase said on its blog. “Regulating delegated staking through a centralized service or exchange would further differentiate it from lending products ‘window-dressing’ as staking and allow consumers’ assets to remain protected at all times.”

The post OKX Names Grab’s Gracie Lin to Head Singapore Crypto Exchange appeared first on PYMNTS.com.

There’s a chance, according to a Sunday (Sep. 1) report by Coindesk, though it’s a longshot.

The report cited comments from two Republican lawmakers — Sen. Cynthia Lummis, R-Wyo., and Sen. Tim Scott, R-S.C., — at a recent symposium that laid out a possible path to the adoption of crypto legislation.

The lawmakers say the best hope comes via the Senate Agriculture Committee, which would focus on commodities law. Assuming the bill makes it past committee, Lummis said, it would likely become a “Christmas Tree bill,” where legislators add provisions and amendments.

However, the Coindesk report noted, any legislation faces an uphill battle, with limits including the number of days left on the legislative calendar.

“It’s surprising how few of those are left after the election,” Lummis said at the symposium. 

It could be that crypto legislation could be folded into “must-pass” legislation covering things like national defense and the budget, the report added.

“You have an opportunity to get a lot accomplished in a little bit of time because the motivation and the incentives are there,” Scott said.

In spite of the odds, the report said that many people interviewed by Coindesk have been “cautiously optimistic” about the legislation advancing in 2025, if not this year, bolstered by the fact that the House adopted crypto legislation earlier this year.

The report came weeks after Senate Majority Leader Chuck Schumer told crypto insiders who support Vice President Kamala Harris’ bid for president that he thinks crypto legislation could happen this year.

“We all believe in the future of crypto,” said Schumer, a Democrat from New York. “Congress has a responsibility to provide common sense and sound regulation on crypto, and we need your support to make sure that any proposal is bipartisan.”

The “Crypto4Harris” effort is part of a burgeoning movement to rally crypto sector support for the candidate as her Republic rival, former President Donald Trump, collects industry endorsements. Trump, who at one time called crypto a “scam,” has since changed his tune, addressing a major industry conference in July.

“Trump’s rebranding as a crypto-friendly candidate is part of a larger trend among Republicans to embrace digital currencies and blockchain technology,” PYMNTS wrote before that event.

“This strategy aims not only to attract a young and tech-savvy demographic but also to tap into the substantial financial resources of the crypto sector. By aligning with the interests of cryptocurrency enthusiasts, Trump and his party are seeking to leverage the political and economic potential of this burgeoning industry.”

The post Lawmakers Say Crypto Bill Passage Would Be Long Shot for 2024 appeared first on PYMNTS.com.

In a post on X Friday (Aug. 30), CEO Brian Armstrong said the cryptocurrency exchange had overseen its inaugural transaction between two artificial intelligence (AI) agents.

“What did one AI buy from another? Tokens! Not crypto tokens, but AI tokens (words basically from one LLM to another). They used tokens to buy tokens,” Armstrong wrote, adding a “mind blown” emoji.

“AI agents cannot get bank accounts, but they can get crypto wallets. They can now use USDC on Base to transact with humans, merchants, or other AIs. Those transactions are instant, global, and free.”

Armstrong added that this marks an “important step” in AIs performing useful work, arguing that AI agents currently “can’t transact to acquire the resources they need. … They don’t have a payment method to book you the plane ticket or hotel for your upcoming trip.”

The CEO invited companies working on AIs and large language models (LLMs) that might benefit from having an integrated crypto wallet to conduct payments to integrate Coinbase’s wallet.

“And if you are a company that sells a service — get ready for your shopping cart to be AI checkout enabled,” Armstrong added. “It turns out everyone benefits from having access to good financial services, including AIs! How big will the AI to AI economy be a few years from now?”

PYMNTS examined the future of cryptocurrency as a payment method last week, noting that in spite of substantial growth in crypto wealth, there are still major hurdles surrounding utility and scalability. The volatility of these digital assets can make them less appealing as a stable medium of exchange.

“Regulatory uncertainty also continues to cast a shadow over the adoption of crypto as a payment method,” that report said. “Governments and financial regulators around the world are still grappling with how to classify and regulate cryptocurrencies. This uncertainty makes businesses hesitant to embrace crypto payments, fearing potential legal and compliance risks.”

