With cryptocurrencies gaining sway through the global financial scene, governments have been working overtime to impose relevant legislation to keep key players in check.
However, in the United States, this appears to have backfired as cryptocurrency values across different tokens have risen considerably over the past two weeks. Plus, as the US Congress continues to dither over the stipulations of crypto-specific tax guidelines, numerous individuals and organizations have been swaying the balance in favor of the cryptocurrency industry.
Who is the cryptocurrency lobby?
Known as the “cryptocurrency lobby,” this group comprises congressional lobbyists, private individuals, trade organizations, and even PR experts who are helping the industry fight off regulations that may prove detrimental to its growth and development in the long run.
Indeed, cryptocurrency companies have wasted no time in showing Congress what exactly they’re capable of doing. Via social media channels, companies like Bitcoin and Binance as well as organizations like the Blockchain Association, rallied crypto-enthusiasts to the cause with real-time reportage of proceedings at the Senate.
According to Blockchain Association executive director Kristin Smith, Congress’ sudden hostility against the industry served not only as a wake-up call for those in the crypto sector. It is also seen as proof that the government considers the industry as an unexpectedly strong and driving force.
Cryptocurrency lobbyists note that lawmakers are intimidated by the rising influence of industry startups that have drawn in numerous investors to become the multi-billion (and multinational) firms they are today.
Cryptolobby gathering support
Indeed, a key issue that has the industry up in arms is a clause where cryptocurrency trading platforms will be required to report all digital transactions to the Internal Revenue Service (IRS.) The provision was included to raise around $28 billion for various infrastructure initiatives under the current administration and ensure that crypto traders pay their taxes.
Crypto advocates, however, have decried this tax provision as an industrial threat that would be detrimental to the further growth of decentralized finance (DeFi) services. Likewise, it would also bring in players who may be unable to comply with the mandatory reporting rules.
Fortunately for the cryptocurrency lobby, it has earned the support of a number of influential investors, including Jack Dorsey, CEO of online payment solutions company Square; top executives from venture capital firm Andreessen Horowitz; Tesla CEO Elon Musk who has been a staunch supporter, particularly for Bitcoin; and, surprisingly, KISS frontman Gene Simmons. Crypto firms are also enhancing their defenses, with some companies hiring highly qualified experts to serve as their policy and governance officers.
Industry analysts warn that, aside from regulatory activities throughout the world, the impending threat of unreasonable regulation will be just the first battle for cryptocurrencies in the United States. But firms are meeting the challenge head-on and are doing what they can to get ready.
