WITH AN EYE ON 2021 LAW, CRYPTO INDUSTRY WILL ‘ENGAGE’ WITH CONGRESS IN 2022
The cryptocurrency industry plans to spend next year building on 2021’s record political engagement to lobby Congress and regulators for clarity around tax reporting, stablecoins and asset classes.
Representatives from advocacy groups said cryptocurrency reporting requirements in the bipartisan infrastructure package this year were a wake-up call for many in the industry.
“I definitely think this was a threshold moment that has been a catalyst for changing the way that the cryptocurrency industry has engaged in Washington,” said Kristin Smith, executive director of the Blockchain Association. “I think that crypto received the message that they need to constructively engage in Washington, and they’re taking it seriously.”
The association this month said in 2021 it more than doubled, to 65, a membership comprising cryptocurrency firms, investors, exchanges and infrastructure companies.
The wider cryptocurrency ecosystem saw the same trend. Many crypto companies hired outside lobbying firms and beefed up in-house government relations staff in the wake of the infrastructure law, Smith said, adding that she expects the momentum to build in 2022.
“We’re going to continue to see that ramp up over the next six or so months, probably, but I think it’s going to be a much different game next year,” she said in an interview. “I’ve never been more excited for the prospects of getting good policy outcomes.”
The increased presence of the cryptocurrency industry on Capitol Hill comes as lawmakers — both supporters and critics — are showing greater interest in the sector, and congressional committees start to lay the groundwork for legislation.
House Financial Services Chairwoman Maxine Waters, D-Calif., convened cryptocurrency executives for a hearing this month that she said would give the committee information to “make the right decisions” when it comes to overseeing the sector.
The industry is marshaling resources to ensure it’s part of the conversation as policy comes together. It has three priorities.
First, the industry is hoping to change tax reporting provisions in the infrastructure package signed into law last month. Industry repre