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100 Crypto Lobbyists Prepare for Deadly Battle to Reopen Congress

Delbert Williams IIBy No Comments3 Mins Read

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Cryptocurrencies will be a hot topic as the U.S. Congress reopens and the legislature draws a line between those who are for and against the fledgling financial industry.

However, the Blockchain Association reports that over 100 crypto industry advocates are fighting to strike the right balance between protection and innovation.

The 118th Congress of the United States convened in Washington DC on January 3rd. This is scheduled to last until his January 3, 2025, the last two years of President Joe Biden’s first term.

The cryptocurrency industry is currently in the crosshairs following several high-profile meltdowns, led by the collapse of FTX in early November last year.

In a January 3 Twitter thread, Ron Hammond, director of government relations at the Blockchain Institute, highlighted the challenges and opportunities for Congress on the day Congress reopened.

FTX founder Sam Bankman-Fried went from beloved political donor to the Capitol’s worst enemy. Hammond added:

“A lot of the problem with DC is that they equate FTX with the entire crypto industry.”

Meltdown could initiate “once-in-a-decade legislation,” with robust regulatory frameworks already in place, such as the Lummis-Gillibrand bill. The bipartisan bill addresses institutional jurisdiction, stablecoin regulation, banking, crypto taxes, and inter-agency coordination.

Hammond said the first few months of Congress will focus on FTX, but stablecoin regulation will also be a priority.

“Smaller bills like regulation of stablecoins and spot markets could move this year, but we will have to wait until the dust settles on FTX, both in court and in congressional hearings.”

The battle lines will be divided between the pro-cryptocurrency House Financial Services Committee Chairman Patrick McHenry and Senate Banking Committee Chairman Sherrod Brown, who took the extreme step of proposing a cryptocurrency ban last month.

There are also proposals to regulate crypto from the Agriculture Commission, which advocates for the Commodity Futures Trading Commission (CFTC) to oversee regulation.

Hammond also said Congress is likely to tackle new topics this year, such as non-fungible tokens (NFTs), decentralized autonomous organizations (DAOs) and decentralized finance (DeFi).

On the plus side, he concluded that cryptocurrencies “has a strong bench in Washington, D.C., and continues to draw talent from other industries in advocacy, lobbying, and policy.”

What was once a group of less than 12 people from CoinCenter, Coinbase, Blockchain Association, and several other groups “now has become a network of over 100 policy experts.” He added that this is the reason for his optimism.

Related: 4 Legislative Predictions for Cryptocurrencies in 2023

On Jan. 4, Ripple CEO Brad Garlinghouse also said he was “cautiously optimistic” for 2023. He added that no bill is perfect and pursuing legislation should not slow Congress’ progress in developing a regulatory framework.