Crypto Industry Flexes Influence in Washington
As the Biden administration prepares to roll out new cryptocurrency regulations, the crypto industry is actively asserting its influence in Washington.
Industry Impatient for Legislative Action
Despite recent wins, including the repeal of an SEC accounting rule, the crypto industry is pushing for more substantial legislative action. Industry leaders argue that time is critical and that the government should prioritize clear regulation.
Targeting Former Adversaries
Some crypto companies are taking steps to punish perceived enemies. Gemini, for example, has vowed not to hire MIT graduates due to the university's reinstatement of former SEC Chair Gary Gensler as a professor.
Crypto Hearings in Congress
Congress has held hearings where crypto supporters have expressed their grievances against the Biden administration's regulatory stance, particularly the alleged pressuring of banks to cut ties with crypto companies.
Republican Support for Crypto
New Republican leadership at the SEC has expressed a more favorable view of cryptocurrencies, promising a less aggressive regulatory approach.
Upcoming Legislation
Two pieces of legislation are expected to become law: one establishing regulations for stablecoin issuers, and another clarifying the classification of digital assets as securities or commodities.
Political Spending and Influence
The crypto industry has been heavily involved in political spending, contributing to electoral victories of crypto-friendly lawmakers. This spending has helped build support for pro-crypto legislation.
Internal Industry Disagreements
Despite a united front in advocating for favorable regulations, debates over specific proposals could expose divisions within the crypto community.
Challenges for Stablecoins
A report from JPMorgan has raised concerns about the reserve requirements proposed for stablecoins, potentially posing a challenge to Tether, the largest stablecoin.