U.S. cryptocurrency companies want better laws in place for the industry, and they won’t just wait and die. A new report shows that crypto companies have stepped up lobbying in Washington this year as Bitcoin becomes a mainstream asset class. However, there are some issues that are hindering their progress, including the increase in ransomware attacks related to BTC.
Joe Biden’s Government Committed In Regulating Cryptocurrency
The United States is lagging behind other major economies in terms of crypto regulation. Despite being a global leader in finance and technology, it still lacks the basic laws for a fast-growing industry. However, Joe Biden’s government seems intent on eventually regulating cryptocurrencies. From Treasury Secretary Janet Yellen to SEC chairman Gary Gensler, many industry regulators have built crypto into their plans.
To drive this process forward and ensure it benefits the wider ecosystem, many crypto companies are spending huge sums of money to attract top executives. A report from The Hill reveals that Ripple, Coinbase, and Jack Dorsey’s Square are among the people running the work.
Christine Smith, executive director of the Blockchain Association, told the media:
“The explosive growth of the crypto industry must be matched by nimble, responsive, pro-growth laws and regulations, which do not get achieved without sustained engagement with members of Congress, regulatory agencies, and members of the administration.”
The regulators most targeted by lobbyists are the Internal Revenue Service and the Securities and Exchange Commission.
Ripple Invests a Lot on Lobbying Against the Lawsuit Filed by the US SEC
If regulators implement supportive policies, every crypto business in the United States will see tremendous benefits. However, for some people, the benefits are greater than for others. Ripple will be one of the biggest beneficiaries, and the company’s future depends entirely on the lawsuit with securities regulators.
In December last year, the US Securities and Exchange Commission sued Ripple, alleging that it had seriously violated securities regulations. Since then, the two have been on trial to split them equally. In addition to his excellent legal defense, however, Ripple responded by more than doubling its lobbying budget.
Hill announced that the company spent $260,000 on lobbying in the first quarter of this year. That’s an increase of $100,000 over the same period last year, which proves the company believes it will have an impact on its case. In February, Ripple hired a Washington lobbying firm headed by former Texas representative Michael Conaway.
Coinbase also partnered with financial giant Fidelity and crypto venture capital firm Paradigm in April to create a new lobby. It’s called the Crypto Innovation Council and is designed to counter Washington’s criticism of cryptocurrencies.
Fred Erhsam, the co-founder of Paradigm, stated:
“We are focused on separating fact from perception in the crypto space through government and, more broadly, education resources, which is critical to helping regulators understand crypto’s ability to spur economic growth.”
He added:
“One of CCI’s core principles is to work closely with policymakers to correct misinformation on cryptocurrency and discuss our common ground creating more financial opportunities for people around the world.”
