Get ready for Big Bitcoin: the cryptocurrency sector opens a lobbying arm

The price of bitcoin may be lower than last year. But industry officials do not expect the next rise in investor demand to launch a charm offensive against federal lawmakers and regulators who have been interested in cryptocurrencies.

Tech veterans and a number of large-scale cryptocurrency companies said on Tuesday that they formed the Blockchain Association, the first lobbying group in Washington representing entrepreneurs and investors who are developing the technology behind Bitcoin.

Companies such as Coinbase and Circle, which exploit some of the world's most popular virtual currency exchanges, as well as start-up Protocol Labs, are joining the push. Investors, such as Digital Currency Group and Polychain Capital, are also founding members.

The group has already made its first hiring: Kristin Smith, who was a collaborator of that time at Sen. Olympia J. Snowe (R-Maine) and continued to lobby Overstock.com, the online retailer that began accepting bitcoin payments in 2014.

"I spend a lot of time on basic education in this area," said Smith, who should guide the occupational group in its early stages. "I am delighted to focus exclusively on these issues. . "

Policymakers have been confronted in recent months with a series of cryptocurrency problems as investors flocked to bitcoins and other virtual currencies. The technology that they support raises new questions about financial regulation in the digital age – and in some cases, consumers have become the victims of scams that have attracted the attention state and federal regulatory agencies. Congressional hearings on cryptocurrency and recent Securities and Exchange Commission decisions have also highlighted the growing profile of bitcoins and other cryptocurrencies.

The Blockchain Association aims to become the leading lobbying organization of the cryptocurrency sector in Washington on policy issues, presenting itself as a voice for traditional businesses that want to work in the political system rather than bypassing it. . past.

Among its top priorities are how cryptocurrencies are treated under US tax law and will explain to policymakers how anti-money laundering and customer knowledge regulations apply to this sector. .

"The Blockchain Association is an effort to bring together the most prestigious companies in space [policymakers] Know that they hear from companies that welcome the regulation when appropriate, "said Mike Lempres, Legal and Risk Manager for Coinbase. "We are not companies looking to use the system, but we are trying to develop a legal and regulatory system that stands the test of time."

This is not the only time blockchain defenders have tried to play Washington's influence game. Ten years ago, organizations such as the Bitcoin Foundation played a similar role. But it was a captivating organization – representing industry and individual consumers; Act as a think tank, lobby group and standards body.

Now, the field of cryptocurrency is much more developed, with distinct sectors and interest groups, said Jerry Brito, executive director of the Coin Center, a Washington-based cryptocurrency think tank. The rise of a specific trade group is a sign of the growing maturity of the industry, he added.

"We are pleased to see this organization stand out," said Brito. "No. 1 … it's good to have more voices pleading for things we agree on." Coin Center, "and we're not really so." When we have questions on the industry, we can send them to these people. "