NFT DAO Gives $4 Million to Crypto Lobbyist in the Form of a Cartoon Lobster

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A total of 1,000 ETH will be sent to the crypto lobbying group Coin Center.

A DAO has unanimously voted to donate the $4 million in crypto it raised through the sale of 10,000 “Lobby Lobster” NFTs to Washington crypto lobbying group Coin Center.

The sale, which took place on August 5, sold out in less than one hour and raised 1,000 ETH (around $4 million at the time) for crypto lobbyists trying to get regulators off the back of the decentralized finance (DeFi) industry.

Each lobster NFT sold for 0.1 ETH, worth about $390 at the time. The destination of the proceeds was undecided at the time of the sale, but a DAO poll voted yesterday to give the funds to non-profit research and advocacy organization Coin Center.

When the NFTs are resold on OpenSea, 2.5% goes to OpenSea and the remaining 7.5% goes to other lobbying groups and organizations. The organizations will be decided through monthly polls.

Tough times ahead for DeFi

The cryptocurrency industry is prepared for further regulatory scrutiny in the coming months. Gary Gensler, Chair of the United States Securities and Exchange Commission, stated his support for regulating decentralised finance in the middle of August 2021.

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Gensler addressed the European Parliament’s economic and monetary affairs committee earlier this month, labelling cryptocurrency “extremely speculative.” The SEC initiated an investigation into the decentralised exchange Uniswap two days later.

 

The SEC threatened to sue Coinbase on Wednesday if it went ahead with a plan to launch a lending programme that would pay stablecoin owners 4% percent. The warning, which concerned whether Coinbase’s product constituted a securities offering, elicited a 21-tweet response from Coinbase CEO Brian Armstrong, who stated that the SEC had recently displayed “some extremely dodgy conduct.”

Andreessen Horowitz, the crypto venture capital firm, has hired a slew of former Washington officials to assist prepare for shifting political attitudes regarding cryptocurrency. This Monday, the firm welcomed Brian Quintenz, a former Republican commissioner of the United States Commodity Futures Trading Commission, to advise it on crypto investing policy.

Binance.US also hired Brian Brooks earlier this year, a former head of the Office of the Comptroller of the Currency under Trump and Coinbase’s former Chief Legal Officer—though his employment didn’t last long. Three months later, Brooks resigned, citing “differences over strategic direction.”

 

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It looks like choppy waters ahead for DeFi, but could pumping a load of money into Washington help the sector weather the storm?

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