Wednesday, January 19

Crypto’s $5 million corporate lobby for good US regulation | Bitcoin Portal

According to an article on the site The EconomistIn the first nine months of 2021, the crypto industry spent $5 million lobbying the US Senate, half of which was spent in the third quarter alone, reaching a quadrupled amount spent over the same period in 2020.

Coinbase was one of the biggest supporters of the cause, spending $625 thousand in the third quarter. Jack Dorsey’s Block (formerly known as Square) has spent more than $1.7 million on lobbying since April 2020.

These initiatives were not in vain.

On Wednesday (8), top executives from Coinbase, Circle, FTX and three other crypto industry leaders, attended in Congress to argue the growing importance of crypto and crypto regulation in a five-hour hearing.

Some people in Washington, the US capital, have already started storing crypto. Cynthia Lummis, a senator from Wyoming, has between $100,000 and $250,000 in bitcoin (BTC). At least four other republicans they also have investments in crypto.

Such adherence to crypto may signal a change of heart in Washington, but radical regulations present a very different picture.

In November, Joe Biden passed an infrastructure bill for $1.2 trillion which incorporates crypto escrow services such as Coinbase and Binance US into the legislative definition of “broker” (person or company that acts as an intermediary between an investor and a securities brokerage), meaning, soon, these companies will have to provide the federal government with specific forms listing the names and addresses of everyone who trade crypto.

Crypt: global law and order

Compared to the US, other countries have taken a much firmer stance in terms of crypto regulation, with some even launching an outright ban.

Indian regulators, for example, have a rather fickle relationship with the industry.

In 2018, the Reserve Bank of India (or RBI) issued a ban on banks dealing with crypto. However, it was nullified in March of this year by the country’s supreme court, but the RBI insisted that it was still quite anti-crypto.

In April, Turkey’s central bank also banned cryptocurrency payments, despite the country having one of the highest uses of crypto per capita of the world.

In May, three payment companies in China reiterated its support for the country’s 2017 central bank ban on financial institutions trading crypto. In the summer, China started a strict repression to crypto mining operations in its territory.

Still, given the fact that Germany’s new coalition expects crypto to be fundamental in the country’s technological and economic development, as well as the European Union’s draft regulatory framework for crypto, it appears that the western superstates of the US and Europe will have relatively permissive attitudes towards crypto.

This entire lobby seems to be working.

*Translated and edited by Daniela Pereira do Nascimento with permission from Decrypt.co.



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