Podcast Summary
Crypto Community Engages with Regulators through Lobbying and Public Goods Funding: The crypto industry is advocating for itself through lobbying and public goods funding, such as Gitcoin's Bitcoin grants experiment. Lobbying is crucial for the industry's growth and adapting to regulatory conversations.
The crypto community is actively engaging with regulators and policymakers to advocate for the industry through lobbying and public goods funding. Gitcoin's Bitcoin grants experiment uses quadratic funding to leverage community support and decide on future public goods. The importance of this effort lies in the challenge of funding public goods at a global level and the need to adapt to the current regulatory conversation surrounding crypto. The first panel, moderated by David Hoffman, will discuss the basics of lobbying and its importance in the crypto industry. The second panel, led by Connor Spellesi, will feature Jerry Brito from CoinCenter, Jake Jravinsky from the Blockchain Association, and Sarah Roth from Fight for the Future, who will share their experiences and insights on lobbying and the rule-making process. Listeners are encouraged to check out Gitcoin round 12 for more information.
Crypto Industry's Role in Political Lobbying: Bitcoin Round 12: Individuals can donate to crypto advocacy efforts during Bitcoin Round 12, which will be matched by Ethereum Foundation and others, signaling support and funding crucial lobbying efforts in the crypto industry.
The crypto industry, with its unique combination of money and passionate people, is expected to become a significant single-issue voting industry. This week, Bitcoin Round 12 is an opportunity for individuals to donate to various crypto advocacy efforts, which will be matched by a large pool of funds from the Ethereum Foundation and other organizations. These donations not only support these groups but also send a signal to the matching funding donors. Some of the grantees include well-known organizations like Coin Center and Blockchain Association, as well as lesser-known ones like Fight for the Future and Freedom to Cross Foundation. The crypto industry's lobbying efforts are crucial, as lobbying is a long-standing practice, but the industry's unique characteristics make it particularly powerful. However, it's important to remember that these efforts won't materialize without input from the community. Bitcoin Round 12 is the first of many such initiatives, and your participation can make a difference.
Empowering the crypto community through organizations and initiatives: Attendees encouraged to donate to Gitcoin Round 12, Uniswap grants program launched, importance of community and collaboration in crypto growth and development.
The crypto community is coming together to fund and advocate for the industry through various organizations and initiatives. The Coin Sensor, Blockchain Association, and Tor project are among those leading the charge. At the event, attendees were encouraged to donate to Gitcoin Round 12 to support these efforts. Uniswap, a sponsor of the event, also announced its Uniswap grants program, providing an opportunity for individuals to contribute to the DAO and help shape its future. The era of proof of stake is here, and Lido is making staking accessible to everyone. The importance of individual participation in crypto network validation is crucial for maintaining decentralization. Overall, the event emphasized the power of community and collaboration in driving the growth and development of the crypto industry.
Lobbying for Crypto Regulations by Industry Experts: Industry experts and former government officials engage in lobbying efforts to shape crypto regulations, bringing valuable insights from their backgrounds in government and policy.
The crypto industry, through organizations like the Blockchain Association and advocacy groups, engages in lobbying efforts to shape regulations that impact their industry. Former government officials and industry experts, like Kristen Smith from the Blockchain Association and Tomika Bryant from Andreessen Horowitz, bring valuable insights from their backgrounds in government and policy to advocate for the crypto community. Lobbying is important because governments create laws and regulations that can have real-world consequences for the industry. The crypto ecosystem is complex and different from anything seen before, making it crucial for the industry to engage in the policy-making process. While some in the crypto community may be anti-political or anti-government, understanding that politics is interested in the crypto industry is essential for ensuring regulations are fair and supportive of innovation.
Guiding policymakers through technology and derivatives markets: Effective education and engagement are vital for shaping better policies in tech and derivatives markets. Lobbying as a form of education plays a significant role in policymakers' understanding of real-world impacts.
Effective education and engagement in policy-making processes are crucial for shaping better outcomes in technology and derivatives markets. Policy makers often lack a fundamental understanding of the technology and its uses, leading to poorly crafted policies. By providing education, putting faces to the industry, and being a resource for new topics, we can lead to more informed decisions and positive consequences. Lobbying, viewed as a form of education, plays a significant role in policymakers' understanding of real-world impacts and complexities. The derivatives markets, overseen by the CFTC, are vast and touch all aspects of the economy, making education and communication essential. The process of educating policymakers can be likened to rangers guiding visitors through a national park, opening up a new and exciting universe and turning skeptics into champions. Fortunately, many policy makers are open to this educational effort as they seek alternatives to the status quo in the digital age.
Crypto industry needs to improve lobbying efforts: To effectively engage with regulators, crypto industry must recognize past shortcomings, promote cohesion, and mobilize quickly when necessary, addressing weaknesses like fragmentation and lack of a unified voice.
