BlockFi engages lobbyists to facilitate conversations with decision-makers
According to Reuters, renowned crypto lending platform BlockFi has engaged lobbyists from Arnold & Porter Kaye Scholer LLP to focus on tax and regulatory policy for companies that offer financial services in digital currencies. Together with Arnold & Porter, BlockFi has assembled a five-person policy team. Mark Epley, a partner at Arnold & Porter, and Kevin O’Neill, the group chair for the legal and lobbying firm’s legislative and public policy practice, are on the team. BlockFi is the newest cryptocurrency company to recruit lobbyists after hiring Arnold & Porter. Epley claimed that Arnold & Porter would act as BlockFi’s alter ego when interacting with legislators to advance business interests. He pointed out that while lobbyists can be helpful in such discussions, officials are not interested in hearing from specific market participants. Epley revealed that despite having other customers with interest in cryptocurrencies, Arnold & Porter is not currently advocating for any other businesses.
The company is eager to collaborate with decision-makers to develop the legal and tax framework for digital assets, the representative continued. Following its failure to register its lending product, BlockFi has now agreed to pay $100 million to the U.S. Securities Exchange Commission (SEC) and 32 states. The largest fine ever imposed on a cryptocurrency company was broken with this fine. Of the $100 million, the SEC took $50 million. Other than BlockFi, many other cryptocurrency businesses engage in lobbying. These companies and organisations include naming a few, Coinbase, Ripple Labs, Blockchain Association, Stellar Development, Chamber of Digital Commerce, Coincenter, and Coinflip.
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