Within the cryptocurrency world, letters from Congress have turn out to be an essential instrument for coverage change. Over the previous few years, the impression of those letters has different; some led to vital coverage adjustments, whereas others merely brought on a ripple within the information cycle.
This week, cryptocurrency skilled Ron Hammond examines the effectiveness of those letters, the elements that contributed to their success, and the coverage actions they initiated.
What makes a letter from Congress efficient? In keeping with Hammond, a number of elements come into play. The governing political social gathering, the seniority of the member (particularly if he’s the Committee Chair), and robust bipartisan help play essential roles. The best way the letter is introduced within the media can be essential, each by way of the message and the potential coverage change.
One instance of a strong letter got here from Senator Warren, a number one progressive voice with a big media presence. His letter to the US Environmental Safety Company final 12 months led the US Power Info Administration (EIA) to report on crypto mining’s vitality use.
Alternatively, Senator Ted Budd, whereas within the Home of Representatives, despatched a letter to the then-Republican SEC Chairman relating to the appliance of federal securities regulation to digital property. The response from the SEC formally accredited Bitcoin as a commodity and marked a constructive step for the crypto business.
Typically letters are used to supply political cowl for establishments to take coverage motion, Hammond stated. For instance, Rep. Darren Soto and GOP Majority Rep’s letter relating to the Bitcoin ETF might have dramatically modified the crypto panorama if Gensler adopted bipartisan management.
Surveillance letters, which usually come from minorities, usually should not have any impression and are extra for the aim of sending a message. Nonetheless, when there’s bipartisan consideration, it sends a powerful message.
In keeping with Hammond, letters do not all the time get a response, particularly after they’re despatched by a minority. Nonetheless, this doesn’t imply that the minority is unimportant. Within the Senate, these members verify company heads, so ignoring them could possibly be harmful, particularly given the chance that the Senate might flip to Republicans subsequent 12 months.
This week in Congress and crypto:
1) Over the previous few years, there’s been quite a lot of letters from Congress on crypto. Some have had a serious impression on coverage, others only a fast information hit. Within the absence of laws shifting, letters have been a technique Congress has moved the needle— Ron Hammond (@RonwHammond) February 12, 2024
*This isn’t funding recommendation.