The crypto industry needs to improve its lobbying efforts to effectively engage with regulators and bridge the gap in understanding. The industry has been delinquent in engaging with key constituencies and there's a high degree of suspicion from policymakers. To move forward, it's crucial for the industry to recognize its past shortcomings, promote coherence and cohesion in messages to policymakers, and mobilize quickly when necessary. The strengths of the crypto industry lie in its communicative ecosystem, which can mobilize quickly and effectively. However, to have truly effective lobbying, the industry must address its weaknesses, such as fragmentation and the need to speak with one voice. The infrastructure bill this summer served as an inflection point, and key actors are now coming together to shape policy in a constructive manner.
Strengthening advocacy efforts and lobbying for favorable policies: The blockchain industry needs to invest in trade associations and lobbying to gain regulators' trust and create favorable policies. The Blockchain Association's growth and Gitcoin advocacy round are steps towards this goal.
The blockchain industry needs to strengthen its advocacy efforts and increase funding for trade associations to effectively lobby for favorable policies and gain the trust of regulators. The industry's focus on money creation makes it crucial to have well-funded lobbyists. While some regulators understand crypto, others may be skeptical. Building trust requires showing the benefits of everyday use and clear motivations. The Blockchain Association's growth and increased budget are steps towards maturity, but more resources are needed for effective advocacy. The ongoing Gitcoin advocacy round is an opportunity for industry members to contribute to these efforts.
Building trust with policymakers: Effective messaging and building trusted relationships are crucial for the crypto industry to gain policymaker support. Engage in dialogue, political giving, and tailor messages to policymakers' interests to build trust and address their concerns.
Building relationships, having trust, and effective messaging are crucial for the crypto industry to gain the trust and support of policymakers. Policymakers value relationships and trust, and engaging in dialogue, political giving, and one-on-one communication can help build these relationships. Tailoring messages to the specific interests of policymakers is also important, as different policymakers have varying concerns and priorities. The crypto industry is uniquely positioned to address these concerns and deliver positive outcomes, but it needs to do a better job of demonstrating how these tools can be used to solve real-world problems. Trusted relationships and effective messaging are essential for gaining the trust and respect of regulators and policymakers, and as the crypto industry grows, having more trusted messengers can help expand the reach and impact of these efforts.
Combining education, proactive idea generation, and coordination for effective regulation advocacy: Effective regulation advocacy requires a strategic approach, including the right messengers, diverse opinions, coordination, resources, and a deep understanding of the policy landscape to be prepared with ideas and solutions, rather than just reacting to issues as they arise.
Effective regulation advocacy requires a combination of education, proactive idea generation, and coordination within the industry. The speaker emphasized the importance of having the right messengers deliver the message to various stakeholders, as well as the need for a diverse range of opinions to inform decision-making. They also highlighted the challenge of juggling multiple issues and the importance of coordinating efforts to avoid duplication and maximize impact. The best defense is a good offense approach to regulation means being prepared with ideas and solutions, rather than just reacting to issues as they arise. This requires resources, coordination, and a deep understanding of the policy landscape.
Building a political machine for crypto industry: The crypto industry needs to focus on educating politicians about the benefits of crypto and web 3 technologies and building a political machine to effectively communicate these benefits and engage with policymakers in order to achieve reasonable wins in the 2022 elections and close the education gap.
Education and political engagement are crucial for the crypto industry to make an impact and achieve reasonable wins in 2022. Politicians need to understand the potential benefits of crypto and web 3 technologies, and the industry should focus on building a political machine to effectively communicate these benefits and engage with policymakers. The 2022 elections could be a turning point, with the margin of victory in many races determined by voters who care deeply about crypto and the web 3 space. Reasonable wins for the industry include bipartisan legislation that showcases the diversity of support for crypto and demonstrates its potential to benefit various communities. Building a political machine and increasing education efforts are key steps towards achieving these wins and closing the education gap.
Crypto Needs More Advocacy and Presence in Washington D.C.: Build an army of advocates, make crypto a campaign issue in 2022 elections, learn about decentralized finance platforms like Aave and centralized exchanges like Gemini, and support crypto advocacy efforts through grants and donations.
The crypto industry needs more advocacy from large companies and a stronger presence in Washington D.C. to bring awareness to the benefits of crypto and DeFi. The discussion highlighted the importance of building an army of advocates and making crypto a campaign issue in the 2022 elections. The speakers also shared their experiences with using decentralized finance (DeFi) platforms like Aave and centralized exchanges like Gemini. Aave is a decentralized liquidity protocol that allows users to supply and borrow various crypto assets, offering features like yield farming and collateral swapping. Gemini is a trusted cryptocurrency exchange available worldwide, offering products like the Gemini Earn program and the crypto back credit card. The panelists, Jake Chervinsky, Sarah Gaudet, and Jerry Brito, will discuss the political scene in D.C. and provide insights into trends and developments that the average crypto stakeholder may not be aware of. To support the crypto advocacy efforts, listeners are encouraged to explore the various grants on Gitcoin and consider donating to organizations like the Blockchain Association.
