Several leading cryptocurrency and blockchain companies announced the creation of a blockchain association, the first lobbying group to represent the industry in Washington, the Washington Post reports.
The new association includes leading cryptocurrency companies: U.S. exchange Coinbase, a technological start-up Protocol Labs, Digital Currency Group of Barry Silbert, and Polychain Capital among them.
A new organization headquartered in Washington states that its main goal will be to represent the industry in the U.S. political system. With this aim, it will focus its activities on educational issues and normalization of relations with the authorities on matters of regulation and taxation.
The group will also work with legislators on regulatory documents in areas of combating money laundering and user identification and applying these regulations to the industry.
"The Blockchain Association is an effort to get the preeminent companies in the space together so [policymakers] know they're hearing from companies that welcome regulation when it’s appropriate. We’re not companies looking to game the system, but trying to develop a legal and regulatory system that’ll stand the test of time", says Mike Lempres, chief lawyer and risk officer for Coinbase.
The executive director of the non-profit research and human rights group Coin Center, Jerry Brito, said that the appearance of the blockchain association is evidence of the industry to “stand up”.
One of the first employees of the new association was former US Senate referee and Overstock blockchain –lobbyist Kristin Smith. According to her, she will take on the function of developing the course of the organization at the initial stage of its existence.
"I've been spending a lot of time doing a lot of the basic education work in this space. I'm excited to focus exclusively on these issues," she said.
WHY IS IT IMPORTANT?
- In February, a special assistant to the U.S. president and coordinator of the White House Cybersecurity Department, Rob Joyce, stressed that there is still a long way to go before the U.S. government begins to regulate bitcoin and other cryptocurrencies.
- Earlier, Coinbase, the prominent crypto exchange and wallet provider, has established a political action committee (PAC), which will be able to support political candidates, legislative initiatives, as well as to raise funds on behalf of persons running for public office.
- Recently crypto exchanges Gemini, Bitstamp, BitFlyer, and Bittrex decided to jointly fight the manipulation of the digital assets market as part of the of a Virtual Commodity Association, created by the brothers Cameron and Tyler Winklevoss.