A group of key crypto companies have formed a new trade group that aims to lobby policy makers and shape the way the industry is regulated.
The companies include Fidelity, Coinbase, and Square, as well as venture capital firm, Paradigm. First reported by the Wall Street Journal, the ‘Crypto Council for Innovation’ will lobby policy makers, conduct research projects, and crucially provide a platform that represents the many voices in the blockchain and cryptocurrency industry.
Fred Ehrsam, co-founder of Paradigm and Coinbase’s former president commented on the new trade group:
- “Crypto is at a mainstream inflection point. It’s in its very early stages and, much like the internet (once was), it’s very fragile while it’s in that stage.”
The emergence of this trade group comes at a crucial point for cryptocurrency regulation, which increasingly requires clarity from the legislature. With landmark court cases in the making, and global policy makers unclear on the status of cryptocurrency and crypto tokens, the demand from crypto advocates for a clear framework that is crypto-friendly has never been more pressing.
The trade group is likely to find an ally in at least one regulator, in the form of Hester Pierce, given the moniker crypto-mom, a member of the US Securities and Exchange Commission who has been vocal about her support for crypto and a positive approach to regulation.
With Bitcoin maintaining a strong position over the course of the year, touching the $1 trillion mark in market capital, the need for regulation that doesn’t penalise crypto companies is being advocated for by the new trade group.
As the industry increases in size and influence, trade groups, advocates, and key industry figures will be lobbying policy makers and coordinating to get the best possible outcome for the nascent industry.