Another big challenge comes from scalability, the report added. Although blockchain technology presents a decentralized and secure way for carrying out transactions, it still struggles to handle the volume of transactions needed for mainstream payment systems.

At the same time, crypto has its own benefits that could translate into wider payments success.

“It’s important to know that crypto is not just bitcoin and doge and NFTs,” Solana Foundation Head of Payments Sheraz Shere told PYMNTS in May. “… Blockchains are really alternative rails for payments and financial assets.”

The post Coinbase Reports First ‘AI to AI’ Token Purchase appeared first on PYMNTS.com.

Today, those 10,00 bitcoin would be worth upward of half a billion dollars, highlighting the success of digital assets as a speculative store of value. In fact, a Tuesday (Aug. 28) report revealed that the population of crypto millionaires in the world soared 95% over the past year, while the population of bitcoin-specific millionaires grew 111% from 2023 to 2024.

The advent of bitcoin ETFs has played a crucial role in this wealth creation. These exchange-traded funds have made it easier for traditional investors to gain exposure to bitcoin without the need to directly purchase and store the digital asset. This has attracted a broader audience, from retail investors to institutional players, further driving up demand and, consequently, the price of bitcoin.

But against this backdrop of crypto’s growing financial influence and its investors’ affluence, it also highlights a lingering question: Can, or will, crypto deliver on its promise as a viable payment mechanism, especially when other digital payment innovations are rapidly evolving to meet the demands of future commerce?

Read more: Can Stablecoins Spark Crypto Adoption Across Retail and B2B Markets?

Crypto as a Payment Mechanism: Utility and Scalability Challenges

Despite the explosive growth in crypto wealth, the adoption of cryptocurrencies as a mainstream payment mechanism remains limited.

While bitcoin and other digital assets have made strides in being accepted by a growing number of merchants, significant hurdles remain in proving their utility and scalability — not the least of which is the same volatility that has created the rising cohort of over 170,000 crypto millionaires.

The inherent volatility of cryptocurrencies also makes cryptocurrencies less appealing as a stable medium of exchange. For businesses, accepting payment in a highly volatile asset introduces risk to their balance sheets, as the value of the payment can fluctuate dramatically between the time a transaction is made and when it is settled.

Regulatory uncertainty also continues to cast a shadow over the adoption of crypto as a payment method. Governments and financial regulators around the world are still grappling with how to classify and regulate cryptocurrencies. This uncertainty makes businesses hesitant to embrace crypto payments, fearing potential legal and compliance risks.

Scalability is another significant challenge. While blockchain technology offers a decentralized and secure way to conduct transactions, it currently struggles to handle the volume of transactions required for mainstream payment systems.

Network congestion, slow transaction times and high fees are common issues that need to be addressed before cryptocurrencies can compete with traditional payment systems on a global scale.

And, crucially, while the crypto sector works to overcome these hurdles, other digital payment innovations like digital wallets and embedded finance are rapidly capturing the market, particularly in terms of convenience, speed and user experience. These innovations are shaping the future of commerce and setting high standards that cryptocurrencies must now meet if they are to play a meaningful role in the payments ecosystem.

Read more: Halftime Report: 18 Payments Executives Share The Issues That Will Define The Rest of 2024

The Road Ahead for Crypto Payments

Research in “The Embedded Finance Ecosystem: Logistics and Wholesale Trade Edition,” a PYMNTS Intelligence and Carat from Fiserv collaboration, found that a majority of marketplaces (57%) are “highly interested” in further innovating their existing digital wallet offerings.

To compete with existing and emerging digital payment solutions, cryptocurrencies must offer a level of convenience that rivals or surpasses that of advances like digital wallets, embedded finance and real-time payments. This means not only improving the user experience but also expanding the acceptance network to include more merchants and service providers.

But crypto does have its own set of advantages that it can parlay into broader payments success.

“It’s important to know that crypto is not just bitcoin and Doge and NFTs,” Solana Foundation Head of Payments Sheraz Shere told PYMNTS in May. “… Blockchains are really alternative rails for payments and financial assets.”

