blockchain association

Foundry Digital Joins Forces with Crypto Lobbying Group Blockchain Association

Foundry Digital, a subsidiary business of Digital Currency Group (DCG) focused on digital asset mining and staking, on Thursday announced that it has become a member of the Blockchain Association, which is made of industry leaders advocating for the collaboration and innovation necessary to support American leadership in the crypto industry.

The association is a member-led organization committed to enhancing the public policy environment for digital assets. With more than 70 members, Blockchain Association combines its network and insight to create a unique, meaningful policy with industry consensus.

As a member, Foundry stands shoulder-to-shoulder with other industry-leading firms at the forefront of blockchain innovation. Foundry’s joining will therefore help leverage Blockchain Association’s platform, blending industry insights and legal analysis, to inform lawmakers of the crypto industry’s economic growth and technological innovations. Together, Foundry and Blockchain Association will assist in shaping public policy for the blockchain and crypto industry to ensure that the highest standards are adopted.

Kyle Schneps, Director of Public Policy at Foundry, talked about the partnership and said: “Foundry and its clients have grown rapidly and expanded operations in various regions that are often overlooked, demonstrating the type of economic development and community revitalization the crypto industry can bring to these regions. Blockchain Association will help us carry this message of success and growth to Washington, where lawmakers can help replicate our success in communities across the country.”

Advocating for Innovation

Communication and collaboration have never been more important in the blockchain industry than nowadays. The recent U.S. Infrastructure Bill was a crucial incident that hugely impacted the industry. The weeks and days leading up to the bill’s passing was a testament to the resilience and strength that the blockchain industry possessed when it remained united under a common cause. Hundreds of stakeholders within the sector worked together and signed a letter written by the Blockchain Association to urge an amendment. Members including Fireblocks, Blockdaemon, Anchorage Digital, Kraken, AVE, BlockFi, Circle, Grayscale stood alongside their other peers in the industry on such an incident. The members of the Blockchain Association deepen their position for advancing a pro-blockchain environment.

Crypto Advocacy Group Calls on Regulators to Address De-Banking of Crypto Firms

The recent failures of banks providing services to crypto firms in the United States have raised concerns in the crypto community about a perceived “de-banking” of the industry. In response, the Blockchain Association has called on financial regulators to provide information about their actions in relation to the banks’ failures. The association has submitted Freedom of Information Act requests to the Federal Deposit Insurance Corporation, the board of governors of the Federal Reserve System, and the Office of the Comptroller of the Currency, seeking documents and communications that could potentially show if regulators’ actions “improperly contributed” to the banks’ collapse.

The Blockchain Association believes that crypto firms should be treated like any other law-abiding business in the U.S. and given access to bank accounts. The association is investigating allegations of account closures and refusals to open new accounts by banks against crypto firms, which it believes are part of a wider trend of de-banking the industry.

The recent banking crisis in the crypto industry began with the announcement by Silvergate’s parent company on March 8 that it would “wind down operations” for the crypto bank. This was followed by Silicon Valley Bank’s own failure after a run on deposits on March 10, and the closure of Signature Bank on March 12 by regulators. Some in the crypto community believe that federal regulators’ perceived attack on banks servicing crypto firms could force companies to turn to “shadier” options.

Prior to its closure, Signature Bank was considered a major crypto-friendly bank in the U.S., providing services to Coinbase, Paxos Trust, BitGo, and Celsius. The FDIC’s resolution handbook states that an acquirer tells the FDIC what assets and liabilities from the failed bank it is willing to take, as well as what (if any) money will change hands.

Former U.S. Representative and Signature board member Barney Frank reportedly claimed the FDIC was sending a “strong anti-crypto message” in shutting down the bank, and some lawmakers are demanding answers. The recent actions by regulators have prompted concerns in the crypto community about the potential for a wider crackdown on the industry by regulators. The Blockchain Association’s calls for transparency from financial regulators are part of wider efforts to ensure that crypto firms are treated fairly and given access to banking services like any other business.

Blockchain Association Seeks Information on De-banking of Crypto Companies

The Blockchain Association, a cryptocurrency advocacy group, has filed additional Freedom of Information Law (FOIL) requests to regulators in the US. The group had initially filed for information from the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, and the Office of the Comptroller of the Currency. The new requests were submitted to the Federal Housing Finance Agency and the New York Department of Financial Services, seeking further information on the de-banking of crypto-friendly banks.

The organization is interested in learning more about the de-banking of cryptocurrency companies after the closure of Signature Bank and the failure of Silvergate Bank. These two banks were known for their friendly stance towards cryptocurrency-related businesses, but both were closed down, leaving many companies in the crypto industry without a banking partner.

The Blockchain Association believes that these closures were a result of regulatory pressure, and that the lack of transparency around the issue is problematic for the industry. By filing these FOIL requests, the group hopes to shed more light on the situation and ensure that the regulatory process is fair and transparent.

The de-banking of crypto companies has been a contentious issue for some time. Many banks are hesitant to work with companies in the industry due to concerns around money laundering and other illegal activities. However, for companies in the crypto space, having a banking partner is essential for conducting day-to-day business operations.

The closure of Signature Bank and Silvergate Bank has highlighted the fragility of the relationship between banks and cryptocurrency companies. The Blockchain Association is seeking to understand what led to the closures and whether there was any unfair regulatory pressure involved.

This is not the first time that the Blockchain Association has filed FOIL requests to obtain information about the regulation of cryptocurrency-related businesses. The group has been a vocal advocate for the industry and has worked to ensure that regulators take a fair and balanced approach to the sector.

As the crypto industry continues to grow, it is likely that we will see more regulation and scrutiny from regulators. The actions of the Blockchain Association demonstrate the importance of transparency and accountability in this process, and highlight the challenges faced by companies operating in this space. By working together with regulators, the industry can ensure that it continues to thrive and innovate, while also addressing legitimate concerns around security and illegal activity.

US Regulator Crypto Custody Proposal Opposed

In response to the SEC’s proposal to amend its custody rule, the Blockchain Association and Andreessen Horowitz have filed letters of opposition. The Blockchain Association claimed that the rule would limit investment in digital assets and could leave investors’ assets at more risk. Meanwhile, Andreessen Horowitz stated that the rule could prevent registered investment advisers from transacting with crypto exchanges and violate the SEC’s duty of care requirements.

The proposal, which has not yet been approved by the SEC, aims to impose more stringent rules on investment advisers in the custody of assets, including crypto. The proposed measures include proper segregation of assets and annual audits from public accountants, among other transparency measures.

The SEC’s Chair, Gary Gensler, has specifically targeted crypto exchanges with the rule, claiming that some crypto trading platforms offering custody services are not qualified custodians. However, even within the SEC, Commissioner Hester Pierce has questioned the rule’s workability and breadth, suggesting that it appears to be targeting crypto and crypto-related companies.

The Blockchain Association and Andreessen Horowitz have both argued that the rule exceeds the SEC’s authority and would have a negative impact on investment in digital assets. They have also claimed that the proposed measures would prevent investment advisers from using crypto and could leave investors’ assets at greater risk.

Despite opposition from industry proponents and within the SEC itself, the proposal remains under consideration. It is yet to be seen whether the SEC will make any changes to the rule in response to the letters of opposition.