100 crypto lobbyists prepare for the fight of their lives as Congress resumes

Cryptocurrencies might be a scorching matter as the United States Congress resumes and the battle strains are drawn between lawmakers for and in opposition to the fledgling monetary trade.

But the Blockchain Association stories that greater than 100 crypto trade advocates are combating to assist strike the proper steadiness between safety and innovation.

The 118th U.S. Congress convened in Washington D.C. on Jan. 3. It’s scheduled to proceed till Jan. 3, 2025, throughout the remaining two years of President Joe Biden’s first time period.

The crypto trade is presently in the crosshairs following a number of high-profile meltdowns final 12 months, the largest being the collapse of FTX in early November.

In a Twitter thread on Jan. 3, the Director of Government Relations at the Blockchain Association, Ron Hammond, highlighted the challenges and alternatives for Congress on the day it resumed.

FTX founder Sam Bankman-Fried has gone from a political donation darling to public enemy primary on Capitol Hill. Hammond added:

“The downside for many in DC is that they equate FTX with the total crypto trade.”

The meltdown may provoke “once-in-a-decade laws” and there are already strong regulatory framework submissions such as the Lummis-Gillibrand invoice. The bipartisan invoice addresses company jurisdiction, stablecoin laws, banking, crypto taxes, and interagency coordination.

Hammond mentioned the first few months of Congress would deal with FTX although stablecoin regulation may even be a precedence.

“Smaller payments like stablecoins and spot market regulation have an opportunity of transferring this 12 months, however will seemingly want to attend until the mud settles on FTX each in the courts and the congressional hearings.”

The battle strains might be break up between pro-crypto Chair of House Financial Services Patrick McHenry and anti-crypto Chair of Senate Banking Sherrod Brown who took the excessive measure of suggesting a ban on crypto final month.

There are additionally proposals to manage crypto from the Agriculture Committees which advocate for the Commodity Futures Trading Commission (CFTC) to supervise laws.

Hammond additionally mentioned it’s seemingly Congress will sort out new matters this 12 months such as nonfungible tokens (NFTs), decentralized autonomous organizations (DAOs), and decentralized finance (DeFi) which have seen elevated curiosity as a result of enforcement actions final 12 months.

On the upside, he concluded crypto has a “robust bench in D.C. and continues to poach expertise from different industries on the advocacy, lobbying, and coverage entrance.”

A gaggle that previously numbered lower than a dozen individuals from CoinCenter, Coinbase, the Blockchain Association, and some different teams “has now turn out to be a community of 100+ coverage specialists,” which is a motive for optimism, he added.

Related: Four legislative predictions for crypto in 2023

On Jan. 4, Ripple CEO Brad Garlinghouse additionally mentioned he was “cautiously optimistic” for 2023. He added that no invoice is ideal and pursuing one shouldn’t stall Congressional progress in growing a regulatory framework.