The BlockFi wallet and exchange serve individuals and businesses worldwide. Recently, the SEC charged BlockFi with ‘failing to register the offers and sales of its retail crypto lending product’. BlockFi was also charged with the violation of the registration provisions of the Investment Company Act of 1940. After the first-of-a-kind legal action, BlockFi has now teamed up with Arnold & Porter to make a five-person team that will oversee restrictive and tax programs for money service providers within the crypto space.
BlockFi hires lobbyists to discuss interests with legislators
With the help of Arnold & Porter, BlockFi has become the newest crypto firm to hire lobbyists. In accordance with Epley, Arnold & Porter would act as BlockFi’s alter ego, serving to discuss business interests with legislators. Policymakers aren’t interested in hearing from individuals in the market, but lobbyists can help in such discussions. Epley stated that although Arnold & Porter has other buyers interested in crypto, it is not currently lobbying for those companies.
Crypto firms like Coincenter, Coinflip & Blockchain Association spent $9 million lobbying
According to one of the firm’s proponents, acceptable regulation is the key to the firm’s success. A spokesperson for the corporation added that they are eager to work with policymakers to help define the restrictive and tax environment for digital assets. BlockFi recently paid $100 million to the U.S Securities Exchange Commission (SEC) and thirty-two states after failing to register its disposal product. The fine set the record for the highest penalty ever paid by a crypto firm. The SEC took $50 million from the $100 million.
Apart from BlockFi, multiple crypto firms are concerned in lobbying. These embody Coinbase, Ripple Labs, Blockchain Association, Stellar Development, Chamber of Digital Commerce, Coincenter, and Coinflip, to say a few.
A staggering $9 million was spent lobbying by crypto companies in 2021. The highest donors were Coinbase, Ripple Labs, and Blockchain Association, with Coinbase contributing $1.5 million. Ripple Labs contributed $1.1 million. By contrast, Blockchain Association contributed $900,000.
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