As more and more companies join the effort to combat financial privacy rules, the crypto lobby is growing.
Today, the Blockchain Association announced the addition of five new members, bringing the total number of members to 30. New members include Uniswap, Blockfi, Fireblocks, CMT Digital and Blockchain Capital.
In the tweet announcing the news, the Blockchain Association attributed its increase in membership to its work in proposing an industry response to the rules from the U.S. Treasury Department’s Financial Crimes Enforcement Network (FinCEN) in the late Donald Trump administration. The association wrote: "Battling back the FinCEN process was an important step, demonstrating what is possible when we speak with one voice."
FinCEN's proposal involved extending the thresholds of $10,000 for reporting all crypto transactions and the limit of $3,000 with self-hosted wallets that lack identification capabilities. These rules are derived from the Bank Secrecy Act and would be a major interference in peer-to-peer transactions. From this week, they started to act again.
As a trade association, the Blockchain Association unites members of an industry under a common umbrella and lobbies Congress on behalf of mutual interests. Many crypto companies operate their own internal lobbying businesses or personal contracts with established companies.
FinCEN's focus on decision-making attracted other members of the cryptocurrency industry lobby. The Nonprofit Coin Center recently received a $1 million donation from Grayscale. A representative of the Coin Center commented on the upcoming priorities: "Most of our work in 2021 will likely continue to maintain financial privacy and hope to advance some smarter tax policies."
In the fight against FinCEN's proposal, the Coin Center and the Blockchain Association were indeed well-known allies.