A few well-known industry companies have come together to form the Blockchain Association, a group focused on educating Washington on the crypto industry in order to expedite the development of regulations.
While some may feel that regulating a decentralized industry kind of defeats the purpose, it is an important part of paving the way for mass adoption. However, the industry is growing at a rapid and phenomenal pace while clear regulations seem to be taking quite a while to catch up.
Law.com recently reported that some cryptocurrency companies are pushing for speedier resolutions and have formed the Blockchain Association (BA) lobbying group in a bid to do this. These aren’t some new startups, though. Its president is the chief legal officer of Coinbase, Mike Lempres, and the group represents a range of companies including Circle and Protocol Labs.
There are eight members in the group, which also includes Kristin Smith, a former senator’s aid and Overstock blockchain lobbyist currently based in Washington.
Confusion About Regulations
Companies continue to remain, for the most part, mystified about regulatory processes. Are their tokens securities or commodities? What are their tax responsibilities? Lempres explained the predicament that these businesses are currently facing, saying:
The biggest challenge we face, from a regulatory standpoint, is lack of clarity. The rules aren’t written yet. It leaves companies in a difficult situation. They want to do the right thing but it’s sometimes not clear what the right thing is to do.
Understanding Through Education
The BA wants to do much more than just ask for regulations; they also want to assist in the process by explaining the industry to policymakers in Washington. Lempres believes that it is this lack of knowledge that keeps cryptocurrency businesses in “a box built 100 years ago for a different industry.”
Circle’s head regulatory counsel and chief compliance officer, Bob Bench, agrees with this approach, stating:
As with early Internet innovators, blockchain firms need to partner with the government to effect this technology’s full potential. BA is a critical bridge for this partnership.
This is what disruptive technology is all about. Well-established protocols need to be reviewed and even scrapped to make way for the more fluid and dynamic nature of not only cryptocurrencies but also of evolving technologies as well.
The creation of the group comes after the U.S. Securities and Exchange Commission (SEC) has seemingly upped the ante on their crypto crackdown endeavors. They are focused on eradicating fraud in the crypto sector and continue to keep their eye on industry developments.
Do you think that the Blockchain Association will succeed in their noble quest? Let us know in the comments below!
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