SNEAK PEEK

• Lobbyists intensify efforts to shape crypto legislation.
• Democrats are crucial players in crypto regulation.
• Balancing Innovation and regulatory oversight.

US crypto lobbyists have embarked on a fresh legislative push, specifically targeting Democratic lawmakers, according to a new Reuters report. The cryptocurrency world continues to enthrall both investors and regulators. As the business grows in popularity, the necessity for clear and thorough laws becomes more pressing. 

Subsequently, crypto companies ramped up their lobbying efforts on Capitol Hill to get support for legislation that would rein in the agency and provide clear regulations for the industry, following Securities and Exchange Commission (SEC) pressure. The Blockchain Association, Chamber of Digital Commerce, Crypto Council for Innovation, and Coinbase Global are engaging with Congress to gain unanimous support for a draft law before a critical vote.

The upsurge in regulatory scrutiny that crypto businesses are facing in Washington has resulted in an expansion of the industry and a sense of urgency within the crypto lobby. Recent enforcement actions by the SEC against high-profile companies like Coinbase and Binance have further motivated industry representatives to educate Congress on the complexities and potential of cryptocurrencies.

There is a growing debate over the SEC’s jurisdiction over cryptocurrency enterprises. They believe that cryptocurrencies are a commodity rather than a security. They continue by stating that Congress should create laws to make this clear. Lobbyists are focusing on a draft measure for debate by Patrick McHenry, Republican chair of the House Financial Services Committee, and Glenn Thompson, Republican chair of the House Agriculture Committee.

Despite skepticism from some Democrats, crypto lobbyists are targeting key members on the Financial Services and Agriculture committees, such as Maxine Waters and David Scott, to gain support for a bill that aims to protect American innovation and jobs. The proposed bill has faced criticism for potentially weakening the SEC’s regulatory powers, with Scott expressing concerns about its cumbersome framework and potential for instability and fraud.