From lawmakers to bosses

How crypto companies have been lobbying ex-officials

The crypto world has faced unclear regulations in many countries of the world. An obstacle to growth and trust. People have wanted to do something in crypto but end up holding plans after news hit them that new regulations are coming. The Blockchain Association is working and putting money to see clear laws and regulations set by the US government.

However, most crypto companies have opted to work with Ex-regulatory officials. Blockchain companies hire ex-official aiming at understanding and manoeuvre through an industry with new regulations oftentimes.

Jay Clayton, the former SEC Chairman was appointed by One River Digital Assets as a member of the advisory team immediately after he retired from SEC. Binance hired former Financial Action Task Force execs Rick McDonell and Josée Nadeau to advise on regulatory and compliance matters. Brian Brooks, a Former US acting comptroller, was hired as the CEO of Binance US effective from March 1. The list is endless.

These hires are also a sign that the crypto world is maturing, blockchain companies now understand how things should work. It is a way to lobby acceptance. Most importantly a way to ensure full compliance to the set regulations. Hiring ex lawmakers and regulators help in anticipation and alignment with the current and possible new regulations. 

These people are getting hired because of the knowledge of the regulations but is there a hidden agenda? Are Blockchain companies working to have their needs accepted? Are they trying to hold these people for their influence since they made the laws or they trust their input? It is however clear that Blockchain companies are aiming at expanding therefore having such people on board will improve leadership.

It doesn’t seem to work

Ex-officials and regulators are being brought in to help in making decisions in the market. However, things are still not in shape. More powerful people are still moving the market with their comments on crypto. For example, when Former US President Donald Trump called Bitcoin a scam and moved the prices down by over 3%. Elon Musk is known for his influence in his tweeting. His tweets have been moving the market and people have reacted to his comments and how they affect the market.

Vitalik Buterin has gone public to say that Musk’s influence will no longer be influential. He emphasized that people have learnt a lesson during the crash. In the meantime, Ethereum is still on consolidation after it went to a dip which cut its price by half from its last high.

Regulations after regulations

As blockchain companies keep on recruiting ex-regulators and institution ex-workers, regulations have still been coming. China is still banning mining firms, and they won’t stop. Qinghai Province is the latest to ban mining activities.

In the meantime, Dutch officials are calling for a complete ban on Bitcoin. Officials sighted that Bitcoin is handy for criminals and doesn’t meet the three functions of money.  Therefore, mining, trading and holding of Bitcoin should not be allowed.

Some countries like China are placing regulations against Bitcoin because they have plans to create their digital coin. Others are accepting Bitcoin like the case of El Salvador adopting Bitcoin as a legal tender.

Helping the needy

Blockchain companies and cryptocurrency owners are also generous. They are willing to send their profits to cushion Covid-19 affected areas. Vitalik Buterin is one of them as he gave his Dogecoin profits to charity.  Jack Dorsey, an investor in Bitcoin, tweeted sending a billion worth of Bitcoin to charity.

India is one of the greatest beneficiaries of this help. Is it a way to lobby the government after uncertainties of crypto in the country over the fear of strict regulations or a ban? 

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