And PYMNTS Intelligence finds that blockchain technology, the fundamental technology underpinning cryptocurrencies and digital assets, could have tremendous potential for use in regulated industries, such as finance and healthcare.

The post Crypto Is Minting Millionaires, but Its Payment Utility Remains Uncertain appeared first on PYMNTS.com.

That’s according to a report Monday (Aug. 26) by Bloomberg News, which noted that the move is designed to solve the payment troubles the country has been facing after more than two years of worldwide sanctions.

Sources told Bloomberg the trials will start Sept. 1, with the country using the National Payment Card System to swap between rubles and cryptocurrencies when testing payments and the exchange platform.

According to the report, Russian lawmakers adopted bills last month legalizing crypto mining and a framework for the testing of digital tokens for cross-border payments under supervision by the central bank. Russian President Vladimir Putin signed the bills into law on Aug. 8. 

Russian businesses have been facing increasing difficulties in paying foreign suppliers and getting paid for exported goods, following a move by the U.S. in June to broaden the criteria for sanctioning foreign banks working with Russia.

In the months leading up to Russia’s invasion of Ukraine – which triggered the sanctions – the country’s central bank had proposed a sweeping crypto ban.

Also Monday, PYMNTS examined the use of the stablecoins for streamlining cross-border transactions, writing that it is in the B2B sector where this idea holds particular promise. 

“It’s important to know that crypto is not just bitcoin and Doge and NFTs,” Sheraz Shere, head of payments at Solana Foundation, told PYMNTS in May. “… Blockchains are really alternative rails for payments and financial assets.” 

“An issue has been that the technology has not been user-friendly,” Shere added. “It’s all been designed by engineers … to be very tech-centric and not use case or UX centric.”

Traditional international payment methods like wire transfers can be slow, expensive and subject to various regulatory hurdles. But stablecoins offer a more efficient alternative with transactions that can be carried out almost instantaneously, with fewer intermediaries and lower fees.

And because stablecoins are pegged to a stable asset like the dollar, businesses can use them for transactions without needing to worry about currency fluctuations that could impact the final amount received or paid.

“People are rewiring their businesses around payments,” Thredd CEO Jim McCarthy told PYMNTS in April. “The winners in the future truly will understand that payments [are] at the middle of everything they do.”

The post Russia Rethinks Crypto Exchanges to Smooth Payments Obstacles appeared first on PYMNTS.com.

News broke Friday (Aug. 23) that Wyoming is reportedly developing its own U.S. dollar-backed stablecoin to be used for consumer payments. The Wyoming Stable Token could be launched as soon as in the first quarter of 2025. Now, observers are wondering whether stablecoins might serve as the best onramp for users to enter the digital asset space.

A few days earlier, on Wednesday (Aug. 21), Latin American eCommerce giant Mercado Libre launched a new U.S. dollar-pegged stablecoin in Brazil through its financial arm, Mercado Pago.

The stablecoin, called Meli Dollar, can be purchased and sold through the Mercado Pago app without incurring any transaction fees during the initial phase with the fee-free structure geared toward not only reducing the impact of the Brazilian Real’s currency fluctuations but also increasing the scalability of the asset.

Mercado Libre has been trying to integrate cryptocurrency solutions into its ecosystem for years, previously introducing Mercado Coin, a cryptocurrency used for purchases and cash back, on its platform in 2022 as part of its loyalty program, as well as integrating bitcoin, Ether and the Pax Dollar (USDP) stablecoin for payments.

Stablecoins, like the Meli Dollar or Wyoming Stable Token, can be integrated into existing digital wallets, making them easy to use for those already familiar with mobile payments. As more merchants begin to potentially accept stablecoins as a form of payment, users will have more opportunities to engage with digital assets in a way that feels familiar and secure. This could lead to a gradual increase in cryptocurrency adoption among end-users, including businesses that might otherwise have been hesitant to enter the market.

Read also: What CFOs Should Know About the Growing Use of Stablecoins

Bridging Gap Between Traditional Finance and Digital Assets in B2B

While Latin America rushes to innovate with crypto, the European Union’s landmark Markets in Crypto-Assets Act (MiCA) is forging ahead with regulating the stablecoin landscape.

