A Legislative Outlook for Crypto and Blockchain in 2022
Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.
By Crista Yamasaki
Last year, sixty bills were introduced to Congress pertaining to cryptocurrency, blockchain, or digital currencies/tokens. Of these bills, the Infrastructure Investment and Jobs Act and National Defense Authorization Act are the only ones to have passed into law, however neither brings greater clarity to an already gray legal area.
The growth of the cryptocurrency and blockchain industry coupled with a rising user base has increased its appearance on Capitol Hill, making it impossible for the government to ignore. The plethora of bills introduced thus far range from regulatory to innovative and span across varying government branches and fields.
Some within the ranks recognize the potential of blockchain technology for both government and private sectors but creating a space for blockchain isn’t mutually exclusive for defining a functional space for cryptocurrency. Those seeking tighter regulation approach cryptocurrency and its protocols as a threat to a stable political and economic system. The concerns are three fold: financing illicit activities, predatory practices, and taxation. Based on the language in some of the proposed bills, it’s obvious that lawmakers have a limited grasp on the technology and cryptocurrency market.
While it isn’t abnormal for politicians to vote on items for which they have little familiarity, the question now is what can be done to secure the future for cryptocurrency in the United States? The answer comes in the form of lobbying and a rising contingency of educated lawmakers spearheading a portion of upcoming legislation.
The Economist calculates $5 million was spent by crypto firms lobbying the Senate in the first three quarters of 2021, stating that the increase in spending from July to September had quadrupled from the same time in 2020. Moreover, the growth of the bipartisan Congressional Blockchain Caucus exhibits the shift of lawmakers to be active leaders and participants in furthering the understanding of cryptocurrency and blockchain.
The increased attention on the industry is inevitable, but for those wanting to shape the future of crypto, a bigger step is needed to foster a better understanding between industry and government otherwise the future will continue to be met with legal ambiguity.