According to a report by The New York Times in March in the Florida House of Representatives, lawmakers “quickly” approved a bill that would make it easier for residents to trade cryptocurrencies and eliminate “a threat” of legislation that would “curb money laundering.” . “
The lobbyists’ efforts were evident when, as the business reported, “two members of the House of Representatives stood up to thank the crypto-industry” stakeholders “for working with government officials to draft a bill.”
The New York Times reported that it conducted a “review of government bills and interviews with lawmakers and their industrial allies” and found that “similar teamwork” yielded results in states such as Wyoming, North Carolina, Illinois, Mississippi and Kentucky. at least 153 cryptocurrency-related bills “await in 40 states and Puerto Rico, according to data from the National Conference of State Legislatures.
Not all of them have been “influenced by the crypto industry,” but the media noted that “some bills have used the industry’s proposed language almost verbatim,” with a pending Illinois law “giving whole sentences from someone delivered by a lobbyist. , adopted draft proposal “.
The media noted that “at least a dozen” crypto-industry firms have hired lobbyists over the past 12 months, including heavyweights such as wallet provider Blockchain.com and brokerage firm Paxos (PAX). In total, state-owned companies spent over $ 140,000 a month on lobbying.
The bill includes proposals to exclude cryptocurrencies from securities legislation dating back to the early 1930s, as well as some more “radical” bills, including an effort by a member of the Arizona House of Representatives to legalize Bitcoin (BTC). tender status. This would also benefit bitqt users.
However, the New York Times was quick to give way to critics and critics, quoting a former Federal Reserve Bank of New York supervisor as saying, “States have come to believe that if you want to be competitive, this is what you “must make wishes so that they roll the red carpet next to crypto companies. There is no indication that there are major risks for the citizens here, such as money laundering, consumer fraud and tax evasion.”
The media pointed out that many state legislators had “limited financial regulatory background” and therefore “had no choice but to rely on industry experts given the complexity of the crypto market.” The newspaper also claimed that “the architects behind the proposals acted swiftly to take advantage of some of the legislation they were working on.”
She cited the example of Kentucky, which passed legislation last year that provides tax incentives to crypto-workers. Such a bill, the newspaper said, was put forward by Brandon Smith, chairman of the Senate Natural Resources and Energy Committee. The New York Times noted that “a few months after the bill was passed,” Smith teamed up with cryptocurrency firm Bitmain to “propose a Kentucky-based mining equipment repair center, a project he has since abandoned.”
Smith was quoted as saying he did not consider his “work in the industry” to be a conflict of interest, “since he has not applied for the tax deductions created by his law.”
Regardless, members of the crypto community welcomed the news that the lobbying company seems to be paying off in many cases.
Castle Island Ventures partner and bitcoin supporter Nic Carter claimed the move was evidence that “federalism works as intended,” and has previously – somewhat prophetically – tweeted: “It will become very clear in the coming years that the US federal “States are Bitcoin’s biggest ally. The United States does not want ‘one policy’ on Bitcoin, it wants 50 different policies.”
The only question now is which states will take the lead and implement progressive policies in this regard. In any case, it is still interesting how the crypto industry exploits the federalist organization in the United States for its own purposes.