It is in the B2B sector in particular where stablecoins — and their regulated use and policy frameworks — hold particular promise as a tool for streamlining cross-border transactions.

“It’s important to know that crypto is not just bitcoin and Doge and NFTs,” Sheraz Shere, head of payments at Solana Foundation, told PYMNTS in May. “… Blockchains are really alternative rails for payments and financial assets.”

“An issue has been that the technology has not been user-friendly,” Shere added. “It’s all been designed by engineers … to be very tech-centric and not use case or UX centric.”

Traditional methods of international payment, such as wire transfers, can be slow, expensive and subject to various regulatory hurdles. Stablecoins, however, offer a more efficient alternative. Transactions can be completed almost instantaneously, with lower fees and fewer intermediaries.

Because stablecoins are pegged to a stable asset, businesses can use them to conduct transactions without worrying about currency fluctuations that could affect the final amount received or paid.

“People are rewiring their businesses around payments,” Thredd CEO Jim McCarthy explained to PYMNTS in April. “The winners in the future truly will understand that payments [are] at the middle of everything they do.”

See also: Instant Payments Versus Stablecoins: The Race to Rule Real-Time Transactions

For example, a company in the United States could use a dollar-pegged stablecoin to pay a supplier in Europe. The transaction would be completed in minutes rather than days, with lower fees and no risk of currency exchange rate fluctuations. This not only improves cash flow management but also allows companies to operate more efficiently in a global marketplace.

The only requirement is for the stablecoin to adhere to the regulations of each country. That’s why the European Central Bank (ECB) is conducting exploratory work on new technologies for wholesale central bank money settlement (ntwCeBM).

“To fully leverage the potential of the evolving payments landscape and ongoing initiatives, the ECB is planning a special focus workshop on innovations in B2B payments and the role central bank money could play,” the ECB said in a statement. “The potential of private undertakings such as eMoney tokens (stablecoins), commercial bank money tokens (CBMT) and other, similar forms will also be discussed.”

A dedicated market contact group, the New Technologies for Wholesale settlement Contact Group (NTW-CG) has been established, the ECB said.

Still, on the consumer and retail side of things, the ECB’s digital euro stablecoin is facing pushback from Germany, whose citizens harbor growing concerns about privacy and the security of their money.

For all PYMNTS B2B coverage, subscribe to the daily B2B Newsletter.

The post Can Stablecoins Spark Crypto Adoption Across Retail and B2B Markets? appeared first on PYMNTS.com.

The state plans to launch the Wyoming Stable Token in the first quarter of 2025, CNBC reported Friday (Aug. 23).

“It is clear to me that digital assets are going to have a future,” Wyoming Governor Mark Gordon told CNBC at the Wyoming Blockchain Symposium in Jackson Hole. “The United States has to address this issue. Washington’s being a little bit stodgy, which is why Wyoming, being a nimble and entrepreneurial state, can make a difference.”

Advocates of the project the Wyoming stable token will provide a faster and cheaper way for individuals and businesses to transact, will create a new revenue stream for the state and may serve as a model for a stablecoin at the federal level, according to the report.

Gordon said the stablecoin will be transparent, fully backed by short-term Treasurys and dollar-dependent, per the report.

Wyoming has already been working to create a favorable regulatory environment for crypto, having passed more than 30 pieces of legislation related to that field since 2018, according to the report.

The state is currently vetting potential vendors and partners to provide an exchange, digital wallets and other technology needed for the stable token, per the report.

Wyoming aims to make the stablecoin a payment method for everyday use, Flavia Naves, a commissioner at the Wyoming Stable Token Commission, said in the report.

“When you walk into Cowboy Coffee in Jackson, Wyoming, and you want to buy your latte, there’s going to be their wallet there in Solana that you can use to buy your coffee with the Wyoming token,” Naves said, per the report.

Stablecoins are a type of currency designed to maintain a stable value by pegging their worth to a fiat currency, PYMNTS reported in April. Unlike traditional cryptocurrencies like bitcoin, which are notorious for their price fluctuations, stablecoins offer a level of stability that closely mirrors that of traditional currencies.

