One of the most powerful lobbying groups in crypto, Blockchain Association, announced the raising of $4 million from its founders. The funds will go to strengthen the capabilities of the lobbying group during the consideration by the US Congress of laws directly affecting the regulation of the cryptocurrency industry.
Kraken Bitcoin exchange and Barry Silbert’s Digital Currency Group each allocated $1 million, Filecoin Foundation – twice the amount. The latter promised to send another $2 million if the Blockchain Association is successful in attracting external financing in the same amount.
Kristin Smith, the head of the association, said in an interview with CoinDesk that they want to move from reacting to proactively promoting the interests of the industry. Moreover, it should be a continuous campaign. “I feel like we’re finally getting the pieces on the chessboard that we need to win, and I’m really excited about it,” she said.
Educate about the benefits and potential of digital assets
The funds will go to intensify efforts to educate politicians and legislators about the benefits and potential of digital assets. Furthermore, the non-profit organization will increase its staff for additional events.
The Blockchain Association is confident that they will be able to change the legislative vector towards the protection of cryptocurrencies. At the moment, employees are focused on changing the definition of the term “broker” in terms of infrastructure; interacting with the U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler regarding the application of securities laws; as well as forming a policy on stable coins and combating money laundering.
Fixing poorly developed standards and ensuring their compatibility
Earlier, the Blockchain Association supported the initiative of a group of congressmen to change the definition of a broker in the infrastructure plan. Depending on the interpretation, miners and node operators in blockchains, wallet developers; liquidity providers in decentralized finance (DeFi) protocols and other non-custodial players may be required to report to the Internal Revenue Service (IRS) on the activities of their users.
“The infrastructure plan threatens to push innovators and entrepreneurs abroad. This would leave the US as a passive observer of a rapidly developing industry. We can fix poorly developed standards and ensure their compatibility with how the new technology actually works”. Representative Patrick McHenry (R-N.C.) explained.
In addition, Coin Center, Crypto Council for Innovation, Electronic Frontier Foundation; National Taxpayers Union, Association for Digital Asset Markets and other organizations supported the initiative.