Blockchain Lobbying: Interests Fragmenting as Crypto Field Expands

The field of blockchain lobbying was no exception: From Mark Zuckerberg smooth-talking powerful officials into supporting his global initiative to an expansion of the impressive roster of corporate lobbyists summoned to advocate for it, Libra has been dominating the recent coverage of government-crypto industry relationships.

As the blockchain industry matures, so too does its specialized lobbying scene, and compared to just months ago, it has undergone some noticeable changes.

Key players and issuesAny review of the blockchain lobbying landscape would have to contend with the fact that there is neither a homogeneous set of organizations that advance their interests in a standardized fashion nor an established format of doing such work.

Trade groups such as the Wall Street Blockchain Alliance and Government Blockchain Association primarily work to promote networking and cooperation between those involved in the industry.

Speaking of "Crypto-native" entities, the Blockchain Association, backed by heavy-hitters such as Coinbase, Protocol Labs and Circle, launched in September 2018 to coordinate the industry's stance on regulation.

"There are several members of the Blockchain Association that are active in Washington, D.C., and more companies are acknowledging the importance of engaging with Congress and the key regulatory bodies. I think it's a natural development of a maturing industry and a recognition that we should have a voice in the important legal and regulatory conversations."

Although the Blockchain Association comprises some of the most prominent names in the trade, it is hardly representative of the entire blockchain sector.

The move seems justified, given widespread concerns over how proof-of-work systems like Bitcoin are wasteful and unsustainable, but it also adds to the increasingly cacophonous character of blockchain representation on Capitol Hill.However, rifts exist not only along technological lines: Industry players still diverge in the degree to which they are ready and willing to engage with regulators to advance their interests.

Late September saw former Sen. Mark Kirk establish a group called U.S. Blockchain Advocacy Partners, which aims to "Develop and implement a long-term, comprehensive, and inclusive blockchain technology plan for the U.S. government" and even register a political action committee, or PAC, as a means to that end.

Uneven representation and concentration of lobbying power at the hands of the few are indeed real threats, and the blockchain industry would do well to start thinking of safeguards against them early on.