Dramatic TV show between law and crypto in the US

In a hearing before the US Congress at the end of 2021, statesman Brad Sherman told the story of an old woman devouring animals that grew in size, so that they could eat those previously swallowed in the old woman’s stomach. He compares this parable with cryptos dethroning each other: Bitcoin can be replaced by Ethereum, then replaced by Dogecoin, then Hamster Coin, Cobra Coin, Mongoose Coin. carry).

In response to Sherman, the crypto community immediately minted a series of tokens that appeared in his keynote, the first being the Mongoose Coin (MONGOOSE).

The confrontation between crypto and the law has long been full of dramatic twists and turns, especially in the US, which is seen as a key front for the crypto policy battle. To the point where Ron Hammond, the Blockchain Association’s Director of Government Relations had to exclaim:

Why hasn’t this made a TV show yet?

From 2016 up to now, the “turbulence” between crypto and law can be turned into a four-season TV show.

Season 1 (2016-2018): Opening shots

This season was filmed in WeWork offices with two rising stars in the lobbying world, CoinCenter and Blockchain Association. For a nascent industry like crypto, these two institutions have been around the longest.

“If legislators have questions about Bitcoin, who do they call?” This is the question that Jerry Brito — who worked at the Mercatus Center for Free Markets at George Mason University — pondered in 2014. As a result, the Bitcoin-centric non-profit organization CoinCenter was born. The “war” they chose was mainly focused on constitutional issues (privacy, code is a free voice and why crypto is important and should be treated fairly).

Four years later, Blockchain Association (BA) — the leading trade association, backed by major crypto startups, was born. For example, BA has Ripple, Messari is a member, later Binance US also joined but that made Coinbase withdraw.

BA is fierce in its lobbying efforts, while finding a balance between members’ egos and affiliation — a challenge for any trade association, but perhaps particularly acute in the crypto sphere. It can be said that BA is a bright star in all four seasons of the TV show.

Policy-obsessed people with a focus on technology and privacy have spent days strategizing explaining complex crypto topics to members of Congress — people twice their age and private individuals. Capitol Hill members — people half their age

Ron Hammond Director of Government Relations of Blockchain Association

Season 2 (2019-2021): War

Season 2 takes place right after the announcement of Libra project of Facebook and ended with the infamous “infrastructure bill wars” episode.

One day at the end of October 2019, in a dark suit, Mark Zuckerberg — founder of the social networking giant, came to Capitol Hill to testify about the Libra crypto project. Facebook’s vision is to create a cryptocurrency that can be seamlessly transacted through their existing messaging platforms, as well as third-party wallets. Libra — intended to be a stablecoin pegged to a basket of fiat currencies — will come in handy for those unable to access banking.

In response to this ambition, lawmakers urged Facebook and its partners not to launch Libra — and indeed halt the entire development process — until the legal questions surrounding the project and its governance. it is resolved.

Dante Disparte, Circle’s Head of Policy, says that it was Libra that sparked the CBDC craze.

They are not angry with Facebook’s audacity, but jealous of its potential and want to take it for themselves

Dante Disparte, Chief Policy Officer at Circle

The climax of this season is when the entire industry comes together to try to defeat the crypto tax provision in the bipartisan infrastructure bill.

Specific details, in August 2021, the US Senate passed a huge infrastructure package, seriously investing in the construction of roads and bridges. But at the last minute, an unexpected industry was thrown into the fray: cryptocurrency — with a provision that could impose severe tax requirements on wallet developers and miners. Suddenly, crypto and some of its lobbyists face one of the biggest regulatory threats ever.

Advocacy groups and blockchain organizations were quick to channel the energy of the digital community into the fray. The Fight for the Future group and the Electronic Frontier Foundation prompted more than 40,000 calls to senators ahead of the bill’s final vote.

Even crypto-focused YouTubers and TikTokers pivot to policy advocacy, informing their followers about the bill and its impact on the industry. One TikTok user posted a video with the words: “Dance if one of our 87-year-old senators single-handedly destroys the economy over a $50 billion military dispute.” Congressman Richard Shelby with a proposal to amend crypto tax provisions.

