Bitcoin News Today: Bitcoin PACs Mobilize $200 Million to Shape Pro-Crypto Legislation in U.S.

Bitcoin is escalating its influence beyond financial markets and into the political sphere, as a major push to reshape U.S. legislation surrounding cryptocurrency gains momentum. At the center of this movement is a political action committee (PAC) backed by prominent figures in the crypto industry, including figures with high-level political connections such as Bailey, a founder associated with Nakamoto Holdings and a reported close advisor to former U.S. President Donald Trump. The PAC is raising a potential $200 million to fund legislative campaigns and support pro-crypto candidates, signaling a strategic shift from defending Bitcoin’s role in finance to actively shaping its regulatory future [1].

The agenda of this political effort is ambitious. It includes the elimination of capital gains tax on Bitcoin, protection for open-source developers, and the promotion of policies that support self-custody of digital assets. The strategy involves identifying key leverage points within the political system and applying financial and grassroots pressure to influence lawmakers. The goal is not just to change tax rules but to fundamentally alter how digital assets are perceived and treated by the U.S. government [1].

This initiative is part of a broader trend in which crypto PACs are beginning to shift political outcomes. For instance, in Virginia, a million-dollar campaign backed by a crypto group helped secure a win for an underdog candidate, demonstrating the growing clout of the sector in electoral politics. With major crypto firms already investing heavily in political advocacy—such as the $130 million spent by the Fairshake PAC in the 2024 cycle—Bitcoin’s political strategy is no longer a fringe effort but a well-funded campaign with real legislative goals [1].

Critics, however, remain cautious. Some warn that using public company funds for political lobbying could expose firms to legal and shareholder-related risks. Others argue that removing capital gains tax on Bitcoin would unfairly advantage a small group of investors over others. Yet, proponents of the policy counter that such a move would encourage long-term holding and reduce speculative trading, which could, in turn, stabilize Bitcoin’s price and make it a more viable asset for long-term investment [1].

The momentum is not exclusive to the U.S. In the UK, concerns are rising that the country is falling behind in the global race to regulate and adopt digital assets. A former British chancellor has warned that without swift action, the UK risks losing its financial leadership position in the era of crypto and blockchain technology. The sentiment reflects a growing consensus among policymakers and analysts that digital assets are reshaping the global financial landscape and that governments must adapt or risk irrelevance [2].

As these efforts unfold, the line between financial innovation and political influence is blurring. Bitcoin’s transition from a speculative asset to a tool for political strategy underscores its growing significance—not just in the economy, but in the governance of economies. Whether this movement leads to legislative success or regulatory backlash, one thing is clear: digital assets are no longer just challenging traditional finance—they are redefining the rules of power itself [1].