US Corporations Spend Millions Lobbying for Cryptocurrency Regulation, Including Taxation

Institutional adoption of digital assets may be all but inevitable in the United States (US). According to data published by the Federal Election Commsion, about 80 US-based companies and institutions named digital currencies and blockchain technologies among their biggest concerns. Furthermore, US companies spent $42 million to lobby for cinterests in cryptocurrency and fintech industries.

Corporations Know Where Their Interest Lies

Lobbying disclosures for the first three months of 2020 revealed that a broad spectrum of industries are targeting a fintech legislation. More 40 firms lobbying for fintech quarter listed blockchain and cryptocurrencies among their biggest concerns. Importantly, auditing companies including Ernst&Young and Accenture, Alibaba, FreedomWorks, and IBM, showed particular interest in the cryptocurrency and blockchain solutions. In addition The US Chamber of Commerce has been reported to have millions to promote its blockchain-based interests.

Lobbying by Digital Asset Companies

Meanwhile, the corresponding expenses of the non-profit organization Coin Center amounted to $140,000. As well, Coinbase has allocated funds for the purpose of making amendments to the Bank Secrecy Law while Ripple Labs has also invested fund to lobby their interests. Lastly, It is worth noting that in the final quarter of 2017 only a dozen of companies paid to lobby their cryptocurrency and blockchain-related interests in Washington. However, in 2018, the number nearly tripled. Thus, while cryptocurrency and digital asset companies may be investing less heavily into regulations for the blockchain space, the amount of their investments is increating.

Tax Issues Are On Top Of The Agenda

New technologies present a lot of challenges for market participants, lawmakers and regulators in their quest to adopt existing systems and legal frameworks to include blockchain technologies. Currently,cryptocurrencies and digital assets are not clearly defined by US governmental agencies. This makes taxing these assets one of the most difficult endeavours of all. Worst of all, the IRS has provided little guidance on how to tax digital assets. Perhaps this si one of the reasons so many corporations are lobbying for proper regulations. Defining the assets will make it easier to know how to pay taxes properly. Do you think US corporations will help cataylze insitituional integration and mass adoption of digitial assets? Let us know your thoughts in the comments below. [Image Credits: Shutterstock]