Advocating for Cryptocurrencies and Blockchain: Challenging Big Tech Monopolies and Promoting Individual Freedoms: Three panelists discussed the potential of cryptocurrencies and blockchain technology to challenge big tech monopolies and promote individual freedoms, emphasizing the importance of protecting the interests of these decentralized networks and the individuals who build and use them.
The panelists, Sarah from Fight for the Future, Jerry from Coin Center, and Jake from the Blockchain Association, are advocates for the use of cryptocurrencies and blockchain technology as a means to challenge big tech monopolies and promote individual freedoms. Sarah's organization, Fight for the Future, has a long history of advocating for the potential of decentralized technologies and opposing regulations that could harm their development. Jerry's organization, Coin Center, focuses on educating policymakers about these technologies and advocating for policies that preserve individual freedoms and innovation. Jake's role at the Blockchain Association involves advocating for policies that support the blockchain industry. Together, they emphasize the importance of protecting the interests of these decentralized networks and the individuals and developers who build and use them.
Crypto organizations collaborate with policymakers: Crypto groups like Spike for the Future, Coin Center, and the Blockchain Association educate, advocate, and sometimes litigate for industry's interests and users, adapting to varying policymaker views and proposing policy frameworks for decentralized finance systems.
Various organizations in the crypto space, such as Spike for the Future, Coin Center, and the Blockchain Association, are actively working with policymakers behind the scenes to establish beneficial policies. These organizations, which include the Blockchain Association as a trade group, focus on education, policy development, advocacy, and sometimes litigation to represent the industry's interests and those of its users. The perception of crypto among policymakers and regulators varies, with some being more educated and open to the technology than others. Education remains a crucial aspect of the conversation. The federal government, along with various state governments and agencies, each holds unique views on crypto. The organizations are focusing on both reacting to policymakers' ideas and proposing proactive policy frameworks to accommodate decentralized financial systems, recognizing that existing financial market regulations were not designed with these systems in mind.
Regulatory agencies' constructive actions on crypto: Despite negative rhetoric, US regulatory agencies have made significant strides in crypto regulation, creating a complex but generally positive landscape
While there are varying perspectives on cryptocurrency regulation in Washington D.C., the actions taken by regulatory agencies have generally been constructive. Agencies like FinCEN, the Treasury, CFTC, and even the SEC have made significant strides in regulating crypto. However, there is a disconnect between the negative rhetoric often heard and the actual regulatory actions. An example of this disconnect is the infrastructure bill, which raised concerns within the crypto industry due to its expansive tax reporting provisions. Despite this, it's important to separate the rhetoric from the reality and remain optimistic about the future of crypto regulation in the US. The infrastructure bill, a significant part of this conversation, was included in President Biden's campaign promises to build infrastructure and bring bipartisan efforts forward. The crypto industry was unexpectedly targeted as a pay-for provision, leading to the creation of new tax provisions that expanded the definition of a broker and created a broad definition for digital assets. These provisions posed significant challenges for non-intermediaries and required reporting for various transactions on public blockchains. Overall, the regulatory landscape for crypto in D.C. is complex, but the actions taken by regulatory agencies have generally been positive.
Crypto Industry Criticizes New Reporting Requirements in Infrastructure Bill: The infrastructure bill's new crypto reporting requirements were met with criticism from organizations like Fight for the Future due to privacy concerns and the nature of crypto transactions. The bill was passed despite opposition, leaving organizations to work with the Treasury Department to find a more industry-friendly implementation.
The recent infrastructure bill, which includes provisions requiring crypto transactions worth over $10,000 to be reported to the IRS, has been criticized for not making sense within the context of the crypto industry. The provisions were opposed by organizations like Fight for the Future due to their potential impact on privacy and the nature of crypto transactions. The bill was passed despite efforts to amend these provisions, leaving organizations like Fight for the Future to work with the Treasury Department to try and mold the implementation in a way that makes sense for the industry. The bill's passage came as a surprise to many in the crypto community, but Fight for the Future was able to quickly mobilize and facilitate calls to senators to support amendments and push for a more thoughtful approach to crypto regulation. Despite being a small organization, Fight for the Future leveraged its tools and expertise to make taking action easy for its supporters.
