Crypto firms gear up for battles over new rules in Washington

As soon as this month, the Treasury Department is expected to begin clarifying which firms will need to report user information under the infrastructure bill. — AFP

The cryptocurrency industry is bracing for an onslaught of regulatory and enforcement action this year, flooding Washington with money, snapping up lobbying firms, and building up their trade associations in an effort to curb new rules.

After a decade of scant attention from regulators, crypto companies are facing increasing pressure to hire lobbyists in Washington to play defence. The Securities and Exchange Commission and the Commodity Futures Trading Commission have made it clear they’ll take more action against companies that they say are violating their rules, while others such as the Internal Revenue Service, Office of the Comptroller of the Currency and Federal Reserve have said they plan to soon issue new rules that could have a dramatic impact on the industry’s profits.