Key cryptocurrency stakeholders like Coinbase and Square have formed an alliance to better engage policymakers and regulators on cryptocurrency regulation. They are joined by other major players in the cryptocurrency scene such as Fidelity Digital Assets and the cryptocurrency-focused investment firm Paradigm.
The group is called the Crypto Council for Innovation and aims to promote constructive dialogue with authorities and regulators about the benefits of cryptocurrencies, according to information posted on the group’s website.
An excerpt from the CCI website reads:
“CCI supports governments and institutions around the world in shaping and strengthening responsible cryptographic regulation in a way that unlocks potential and improves lives.”
According to the CCI, effective communication with regulators will help separate “facts from opinion” about cryptocurrencies.
In fact, globally regulated cryptography often echoes misconceptions about the crypto industry. Last February, US Treasury Secretary Janet Yellen announced that cryptocurrencies are increasingly being used for criminal activities.
Yellen is not alone in making such claims, despite current research showing that the crime rate in global cryptocurrency trading is less than 1%.
CCI is the latest rise of cryptocurrency-focused lobbying, with groups like the Blockchain Association and Coin Center also working against prudent cryptocurrency regulations.
As Cointelegraph previously reported, Ripple spent the most money on lobbying in the US in 2020. The company is currently fighting a lawsuit against the company by the US Securities and Exchange Commission.
Cryptocurrency lobby groups have had some success addressing strict cryptocurrency laws. In India, a coalition of industry advocates led by the Internet and Mobile Communications Association of India (IAMAI) led the indictment against the 2018 Central Bank ban, which led to the overturning of the Supreme Court ruling in March 2020.
Currently, IAMAI members are trying to convince government officials to take a more nuanced approach to coding regulation in India.