A small team can make a big impact during unexpected legislative changes for cryptocurrency and technology: Unexpected legislative changes in cryptocurrency and tech can trigger public response and community involvement, while regular order allows for behind-the-scenes improvements
When it comes to influencing policy related to cryptocurrency and technology, a small team can make a significant impact, especially during unexpected and rapid legislative changes. This was demonstrated during a recent fight against a proposed bill regarding cryptocurrency self-hosted wallets, which saw an outpouring of community support and over 40,000 calls to Congress. The success of this public fight was due to the lack of notice given, forcing a public response and mass disapproval. However, the team emphasized that most policy changes occur through regular order, allowing for behind-the-scenes conversations and improvements. Keep an eye out for potential surprise legislative actions, particularly in areas like self-hosted wallets and DeFi, which could trigger a public response and require community involvement.
Navigating the regulatory landscape for crypto: Staying informed and engaged is crucial for shaping crypto policy outcomes, as seen in past internet regulation battles
The regulatory landscape for crypto is uncertain, and enforcement actions may be kept confidential, making it challenging for the public to get involved. However, education and advocacy efforts are crucial in helping policymakers understand the technology and its potential benefits. The history of internet regulations, such as SOPA and net neutrality, serves as a reminder of the importance of community involvement in shaping policy. As Jake mentioned, policymakers may use negative rhetoric about crypto to score political points, but as the public becomes more educated and vocal about the technology, they can influence policy outcomes. Sarah added that campaigns like those against SOPA and net neutrality have shown the power of community engagement in shaping technology policy. Overall, staying informed and engaged is key to navigating the regulatory landscape for crypto.
Balancing Inside and Outside Games in Crypto Regulation: Continuously educating policymakers and the public is key to align interests and create positive regulatory inflection points in crypto
The crypto industry needs both inside and outside efforts to shape regulatory outcomes. While the inside game, such as Coin Center's work in educating policymakers, is crucial, it's not enough to rely solely on facts and persuasive arguments against deeply entrenched interests. The outside game, like framing issues to shift public opinion and mobilizing public action, is equally important in getting policymakers' attention. An example of a positive regulatory development that made Jake happy was Secretary Yellen's recent clarification on the application of anti-money laundering laws to the crypto sector. For Sarah, it would be new IRS guidance that makes sense and distinguishes between airdrops and forks. The key is to continue educating policymakers and the public to align interests and create more of these positive regulatory inflection points.
Navigating Regulatory Challenges in Crypto with Education and Framing the Narrative: Educating policymakers about crypto and its potential benefits, framing the narrative, and leveraging past victories against bad regulation are crucial for navigating the regulatory landscape in the crypto industry.
The crypto industry, with its roots in cryptography, has faced regulatory challenges before, but the stakes are higher now due to the involvement of money. Education and framing the narrative are crucial for navigating the regulatory landscape and ensuring that policymakers understand the concepts involved. AOC's support for decentralized tech and crypto could shift the political landscape and help Democrats engage with the industry. The Yellowstone analogy highlights the need to help people understand the metaverse and its risks and benefits. The cryptography industry's past victories against bad regulation provide a foundation for the current fight. To support the advocacy efforts, listeners and viewers are encouraged to check the links in the YouTube description or podcast show notes for the crypto advocacy funds for Getcoin Round 12.
Advocating for informed crypto regulation: To ensure crypto's growth and inclusivity, it's important for advocacy groups to educate policymakers and engage with communities to promote informed regulation.
The power of cryptocurrency extends beyond just creating and minting money. It's essential to direct that power towards advocating for informed and educated regulation and engaging with communities and policymakers who may not yet fully understand the impact of crypto on diverse groups. Optimism for the future of crypto lies in the fact that it's difficult to stop technological advancements, and as more people learn about its potential benefits, they become champions for the industry. The ongoing efforts of advocacy groups and the education of policymakers are crucial first steps towards achieving regulatory goals that promote the industry's growth and inclusivity. Additionally, there are various ways to contribute to the crypto space, including building, lobbying, and grassroots campaigns. The conversation about what crypto can look like within local communities is a crucial next step towards gaining widespread acceptance.
Ensuring Regulations Shape Crypto for Good: Invest in crypto advocacy events to shape regulations positively and ensure crypto's future is beneficial for all.
While the crypto industry is optimistic about overcoming regulatory hurdles, it's crucial to ensure these regulations positively shape crypto's development and don't create unnecessary friction. The next few years could significantly impact crypto's ability to positively impact people's lives and the world at large. The window of opportunity to direct crypto for good is now, and it's essential to assume this window is short. To get involved, consider donating to crypto advocacy events through platforms like Gitcoin, as every dollar can be matched and amplify your impact. Remember, your donation is not just a financial contribution but also a vote on where funding should go. Let's work together to ensure crypto's future is as positive and impactful as possible.
