Does Nydia Velázquez Support Crypto?

Congressperson Velázquez's tweet from April 2025 reveals a concerning perspective on crypto and its role in Puerto Rico. She claims Puerto Rico will lose $4.5 billion by 2026 due to tax breaks for wealthy crypto investors, leading to rising costs and displacement of locals. Her proposed bill aims to close "loopholes" for digital assets and end Puerto Rico's status as a crypto tax haven. While presented as a measure to empower Puerto Ricans, this stance raises red flags for crypto advocates. It's important to understand the context: Puerto Rico has attracted crypto entrepreneurs and investors due to its favorable tax laws, leading to economic growth and job creation. Velázquez's bill, by targeting these very incentives, could stifle this burgeoning industry and harm the island's economy. Furthermore, the framing of crypto investors as exploiting loopholes is misleading. These individuals are operating within existing legal frameworks, and characterizing their actions as exploitative is a common anti-crypto tactic. The implication that crypto investment is inherently detrimental to locals ignores the potential benefits of blockchain technology and the financial opportunities it can create. This stance, scored a 0 (Very Against Crypto), reflects a misunderstanding of the potential of digital assets and a preference for traditional financial systems. It's crucial to advocate for balanced, sensible crypto regulations that protect consumers without stifling innovation. Puerto Rico's experiment with crypto-friendly policies could offer valuable lessons for other jurisdictions, and prematurely ending it would be a missed opportunity.