The “revolving door” of the US cryptocurrency market

According to The Economist, the US derivatives market regulator, the Commodity Futures Market (CFTC), is one of the loudest speakers in the crypto body between 2017 and mid-2021. Technical Committee Director Brian Quintenz, oversaw most of the discussions and presentations on topics such as the integrity of the Bitcoin trading platform to institutions in the financial sector. "I know new ideas," he said.

In September 2021, Kutanz joined Andreessen Horowitz, a venture capital and cryptocurrency investment firm, as a consultant. He is just one of many former US cops to take to crypto, including former SEC Chairman Jay Clayton, who served as Treasury Secretary until January 2020. Chairman Brian Brooks and Chris Giancarlo served as CFTC chairman from 2017 to 2019 in UK, former treasury secretary Philip Hammond joined cryptocurrency startup Copper in October.

Although there have been no recent changes in the cryptocurrency market, its sales have increased 12 times since the start of 2020 to $2.4 trillion.Countries like El Salvador are surfing and making cryptocurrencies famous. Countries like China and India have threatened to ban cryptocurrencies. In contrast, regulators in the United States and Europe, home to many crypto trading games, are only just beginning to look into digital assets. This, in turn, has prompted crypto companies to try to lead, if not all, to protect the wave of regulation. Loni Mahanta of the Brookings Institution, a Washington-based think tank, says hospitality is in full swing.

Many rules apply. One of them is to prevent cryptocurrencies from using money laundering.In October, the Financial Action Task Force, a government-affiliated agency that sets international standards, approved new rules for cryptocurrency providers, including what user information they must collect. Countries use these measures, but at a different cost.A second area overseen by lawmakers is the taxation of cryptocurrency investments.Some countries treat property as property and only the taxable income is taxed when the property is sold. Since cryptocurrencies are regulated similarly to foreign currencies in other countries, unrealized profits are also taxed.

A third set of rules concerning financial management. It protects consumers against fraud, reduces the risk of fraudulent schemes and promotes fair competition.Trade regulators have decided whether digital assets should be treated as safe, forcing consumers to disclose greater information or determine the quality of products. Sales and exchanges must have the responsibility to protect the stock market (a key role). SEC Chairman Gary Gensler has said he wants to strengthen the "Wild West" rules of the cryptocurrency industry. The European Union (EU) is drafting legislation that would require crypto companies to apply for licenses to regulate transactions and ban tweets. Executives seem passionate about maintaining stablecoins, tokens tied to traditional rewards.

Until recently, most cryptocurrency markets paid little attention to mobility, but some wanted a free utopia without financial intermediaries or regulators. However, everything changed as the management system grew. Cryptocurrency exchange Binance came under investigation in the summer of 2021, with regulators in the UK, Germany and Japan warning that the platform was carrying out work in their respective territories. Another warning occurred in the United States in August 2021. A statement was added to President Biden's real estate bill that required more cryptocurrency companies to report their operations to payers. The market is starting to struggle.

One is to attract well-paid employees and bank employees. Deepali Vyas of research firm Korn Ferry estimates that high-risk executives typically earn between $6 million and $2 million a year, with senior executives also contributing tens of millions of dollars worth of stock, closed in options that don't return. not later in the year. The former US administration chief, who now works for the cryptocurrency firm, said he spends a lot of time with lawmakers and government leaders.

Companies also hire lobbyists.According to publicly available information, The Economist estimates that approximately $5 million was spent to host the US Senate in Q3 2021, of which approximately $2.5 million was spent in Q3.The event will employ 86 full-time staff, up from 1 year in 2016. Major cryptocurrency exchange Coinbase paid lobbyists $625,000 in the quarter alone. Cryptocurrency-enabled payments company Block has spent more than $1.7 million on hospitality since April 2020. Lobbying continues to increase in the EU capital of Brussels, where the company is once of 52 full-time employees.

Some major players are trying to fight tougher rules with their own gear. For example, Anderson is advancing self-regulation, while Coinbase is advocating for a new business leader. Another way to have an impact is to come together with professional associations. Perianne Boring, president of the Chamber of Digital Commerce, a key member of the cryptocurrency industry, has advocated for the Bitcoin exchange and opposed her organization by extorting demands to tie cryptocurrencies to software. "We saw high-ranking police coming towards us," he said.

The cryptocurrency market is also supported by government investments. In the United States, there are 35 members of the Congressional Blockchain Caucus. A significant part of Wyoming Senator Cynthia Lummis' 2026 campaign is free of people involved in the cryptocurrency industry. He said last month that he opposed Powell's nomination as Fed chair, referring to "the Fed's access to digital assets." In October 2020, the Political Action Committee of the American Chamber of Digital Commerce distributed $50 worth of Bitcoin to each legislator.

With cautious regulators, the cryptocurrency investment management deal is unlikely to succeed.The danger, however, is that this view poses negative politics. In August 2021, the infrastructure law was postponed for a week due to bipartisan protests against regulations affecting the crypto industry. A bill containing these regulations was finally passed in November 2021. Currently, the new law aims to weaken cryptocurrency regulations. The interest of government officials in the crypto industry has increased.