Crypto Companies Hiring Lobbyists to Influence New York Crypto Rules
A new filing shows that crypto firms Digital Currency Group, Blockchain.com, and about a dozen others are spending over $100k monthly in a $1.5M Albany lobbying blitz. Albany’s lobbying blitz aims at rewriting the rules of the crypto space that is unregulated at the Federal level in the US.
Crypto Firms to Wow New York Legislators to Make It the US ‘Crypto Capital City’
A recent report by Bloomberg shows that about fourteen crypto firms are contributing towards funding an organization to rewrite crypto regulations. The firms are contributing to funding Albany’s lobbying blitz, hoping to wow New York city lawmakers into introducing friendlier crypto regulations.
The act is backed even by other firms like eTORO that are not in the City since the results may influence the whole country.
New York is known for hosting some of the most demanding regulators globally. These strict financial watchdogs are also cautious of chasing away large investors to other ‘friendlier’ states like Texas, where taxes are lower. After long tussles with technology companies like Airbnb and Uber Technologies Inc, they have learned their lesson.
The City already has some of the most strict crypto regulations that require all platforms to be licensed before operating there. These regulations have already chased away a handful of investors, with some relocating and lamenting publicly.
Per Chief Business Officer at Blockchain.com Lane Kasselman, crypto firms have to get a seat at the table of New York financial regulators. The move is essential as other states are also active in rewriting their crypto regulations. Kassel noted that they have been tracking the records, and lawmakers seem serious about crypto adoption.
He explained that 2020 saw the introduction of 13 bipartisan bills related to cryptocurrency. However, the number has risen exponentially, with about 96 bills introduced in the US alone in the first six weeks of 2022. Therefore, the City should be wary of being left behind in crypto regulation.
New York, US’s ‘Crypto Capital’
New York lawmakers are now acknowledging cryptos publicly to help boost its economy’s recovery following the effects of the COVID19 pandemic.
“Does New York want to be the centre of the next great financial system or give it up to Miami and San Fransisco?” Kassel man said. “What is at stake? The best and the brightest leaving.”
The City is in the lead as the most prominent crypto city in the US while ranked using specialized crypto jobs. New York’s new Mayor Eric Adams, who did a crypto-based campaign to win the Mayorial seat, has hinted at transforming the City into a center of the crypto industry.
Since he assumed office in January 2022, Adams has partnered with investors like Mike Novogratz, Galaxy Digital’s CEO. He has also appeared at several meetups and explained the opportunities offered by adopting BTC and digital assets. He has also accepted his salary in BTC and ETH. However, there is little indication on the State’s Governor Kathy Hochul’s takes regarding cryptocurrency.
Additionally, even Mayor Eric Adams is not very comfortable with the side effects of the crypto industry, like carbon emissions. Since the China ban, the Albany Lobbying blitz has been dealing with the environmental impact of crypto mining and high energy consumption.
It plans to wow the regulators into easing crypto rules in the City by making the industry better there. Only time will tell how the regulators will react to Albany’s efforts and the increasing competition with other States.
