A Texas senator has proposed accepting cryptocurrencies at the Capitol. Will officials go along with it?
Texas Republican Senator Ted Cruz is pushing for the US Congress to start accepting crypto directly in its main building, i.e. the Capitol. In doing so, the politician has decided to focus on details that could appeal to Republicans and Democrats alike: Cruz wants to allow food and snack payments for cryptocurrencies. He introduced a resolution this week that would only allow vending machines and catering contractors that accept cryptocurrency as a means of payment at the Capitol. We tell you more about the event.
It’s not the first time that cryptocurrency-related initiatives from US politicians have been heard this week. Earlier, Republican Senator Wendy Rogers proposed recognizing Bitcoin as official tender in the state of Arizona.
US Senate
Apparently, such a gesture was only a sign of support from the politician. After all, the U.S. Constitution prohibits the recognition of new payment instruments within specific states. Accordingly, the prospects of such an idea in advance are practically nil.
Where Bitcoin will be accepted
According to Decrypt’s sources, if the resolution passes, the federal agency Architect of the Capitol, the secretary of the Senate and the chief administrator of the House of Representatives will have to bring in firms that accept cryptocurrencies for selling food in vending outlets and vending machines.
Senator Ted Cruz
The text of the resolution is not yet available on the Congress website. Accordingly, it is unknown what the potential cost of implementing the measure is, or whether the resolution would require contractors to accept payment in certain cryptocurrencies. Most likely, if the proposal succeeds, officials will limit themselves to Bitcoin as the most prominent cryptocurrency.
Senator Ted Cruz has long been a politician who supports the development of the digital asset industry. At the same time in Texas, Bitcoin mining has reached new heights in terms of business cash flow in recent years – especially after the loss of Chinese dominance in the field. By the end of August, Cruz had visited the largest mining hub in Texas, which he reported on his Twitter account with the following message
Today I had the pleasure of visiting North America’s largest crypto farm in Rockdale! I’m proud to be leading the fight for the crypto industry in the Senate. Texas will continue to be a hub for crypto innovation!
Ted Cruz on a crypto farm in Texas
Cruz is also on the list of officials who have provided information about Bitcoin purchases through their financial disclosures. His statements show that the official spent between $15,001 and $50,000 on investments in Bitcoin through the River Financial exchange almost a year ago.
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Generally, it’s not just government officials who buy crypto, but also US institutional organisations, i.e. companies with big capital. At least 85 percent of recent Bitcoin purchases have been made by them, Matrixport’s analysts concluded in a recent report.
According to Marcus Thielen, head of research, the data published by the analysts shows that institutionalists are not “abandoning cryptocurrencies”. Their activity also indicates that crypto could “very soon” enter a new global bullish trend, Cointelegraph reported.
As a reminder, the price of Bitcoin has already risen 39 per cent since the beginning of this year alone. As Valkyrie analysts point out, BTC has risen at such or greater scale in a month only ten times since 2014. That said, the experts note that this trend has usually resulted in a good financial performance over the next year. Here is their table that confirms this information.
Bitcoin exchange rate gains on a month-to-month basis
But how did the experts manage to establish who buys the most bitcoins? The Matrixport study focused on the time of day when the most transactions are made with BTC. As it turned out, bitcoins are actively bought during trading hours on US stock exchanges, which means that residents of that region are most often responsible for such transactions.
However, the cryptocurrency itself is traded around the clock without any restrictions. Consequently, the data may not be completely accurate.
If Bitcoin is most actively bought by institutional buyers, the prospect of a new bullish trend may well be a reality for the foreseeable future. Recall, before the next wave of BTC growth, it is large investors who buy first, and then all the rest pull up with them. Well, the least determined investors are usually the last in line and essentially buy coins that are sold by the most experienced traders at the end of a bullish trend.
We believe that such initiatives by US politicians are important even if they lead to nothing. In this way, officials are sending a clear message to other cryptocurrency enthusiasts and making the latter popular. Still, many politicians enjoy the trust of their constituents, which means such an idea could be a reason for some of them to become familiar with the world of digital assets. And whether cryptocurrencies will be accepted in the Capitol building - time will tell.
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