Crypto’s legitimacy and adoption have increased in recent years, and along with the uptick in use, the tech has become a topic of political divisiveness, resulting in a perception of partisanship — especially in the United States.
Speaking to Cointelegraph, Jonathan Jachym, the Global Head of Policy at U.S.-based crypto exchange Kraken, said he doesn’t think crypto is partisan and that the situation is far more nuanced.
He says crypto tech is fundamentally about financial empowerment, the ownership of assets and the decentralization of power structures.
“These are non-partisan issues which legislators across the globe face daily as their constituents navigate the challenges of the existing financial system,” Jachym said.
“Technology can be used to build a fairer, trustless, apolitical financial system, which is more efficient, transparent and secure for everyone. Now is the time to embrace crypto,” he added.
Nearly even split of crypto support among politicians and voters
According to Coinbase’s Legislative Portal, which tracks U.S. politicians who have made positive statements about crypto, there is a healthy number of crypto supporters in Congress on both sides of the political aisle, with 26 Republicans and 22 Democrats in the House of Representatives voicing support.
In the Senate, it’s slightly skewed toward the right, with 24 Republicans and only 11 Democrats making positive statements about crypto. Support for crypto among voters also appears to be a close split between the left, right and independents.
Jachym believes bad actors have sown division in the space, but overall he says crypto itself remains an inclusive, transformative technology with the potential to improve lives.
“This is why, regardless of the political consensus of their populous, many developed economies are advancing bespoke regulatory regimes for crypto assets,” he said, adding, “For example, at the state level within the United States, both ‘red’ and ‘blue’ states have made meaningful progress toward workable frameworks for crypto.”
Bipartisan support for crypto already happening
There have already been some examples of bipartisanship among politicians with forming the Congressional Blockchain Caucus on Sept. 26, 2016, through cooperation by Democrats and Republicans.
The blockchain caucus was created to study blockchain tech and the role Congress can play in its development, and according to its website, the current four co-chairs are two Republicans and two Democrats.
Both parties also appear to be happy accepting monetary donations from the crypto industry.
Bradley Allgood, the co-founder and CEO of U.S.-based blockchain development and fintech company Fluent Finance, told Cointelegraph that he doesn’t consider crypto a partisan issue but does believe the tech has been drawn into political discussions and power plays.
“A fundamental aspect of crypto — its inherent political neutrality and its role in fostering innovation — has found resonance in certain political factions, notably among those who favor deregulation and open markets,” he said.
“Contrarily, some elements of the current administration and regulators have adopted an adversarial stance toward crypto, purportedly to protect traditional institutions and maintain control over monetary mechanisms,” Allgood added,
However, Allgood says he firmly believes that the tech and the ideals it represents, such as decentralization, transparency and individual freedom, are far removed from the political squabbles of our time. He said:
“I must emphasize: each individual cryptocurrency is in and of itself the product of human intention and does carry inherent political bias.”
“The policies and parameters which govern individual cryptocurrencies — for example, how consensus is achieved on-chain, how validators are rewarded for their services, and inflation schedules — attract certain types of users and repel others,” he added.
He says crypto isn’t just for one political camp; it’s a technology that goes beyond political boundaries and has the potential to impact everyone, bringing perks such as financial inclusion, lower transaction costs and more transparency to the table.
Miller characterizes crypto as a “game-changer that can revolutionize finance,” which is why he says regulators, policymakers, and the industry must work together to find the right balance between protecting consumers and fostering innovation.
“We need an environment that encourages responsible innovation so we can unlock crypto’s full potential,” he said.
“The more we understand the real-world advancements facilitated by cryptocurrency, the better equipped we are to address practical and accessibility concerns, thus promoting broader adoption.”
The idea of a wealth tax has raised its head – yet again – as the government attempts to balance its books.
Downing Street refused to rule out a wealth tax after former Labour leader Lord Kinnock told Sky News he thinks the government should introduce one.
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Lord Kinnock calls for ‘wealth tax’
Sir Keir Starmer’s spokesman said: “The prime minister has repeatedly said those with the broadest shoulders should carry the largest burden.”
While there has never been a wealth tax in the UK, the notion was raised under Rishi Sunak after the COVID years – and rejected – and both Harold Wilson’s and James Callaghan’s Labour governments in the 1970s seriously considered implementing one.
Sky News looks at what a wealth tax is, how it could work in the UK, and which countries already have one.
Image: Will Chancellor Rachel Reeves and Prime Minister Sir Keir Starmer impose a wealth tax? Pic: PA
What is a wealth tax?
A wealth tax is aimed at reducing economic inequality to redistribute wealth and to raise revenue.
It is a direct levy on all, or most of, an individual’s, household’s or business’s total net wealth, rather than their income.
The tax typically includes the total market value of assets, including savings, investments, property and other forms of wealth – minus a person’s debts.
Unlike capital gains tax, which is paid when an asset is sold at a profit, a wealth tax is normally an annual charge based on the value of assets owned, even if they are not sold.
A one-off wealth tax, often used after major crises, could also be an option to raise a substantial amount of revenue in one go.
