👛 Crypto companies are hiring top lawyers and lobbyists to keep regulators at bay
In case you needed another sign that cryptocurrency is here to stay: Lawyers are starting to get involved.
Since the dawn of Bitcoin more than a decade ago crypto markets have been the wild west: Regulations have been minimal, and the ethos of decentralization has pervaded. Crypto assets, for instance, have been classified by Deloitte as intangible assets because nothing else fits. But the U.S. government considers crypto a commodity and uses the CFTC for regulation. Now that some 25% of investors have a connection to crypto the government is more likely to increase its involvement.
So crypto companies are getting serious about the law: The number of lobbying contracts affiliated with crypto is already at 65, up from 20 in 2019, according to the New York Times. The industry filed a list of lobbying goals with the Biden administration earlier this year, asking for a “light regulatory approach.”
They may have reason to worry: Biden’s treasury secretary Janet Yellen has expressed concern about crypto, saying, “It is a highly speculative asset, and I think people should beware it is extremely volatile.”
The company Ripple is especially leading the way for the crypto legal age. Its general counsel has pushed back against an SEC investigation and raised awareness for others in the industry. An intervenor in the Ripple lawsuit told the NYT, “The industry needs to accept that good legislation and regulation is what is required, not no regulation.”