Cryptocurrency leaders say that even though they failed to change language related to the regulation of their industry in the Senate's bipartisan infrastructure bill, the heated floor fight over it underscores their growing power in Washington.
They're gearing up to use that momentum to push back on the bill in the House and take the lead on future cryptocurrency rules.
"I think we were an unexpected force to be reckoned with," said Kristin Smith, executive director of the BlockChain Association.
The industry group, along with cryptocurrency companies and digital rights advocacy groups, created a joint front to push back on a provision in the bill that they argued included an overly broad definition of "broker" that would sweep in regulations for software developers and so-called miners.
"We were able to sort of work outside of some of our traditional allies and build a bigger coalition, and one that we think, despite not getting it across the finish line in the end, was actually pretty effective," Smith said.
The provision on cryptocurrency regulation helps fund the roughly $1 trillion bill, which cleared the Senate on Tuesday. The reporting requirements could raise $28 billion over 10 years, according to the Joint Committee on Taxation.
Industry leaders, however, warned the broad definition might lead to unintentionally requiring software developers and miners to report data they wouldn't even have access to, which could stifle innovation and push the industry outside of the U.S.
After 40,000 calls to legislators and more than 10,000 tweets with the hashtag #DontKillCrypto, led by digital rights group Fight for the Future, the cryptocurrency community won over support from a bipartisan group of senators who offered amendments to redefine brokers in a way aimed to keep it from sweeping in the developers and transaction validators.
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https://thehill.com/policy/technology/567460-crypto-industry-seeks-to-build-momentum-after-losing-senate-fight