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Wealth tax would be a ‘mistake’
How could it work in the UK?
Advocates of a UK wealth tax, including Lord Kinnock, have proposed an annual 2% tax on wealth above £10m.
Wealth tax campaign group Tax Justice UK has calculated this would affect about 20,000 people – fewer than 0.04% of the population – and raise £24bn a year.
Because of how few people would pay it, Tax Justice says that would make it easy for HMRC to collect the tax.
The group proposes people self-declare asset values, backed up by a compliance team at HMRC who could have a register of assets.
Which countries have or have had a wealth tax?
In 1990, 12 OECD (Organisation for Economic Co-operation and Development) countries had a net wealth tax, but just four have one now: Colombia, Norway, Spain and Switzerland.
France and Italy levy wealth taxes on selected assets.
Colombia
Since 2023, residents in the South American country are subject to tax on their worldwide wealth, but can exclude the value of their household up to 509m pesos (£92,500).
The tax is progressive, ranging from a 0.5% rate to 1.5% for the most wealthy until next year, then 1% for the wealthiest from 2027.
Image: Bogota in Colombia, which has a wealth tax
Norway
There is a 0.525% municipal wealth tax for individuals with net wealth exceeding 1.7m kroner (about £125,000) or 3.52m kroner (£256,000) for spouses.
Norway also has a state wealth tax of 0.475% based on assets exceeding a net capital tax basis of 1.7m kroner (£125,000) or 3.52m kroner (£256,000) for spouses, and 0.575% for net wealth in excess of 20.7m kroner (£1.5m).
Image: Norway has both a municipal and state wealth tax. Pic: Reuters
The maximum combined wealth tax rate is 1.1%.
The Norwegian Labour coalition government also increased dividend tax to 20% in 2023, and with the wealth tax, it prompted about 80 affluent business owners, with an estimated net worth of £40bn, to leave Norway.
Spain
Residents in Spain have to pay a progressive wealth tax on worldwide assets, with a €700,000 (£600,000) tax free allowance per person in most areas and homes up to €300,000 (£250,000) tax exempt.
Image: Madrid in Spain. More than 12,000 multimillionaires have left the country since a wealth tax was increased in 2022. Pic: Reuters
The progressive rate goes from 0.2% for taxable income for assets of €167,129 (£144,000) up to 3.5% for taxable income of €10.6m (£9.146m) and above.
It has been reported that more than 12,000 multimillionaires have left Spain since the government introduced the higher levy at the end of 2022.
Switzerland
All of the country’s cantons (districts) have a net wealth tax based on a person’s taxable net worth – different to total net worth.
Image: Zurich is Switzerland’s wealthiest city, and has its own wealth tax, as do other Swiss cantons. Pic: Reuters
It takes into account the balance of an individual’s worldwide gross assets, including bank account balances, bonds, shares, life insurances, cars, boats, properties, paintings, jewellery – minus debts.
Switzerland also works on a progressive rate, ranging from 0.3% to 0.5%, with a relatively low starting point at which people are taxed on their wealth, such as 50,000 CHF (£46,200) in several cantons.
The Chinese owner of British Steel has held fresh talks with government officials in a bid to break the impasse over ministers’ determination not to compensate it for seizing control of the company.
Sky News has learnt that executives from Jingye Group met senior civil servants from the Department for Business and Trade (DBT) late last week to discuss ways to resolve the standoff.
Whitehall sources said the talks had been cordial, but that no meaningful progress had been made towards a resolution.
Jingye wants the government to agree to pay it hundreds of millions of pounds for taking control of British Steel in April – a move triggered by the Chinese group’s preparations for the permanent closure of its blast furnaces in Scunthorpe.
Such a move would have cost thousands of jobs and ended Britain’s centuries-old ability to produce virgin steel.
Jingye had been in talks for months to seek £1bn in state aid to facilitate the Scunthorpe plant’s transition to greener steelmaking, but was offered just half that sum by ministers.
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British Steel has not yet been formally nationalised, although that remains a probable outcome.
Jonathan Reynolds, the business secretary, has previously dismissed the idea of compensating Jingye, saying British Steel’s equity was essentially worthless.
Last month, he met his Chinese counterpart, where the issue of British Steel was discussed between the two governments in person for the first time.
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Inside the UK’s last blast furnaces
Jingye has hired the leading City law firm Linklaters to explore the recovery of hundreds of millions of pounds it invested in the Scunthorpe-based company before the government seized control of it.
News of last week’s meeting comes as British steelmakers face an anxious wait to learn whether their exports to the US face swingeing tariffs as part of US President Donald Trump’s trade war.
Sky News’s economics and data editor, Ed Conway, revealed this week that the UK would miss a White House-imposed deadline to agree a trade deal on steel and aluminium this week.
Jingye declined to comment, while a spokesman for the Department for Business and Trade said: “We acted quickly to ensure the continued operations of the blast furnaces but recognise that securing British Steel’s long-term future requires private sector investment.
“We have not nationalised British Steel and are working closely with Jingye on options for the future, and we will continue work on determining the best long-term sustainable future for the site.”