- Cryptocurrency Companies try to influence policymakers in Washington
- Lobbyist include many ex-officials from SEC
- Increasing efforts to Regulate Cryptocurrencies
As the scope of Cryptocurrency grows wider, Federal regulators are increasingly scrutinizing the modus operandi of cryptocurrencies.
Cryptocurrency companies are also not remaining silent and, according to a report in New York Times, are hiring lobbyists, lawyers, and consultants over fresh moves to regulate their operation.
Federal regulators accuse cryptocurrency platforms Of fraud
Late last year, federal regulators had investigated one of the world’s most popular cryptocurrency platforms. According to the regulators, the company is illegally selling $1.38 billion worth of digital money to investors. It was the beginning of frenetic activity as regulators tried to crack down on a nascent industry.
Cryptocurrency operators also enlisted lawyers and lobbyists to dive deeply into the Washington influence game.
The New York Times reports that one such company, Ripple Labs, had hired lawyers to take on the Securities and Exchange Commission and beyond in one of the first legal battles. The point of contention was the limits and requirements the government should set for trading and using digital currency.
Ripple, according to NYT, had hired two lobbyists in the past three months. It has also tasked a consulting firm staffed with former aides to Hillary Clinton and former President Donald J. Trump to help chart out a strategy in Washington.
The list does not end here. It also hired the services of Mary Jo White to take on the S.E.C. Mary Jo is the former chairwoman of the commission during the Obama administration.
Cushioning the impact
Cryptocurrencies are scrambling to modulate a more positive atmosphere in Washington before the seat becomes hotter. Cryptocurrency is slowly ushering in a revolution that will significantly impact the future financial markets.
The companies are trying to cushion the impact as the revolutionary industry draws increasing scrutiny from financial regulators, law enforcement officials, and lawmakers.
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.