The episode ended unhappily for the crypto community but turned out to be an optimistic signal.

It’s great to see that they can assemble so quickly and attract so many people to join. This is definitely a turning point for the industry and will hopefully lead to better policy in the future

Kristin Smith, CEO of Blockchain Association

Read more: China restricts crypto but leads the CBDC race

Season 3 (2022): The savior turns the villain

This season introduces a host of new characters, and none is more important than Sam Bankman-Fried — a name so popular he’s mostly known by his initials, SBF. He is hailed as the savior of the crypto space and has actively positioned himself before Congress and regulators in every corner of Washington, DC.

In the end, however, SBF turned out to be not the white knight for crypto but the villain of the season. The collapse of the crypto exchange he founded, FTX, and the subsequent contagion wiped out several major players in the industry.

It also left a third of US policymakers disappointed and ashamed for accepting donations from an alleged scammer.

Ron Hammond Director of Government Relations of Blockchain Association

37% National Assembly who received funds from FTX will now be among the lawmakers deciding how the US will regulate cryptocurrencies — and whether to follow the route the SBF has lobbied for.

Many of these are now making scathing comments about the recklessness of FTX members — and calling for close scrutiny of the industry. So as crypto regulation evolves, the industry may face politicians who feel they have been “stabbed” by digital asset advocates.

Congressman Jim Himes, who once received a donation from an FTX executive, told CoinDesk:

Shields are being erected. Crypto and industry players will hardly receive a lenient view

Read more: SBF White Knight falls off his horse

Season 4 (2023 – continuing): Join hands

This season is shaping up to be the most memorable, with drama in both the speaker race and crypto policy. Industry performance is at its lowest point in the entire show’s history as the damage from the FTX collapse still reverberates.

Relationships are tarnished, skepticism is encouraged more than ever, and in some cases cryptocurrencies are seen as politically toxic. The separation of powers in the US Congress presents an opportunity for the industry, but it will take negotiations, dedicated education, and political power to change anything.

Fortunately, these are familiar challenges facing the industry; Every step in crypto policy comes with a brutal, bruised punch, but that’s also what makes watching this tit-for-tat process so interesting.

Ron Hammond Director of Government Relations of Blockchain Association

When the lights came on, in one corner was Representative Patrick McHenry, now chairman of the House Financial Services Committee. He has expressed interest in market structure laws and parameters surrounding stablecoin issuers. Solving these two issues can help crypto get a lot of support from both sides.

In the other corner is Senator Sherrord Brown, McHenry’s polar opposite in the field of crypto. Although it is difficult for the two protagonists to find common ground on cryptocurrency policy, many of the promising bills introduced in the 117th Congress have been supported by bipartisan support. Perhaps this season will boost that prospect and this odd couple find a joint performing together.

Season 4 will also see the departure of many characters in Washington. As the new year progresses, cabinet ministers will leave, companies will weed out lobbyists, institutions will falter in a bear market, and policymakers will focus on more pressing concerns.

“Regardless of those comings and goings, crypto is always here for good. While the crazy daily news is what makes the field so appealing, crypto has also proven its ability to do so. his strong resilience with the protagonists working non-stop,” commented Ron Hammond.

This part will appear new characters such as former Treasury employee – Congressman French Hill and Rhodes scholar – Congressman Jim Himes. These members, and several others — with backgrounds in traditional finance, are said to possess the sharpest minds in the United States Congress.

While in season 1 and season 2 they approached crypto with marked skepticism, this season they have turned to issues that combine the two areas, such as regulation of stablecoins. Perhaps most importantly, they are heard and respected by the board, and can assist peers like McHenry and Brown in bringing crypto policy to the finish line.

As season 3 taught us, don’t go to Washington to get noticed or make yourself the center of the universe. The crypto industry isn’t just one person or one personality — it’s an ecosystem of individuals who fought to have their voices heard and are now working and interacting with each other.

Many crypto figures openly chat about policy proposals with the community on Twitter, participate in Discord debates, and advocate for digital rights in the metaverse. This is not standard lobbying and is not for everyone. But for those who like a challenge, believe in the potential of this technology to make a positive impact on society, and embrace the media storm — welcome to today’s hottest TV show. .