The debate of whether cryptocurrencies are fit for mainstream use or not has been going on for ages now, and as it turns out, we may have to put up with such for much longer still. Recently, several crypto advocacy groups in Washington, DC, have reportedly been intensely convincing policymakers and regulators away from the adverse notion that cryptos are mainly used for illegal activities. While this may be nothing new, with the threat of additional regulatory omission just within the horizon, this may just be their most significant battle to date.
The leading pro-crypto group in DC, Coin Center, has been preparing for such for quite a while now by raising money from several institutions and wealthy personalities. This includes the largest digital asset management firm in the world, Grayscale, and CEO of social media giant Twitter, Jack Dorsey, who committed to $2 million and $1 million, respectively.
On the other hand, the Blockchain Association has purportedly bolstered its ranks to now 34 members in preparation for a grueling lobbying legal battle against the newly proposed bottleneck regulations. The Association’s director, Kristin Smith, states that the group – as a whole – is severely concerned that the federal regulators may put their foot down on cryptos without even realizing what it is they are really afraid of. She adds that such misplaced fears could excessively hinder the growth of the industry.
Smith then referenced the recently submitted regulatory proposals of the Treasury Department and Financial Action Task Force (FATF) to upsurge crypto market surveillance due to the increasing number of illicit activities recently associated with it. Although the proposal’s ultimate goal is aligned to prevent even further misuse, Smith believes that this isn’t the right move as it would only place more burdens on blockchains and investors. Notably, the aforementioned proposals could potentially be finalized this year.
Coinbase and Square forms the Crypto Council for Innovation
Perhaps in response as well on the looming threat of further regulatory stranglehold, crypto industry mainstays, Coinbase and Square, spearheaded the formation of a new alliance in the hopes of better acclimating policymakers and regulators towards the real essence of cryptocurrencies. This new group would be called the Crypto Council for Innovation (CCI) and are notably joined by some of the major names in the crypto space, including Fidelity and Paradigm.
As per the CCI’s official website, effective communication between both parties is necessary to segregate fact from perception regarding cryptos, and they are more than willing to talk. The website further reads that the CCI supports institutions and governments worldwide in their respective efforts to provide responsible regulations over cryptos in a way that does both parties well.