On the federal level, U.S. Sen. Kirsten Gillibrand, D-N.Y., and Sen. Cynthia Lummis, R-Wyo., introduced legislation to govern stablecoin use.

The post Wyoming Aims to Launch US Dollar-Backed Stablecoin in 2025 appeared first on PYMNTS.com.

The sector isn’t scared of spending big to get closer to it, a Wednesday (Aug. 21) report showed. Forty-eight percent of all corporate money contributed to date during the 2024 election cycle, about $248 million, has come from crypto firms.

This makes the industry the most dominant corporate political spender, per the report. The crypto political action committee (PAC) Fairshake and its affiliates have compiled a war chest from Web3 corporates, including Coinbase and Ripple, that sits at nearly $114 million, dwarfing the $26 million raised by second-place Koch Industries-backed Americans for Prosperity Action PAC.

The campaign spending comes against an industry backdrop where cryptocurrencies have evolved from a niche interest to a financial force, with a market capitalization that reached the trillions of dollars at its peak. However, this rapid growth has been accompanied by a patchwork of regulations that vary widely from country to country, and even within jurisdictions. The lack of uniformity has led to uncertainty, stifling innovation and deterring both investors and companies from fully committing to the crypto space.

It also comes on the heels of news Thursday (Aug. 22) that former FTX executive Ryan Salame — who pleaded guilty to campaign finance violations in 2023 and was sentenced to 7.5 years in prison — is asking a judge to enforce his plea deal, claiming that the government is not holding up its end of the bargain.

Read also: Crypto’s Three Priorities for 2024: Interoperability, Acceptance, Regulation

Crypto Companies Dominate Corporate Election Spending

The blockchain technology market is worth an estimated $19.7 billion. In the next eight years, that valuation could skyrocket to $943 billion.

However, the absence of clear regulations has created an environment where crypto businesses must navigate a maze of often contradictory rules. In the U.S., for example, different regulatory bodies such as the Securities and Exchange Commission, the Commodity Futures Trading Commission and the IRS have each taken different stances on how to classify and regulate cryptocurrencies. Is bitcoin a currency, a commodity or a security? The answer varies depending on which agency you ask.

The regulatory ambiguity forces companies to spend resources on legal advice and compliance, often at the expense of innovation. Startups, which are typically more agile and less financially robust than established companies, are particularly hard-hit. For many, the cost and risk associated with potential regulatory violations are too great, leading them to either pivot away from crypto-related activities or relocate to more crypto-friendly jurisdictions.

The strategic shift in political contributions from traditional sectors to crypto signifies a broader change in corporate America’s approach to election spending. The pivot reflects the crypto industry’s urgency in influencing policy directions amid an increasing desire for clarity around the regulatory decisions that could impact the future of digital currencies and blockchain technology in the United States.

“It’s important to know that crypto is not just bitcoin and Doge and NFTs,” Solana Foundation Head of Payments Sheraz Shere told PYMNTS in May. “… Blockchains are really alternative rails for payments and financial assets.”

See also: Fed Action Against Customers Bank Underscores Crypto’s Challenges

Achieving Regulatory Clarity

While the benefits of regulatory clarity for crypto are clear, achieving it is challenging. The rapid pace of innovation in the crypto sector means that regulators are often playing catch-up, trying to apply existing frameworks to new and evolving technologies. This can lead to regulations that are either too restrictive, stifling innovation, or too lenient, failing to provide adequate protection for consumers and investors.

Unlike traditional financial institutions, which are typically centralized and easy to regulate, many crypto projects operate on decentralized networks with no central authority. This makes it difficult for regulators to identify who is responsible for ensuring compliance and enforcing rules.

Crypto still needs to shake its association with the finance that tends toward the illicit. As recently as Wednesday, a group of hackers took over the McDonald’s Instagram account and used the fast-food giant’s account to promote a fake cryptocurrency that it dubbed “GRIMACE,” pocketing $700,000 from the scam.

Still, according to PYMNTS Intelligence, blockchain technology, the technical infrastructure enabling crypto, has potential for use in regulated industries, such as finance and healthcare.

The post Crypto’s 2024 Corporate Election Spending Dwarfs All Other Sectors appeared first on PYMNTS.com.