Crypto industry jumps into lobbying in response to FinCEN

The crypto lobby is growing as more companies join the fight against rules that attack financial privacy.

The Blockchain Association today announced the addition of five new members. The number of members is now 30. The new members are Uniswap, Blockfi, Fireblocks, CMT Digital and Blockchain Capital.

In its tweet announcing the news, the Blockchain Association attributed the increase in membership to its work to present an industry response to the Treasury Department’s Financial Crimes Enforcement Network (FinCEN) rules at the end of the Trump administration. The association wrote: “Combating the FinCEN process was an important step in demonstrating what is possible when we speak with one voice.”

FinCEN’s proposal included expanding the thresholds of $ 10,000 for reporting all crypto transactions and capping $ 3,000 for transactions with self-hosted wallets that have no identifying functionality. The rules derived from the Banking Secrecy Act would significantly affect peer-to-peer transactions. From this week on they are on the move again.

The Blockchain Association as a trade association brings together members of a single industry under one roof and a lobby congress in the name of mutual interests. Many crypto firms have their own lobbying operations or individual contracts with established companies.

Other members of the crypto industry lobby have benefited from the attention FinCEN has drawn to policy making. The nonprofit Coin Center recently received a $ 1 million donation from Grayscale. Commenting on his upcoming priorities, a Coin Center representative said: “Most of our work in 2021 will likely continue to adhere to the financial privacy line and hopefully drive more sensible tax policies.”

Coin Center and the Blockchain Association were indeed very visible allies in the fight against FinCEN’s proposal.

The Blockchain Association had not responded to Cointelegraph’s request for comment at the time of going to press.