New “Securing America’s Internet of Value Coalition” Group Helps Lobby For Crypto In Wash, DC
FinTech Companies Bond Together, Agreeing to Pay Washington Advocates with Cryptocurrency
The need for regulators to make some decisions on the cryptocurrency industry is imminent, and a group of financial technology companies has decided to take action. They have established multiple lobbyists and advocates in Washington, DC, and they intend to pay all of them with the use of digital coins.
Every one of these fintech firms comes from San Francisco, though one of the most well-known names in the endeavor is Ripple, who is joined by a few startups to rally the cause. They released an announcement that shows their retention of the Klein/Johnson Group in their efforts to establish a worthwhile coalition. The firm has specific experience within technology and financial sectors.
This lobbying has become a necessary force, considering how Congress and the SEC seem to be taking their time on the federal rules that will dictate how cryptocurrency and blockchain technology are run. Much of the issue seems to be the fact that the price swings in the market make tokens wildly unreliable, though the many fraudulent projects in the industry most likely are part of the delay. Cybercriminals seem to thrive on cryptocurrency, but that should not be the only consideration here.
Largely, fintech firms want to find a way for the government to watch over the industry and protect consumers, but without diminishing the necessary competition globally. Their goal is to have a chance to voice their support and concerns with Congress, the SEC< the IRS, and other agencies that may interact with cryptocurrency at some point.
The group named itself the Securing America’s Internet of Value Coalition, which is clearly homage to a fintech world that connects all types of digital transactions. If given the ability to connect with countries around the world without a broker or other middleman, the financial industry would be revolutionized. However, it is hard to describe the impact to a group of policy makers without any involvement in the industry.
Executive chairman of Ripple, Chris Larsen, said, “We understand this is really complicated, and there is a lot of misinformation out there. The good new is there is a lot of interest in this topic in D.C.” Ripple has high stakes in this matter, considering that they are waiting to find out if their token is considered a security, which would then be regulated by the SEC regardless. However, the SEC has already ruled that Bitcoin and Ether do not qualify as securities.
Other companies involved in the coalition include Coil, Hard Yaka, and Polysign, which will collectively pay their retained law firm $25,000 a month, along with 10,000 XRP. However, once the payments are disclosed, the firm plans to cash out the XRP into dollars. The group is hoping that the involvement of lobbyists will give “some upside” to the cause.