The topic of regulating and overseeing cryptocurrency has
gained momentum in American politics for multiple reasons. There is a rising
apprehension about the use of cryptocurrency for unlawful activities, such as
money laundering, terrorism financing, and tax evasion. Consequently, there is
a demand for stricter regulations and supervision to prevent such activities.
There is also an increasing curiosity about the potential
advantages of cryptocurrency, such as enhanced financial inclusion and better
cross-border payments. This has given rise to pro-crypto politicians who
endorse the growth and acceptance of cryptocurrency in the United States.
Increase in Crypto Lobbying
Firstly, in recent years, there has been a notable surge in
the use of cryptocurrencies and blockchain technology worldwide, leading to a
need for supportive regulatory frameworks. This trend is evident in the United
States, where the amount of money spent on lobbying related to cryptocurrencies
has skyrocketed for the past six years.
According to a report by Money
Mongers, there has been an increase of 922% in crypto lobbying expenditure in
the US since 2016. This significant spending indicates that organizations
involved in the cryptocurrency industry are investing heavily in efforts to
influence policymakers and shape public policy. The top spenders in 2022 were
Coinbase, Blockchain Association, and Robinhood, which are all prominent
players in the cryptocurrency space.
The fact that these companies are allocating large sums of
money for lobbying efforts suggests that they understand the importance of
regulatory clarity and consistency for the long-term success of the industry.
By influencing lawmakers and policymakers, they can help shape laws and
regulations that support their business models and promote growth and
innovation in the cryptocurrency industry.
It is important to note that regulation in the
cryptocurrency space remains highly fragmented and decentralized, with
different states adopting varying approaches. One state, Wyoming, has taken a
unique approach to cryptocurrency regulation by exempting the buying, selling,
issuing, or taking custody of payment instruments in the form of virtual
currency or receiving virtual currency for transmission from licensing as money
transmission under state law.
This move could attract more cryptocurrency
businesses and investors to the state. However, at the federal level, there is
still no consistent legal approach to…
