Major Crypto Advocates Are Poised to Become Policy Influencers

Recent debates on cryptocurrency tax rules in the US signal that crypto advocates are taking on a more active role in policymaking. This is especially true for tech moguls and high-profile investors who’ve reinforced their commitment to the nascent asset class on many occasions. As support for crypto-friendly policy grows stronger, they could become integral to the legislative process in Washington DC.

Major Crypto Advocates Could Play Vital Role in Policy Making

Not long ago, the American digital asset industry was thrown into chaos after lawmakers unveiled crypto taxation rules in the trillion-dollar infrastructure bill. The broad language used in the new provisions spurred crypto watchers, investors, celebrities, tech stalwarts, and many others into action as they united to demand amendments. 

In a tweet thread started by Coinbase CEO Brian Armstrong, Tesla CEO Elon Musk termed the regulations “hasty.” His sentiments were echoed by actor Aston Kutcher and Twitter CEO Jack Dorsey. 

Outside the public view, crypto lobbyists and businesses organized congressional outreach efforts and invited lawmakers for extensive discussions. Senators Pat Toomey, Cynthia Lummis, and Rony Wyden even extended their support to the industry and asserted that the proposed rules were “unworkable and onerous."

Despite its colossal attempts, the industry failed to make changes to the bill. Last week, the Senate gave bipartisan approval to the legislation and poured cold water on any hopes of revising the provisions. 

However, experts suggest that the unified effort wasn’t entirely unsuccessful. They believe that by illustrating its ardent support for digital assets, the crypto community has increased its standing in Washington and traditional finance. 

Crypto Lobbying Is on the Rise in the United States

According to Wall Street Journal, five crypto-focused companies and organizations have hired federal lobbyists over the last year. Moreover, many businesses have begun hiring advisers who have experience with Washington. 

In May, Coinbase welcomed former national security, commerce, and trade official Faryar Shirzad as its chief policy officer. Shirzad, who has also worked at Goldman Sachs, has spent several years in the federal government under both Democratic and Republican administrations.

Dorsey’s payments company Square also recruited former US Chamber of Commerce official Julie Stitzel as the Bitcoin policy lead for its digital wallet Cash App.

Jerry Brito, executive director of nonprofit crypto policy group Coin Center thinks that the industry is finally making the right moves in DC. He notes: