Date: 27-05-2024
In a new development, the influence of cryptocurrency has reached the halls of power in Washington, D.C., attracting the interest of investors and lawmakers both. With an estimated $149 million spent over the last four years, bitcoin companies and investors have actively participated in creating rules, assisting supportive candidates in Congress, and defending against potential threats. This coordinated campaign resulted in a House vote last week that reduced federal control of the struggling industry.
Leading corporations such as Coinbase and Ripple, who have faced claims of breaking investor protection rules in recent legal battle brought by the federal government, have spared no expense in their efforts to change the regulatory landscape. These and other large cryptocurrency corporations have attempted to change existing legislation to better reflect their interests through a costly and extensive lobbying campaign.
Since the beginning of 2021, the cryptocurrency industry has spent more than $60 million influencing Congress. Data from The Washington Post, OpenSecrets, and Public Citizen illustrate the industry's massive lobbying activities. This enormous investment has paid off, as proven by the passage of the first major cryptocurrency legislation in either chamber of Congress. The proposed bill proposes transferring some federal oversight of cryptocurrencies from the Securities and Exchange Commission (SEC), which is known for its stringent regulations, to the Commodity Futures Trading Commission (CFTC), which is perceived by some as more lenient due to resource constraints.
The push for less restrictions originates from the assumption that excessive control might discourage innovation and limit the cryptocurrency industry's growth potential. Advocates urge for a more balanced approach that encourages responsible innovation while protecting against fraudulent activity and market manipulation.
However, critics of the cryptocurrency business are concerned about its inherent volatility and the hazards it brings to investors. They argue that greater regulation and clearer norms are required to protect consumers and the integrity of the financial system.The influx of cryptocurrency wealth into Washington has sparked the interest of Congress, needing a closer assessment of existing restrictions. The huge financial expenditures made by cryptocurrency companies and investors have driven a lobbying campaign to change the regulatory landscape in their favor. As lawmakers investigate less severe laws, they must strike a difficult balance between encouraging innovation and protecting investors. The outcomes of these discussions will have far-reaching consequences for the future of cryptocurrency in the United States.
The push for less restrictions originates from the assumption that excessive control might discourage innovation and limit the cryptocurrency industry's growth potential. Advocates urge for a more balanced approach that encourages responsible innovation while protecting against fraudulent activity and market manipulation.
However, critics of the cryptocurrency business are concerned about its inherent volatility and the hazards it brings to investors. They argue that greater regulation and clearer norms are required to protect consumers and the integrity of the financial system.The influx of cryptocurrency wealth into Washington has sparked the interest of Congress, needing a closer assessment of existing restrictions. The huge financial expenditures made by cryptocurrency companies and investors have driven a lobbying campaign to change the regulatory landscape in their favor. As lawmakers investigate less severe laws, they must strike a difficult balance between encouraging innovation and protecting investors. The outcomes of these discussions will have far-reaching consequences for the future of cryptocurrency in the United States.
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