Tech Experts Urge Washington To Resist Crypto Industry's Influence

A group of renowned technologists has joined forces to urge US lawmakers to crack down on the burgeoning cryptocurrencies industry, marking the first concerted effort to counter well-financed lobbying by blockchain companies. From a report: Harvard lecturer Bruce Schneier, former Microsoft engineer Miguel de Icaza and principal engineer at Google Cloud Kelsey Hightower, are among 26 leading computer scientists and academics who have signed a letter delivered to US lawmakers heavily criticising crypto investments and blockchain technology. While individuals have made similar warnings about the safety and reliability of digital assets, it marks a more organised effort to challenge the growing influence of crypto advocates who want to resist attempts to regulate the frothy sector. 'The claims that the blockchain advocates make are not true,' said Schneier. 'It's not secure, it's not decentralised. Any system where you forget your password and you lose your life savings is not a safe system,' he added. 'We're counter-lobbying, that's what this letter is about,' said signatory and software developer Stephen Diehl. 'The crypto industry has its people, they say what they want to the politicians.'

A recent analysis of the US Congressional Lobbying Disclosure database by Public Citizen, a consumer advocacy group, revealed the number of lobbyists representing the crypto industry increased from 115 to 320 between 2018 and 2021, and the money spent on lobbying for the crypto sector quadrupled from $2.2mn to $9mn in the same period. US-based cryptocurrency exchange Coinbase led the effort with 26 lobbyists and $1.5mn spent on lobbying in 2021. Companies with growing interest in the crypto sector, include Meta, Visa and PayPal, have also lobbied for the industry. Meanwhile, leading crypto exchanges such as FTX, Binance and Crypto.com have also spent heavily on endorsement deals with sports stars and entertainment venues to promote their products to the public.

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