Can the Biden administration’s crypto-confrontation escalate to a conflict with business leaders?

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As digital assets continue to flourish and grow in the middle of the conventional financial environment, regulators all over the world are attempting to assert regulation and bring the crypto-space under their regulatory purview. Since the Biden administration took office in the United States, there has been discussion about controlling the crypto-space. However, business executives in the United States continue to be sure they get a voice in the matter before the final decision is taken.

According to a recent New York Times report authored by Eric Lipton, some digital currency companies have hired lobbyists, lawyers, and consultants to negotiate and assert a greater influence in the regulatory framework.

Highlighting the same in a recent interview, Lipton said,

“Some of the biggest companies like Coinbase and Ripple are particularly active in lobbying.”

Additionally, Cardano’s Charles Hoskinson had previously asserted that they would do everything as a company to interface with regulators and lobby against bad regulations. Lupin further highlighted that trade associations including the Blockchain Association and other consultants are also trying to influence public policy by staying active in the space.

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Stressing on the size of the industry and the need for a crypto-regulatory framework, Lupin suggested that the rapid expansion and colossal adoption by the masses have forced the government to enter the space. He added,   

“It [crypto industry] has gotten so big. It is now worth more than all of the US dollars in circulation globally. It’s so big that it’s no longer even conceivable for U.S regulators to say we’re going to ban cryptocurrency in the US.”

Illicit activities and money evasion continue to be the primary motives for the US government’s intervention in crypto-space. However, the industry is concerned that legislation will stifle its ability to develop and expand.

Highlighting the current state in Washington, Lipton went on to say,

“This industry has got a lot of cash to burn and wants to flex its muscles. That’s what’s going on in Washington with this space.”

Uncertainty in the business space on what is and is not legal has been a huge source of anxiety for the company for quite some time. The pending Ripple-SEC litigation is the outcome of the United States’ hazy regulatory environment. Lipton was able to point out that the confusion was eroding the community’s confidence in cryptocurrencies.

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According to Lupin, the federal government in the United States was originally uninformed about cryptocurrencies. Lupin spoke on what to expect from the Biden Administration, saying,

“I think the Biden administration is the first administration that recognises that it has no choice, but to confront this.”

He continued,

“The people who are in places of power are slightly more savvy and really understand cryptocurrency. So, there is a fair amount of optimism, but there’s no question there’s going to be a lot of fighting because the industry doesn’t want stiff regulations.”

With countries such as China, the Bahamas, and Norway now on track to launch their own cryptocurrencies, Lupin emphasised that the federal government in the United States will finally have to accept the principle of sovereign cryptocurrencies. He came to the conclusion,

“We are in a revolutionary period in terms of cryptos and electronic movement of money… The starting gun has gone off and we are entering this period of massive transition.”

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