The senators suggest there are opportunities for regulatory capture and conflict of interest. \u201cPresident Trump may review any actions the OCC takes with regard to USD1\u2019s stablecoin application. He would be positioned to intervene in and deny the OCC from promulgating stablecoin safeguards, or force the agency to refrain from initiating any enforcement actions against WLF.\u201d<\/p>\n Son Eric Trump pumps his father\u2019s memecoin ahead of the inauguration. Source:\u00a0<\/em>Eric Trump<\/em><\/p>\n<\/figcaption><\/figure>\n They added that he could attempt to intervene or deny assistance to USD1\u2019s competitors and that the GENIUS Act provides no provisions to prevent such conduct.\u00a0<\/p>\n Crypto industry observers have also echoed concern over a single entity\u2019s undue influence over policy when it comes to Coinbase\u2019s influence in Washington\u2019s development of stablecoin policy.<\/p>\n In January, Coinbase CEO Brian Armstrong signaled that his firm would be willing to delist Tether\u2019s USDt, the world\u2019s largest stablecoin, if the version of the stablecoin bill under consideration in Congress became law.<\/p>\n Under those terms, USDC, in which Coinbase is a major shareholder, would essentially be fencing out its largest competitor from the US market.\u00a0<\/p>\n Castle Island Ventures partner Nic Carter cried foul, stating that \u201cregulatory capture is poison. Reminds me of what SBF used to do.\u201d<\/p>\n At the time, Vance Spencer, founder of crypto venture firm Framework Ventures, said that it was \u201ca blatant attempt at regulatory capture by US players done at the expense of US national interest.\u201d<\/p>\n \u201cThe future of stablecoins can be US dollar-based only if we allow a broader competitive set of stablecoin issuers to flourish and deny gatekeeping\/gaslighting by those interested in regulatory capture,\u201d he concluded.<\/p>\n George Selgin, senior fellow and director emeritus of the Cato Institute\u2019s Center for Monetary and Financial Alternatives, told Cointelegraph that the Bitcoin reserve is another clear example of the crypto lobby\u2019s influence over the regulatory process.\u00a0<\/span><\/p>\n Trump signs the Bitcoin reserve executive order. Source: <\/em>David Sacks<\/em><\/p>\n<\/figcaption><\/figure>\n \u201cIt\u2019s unlikely that anyone would have considered it desirable, let alone necessary, for the US government to maintain digital asset stashes \u2014 in fact, there\u2019s no good reason for its doing so \u2014 had it not been for intense pressure from cryptocurrency enthusiasts,\u201d he said.<\/p>\n Different lobbies influencing policymaking in Washington are nothing new, so much so that \u201cregulatory capture\u201d to the layman would seem to describe business as usual.\u00a0<\/p>\n Selgin said that the Biden administration\u2019s approach to crypto was equally an example of regulatory capture, just in favor of traditional financial firms that, with their lobbying efforts, wished to limit competition from industry upstarts.\u00a0<\/p>\n \u201cRegulators\u2019 relatively hostile stance toward crypto [under Biden] was no less evidence of regulatory capture than their more indulgent stance toward it today. The main difference was in who did the capturing,\u201d he said.\u00a0<\/p>\n \u201cFinancial regulatory capture is an old story; only some new players are now proving to be adept hunters.\u201d<\/p><\/blockquote>\n <\/p>\n When asked how one would differentiate between legitimate industry advocacy and regulatory capture, Selgin said, \u201cI don\u2019t think you need to. First of all, the line between them is very thin.\u201d<\/p>\n Industries rarely take complete control of regulators due in part to the fact that individual firms within an industry have different ideas about what ideal regulation looks like, said Selgin.<\/p>\n Furthermore, any kind of successful advocacy \u201ccaptures regulators to some extent,\u201d if only by virtue of the fact that it makes them change their beliefs about how best to regulate.<\/p>\n The question remains then: Is regulatory capture just to be accepted as a natural part of the policymaking process?<\/em><\/p>\n Some academics have suggested creating entirely new government bodies to deal with the problem. Gerard Caprio, William Brough professor of economics, emeritus at Williams College, proposed the creation of an expert panel dubbed a \u201cSentinel\u201d to oversee regulator behavior.\u00a0<\/p>\n But such proposals face nearly impossible headwinds, not only because of their technical complexity but due to the simple fact that lawmakers have no incentive to set up an organization that oversees them.<\/p>\n According to Selgin, the ultimate determination is not \u201cwhether or how the industry manages to influence regulators. It\u2019s whether the resulting regulatory regime serves the public interest […] If a regulation is harmful, it\u2019s harmful whether it was lobbied for or not.\u201d<\/p>\n And the public\u2019s interest in crypto is getting harder to see. Polls about crypto sentiment, trust and ownership vary wildly, and the Trump administration\u2019s personal interest has done little to endear it to skeptics or middle-of-the-road voters.\u00a0<\/p>\n Some industry surveys claim that a whopping 70% of Americans own crypto. Source: <\/em>NFT Evening<\/em><\/p>\n<\/figcaption><\/figure>\n Even crypto lobbyists admit that the (barely) bipartisan drive for crypto is driven by a desire to appease the crypto industry\u2019s deep pockets ahead of the 2026 midterms.\u00a0<\/p>\n Dave Grimaldi, executive vice president of government relations at Blockchain Association, said, \u201cThere are […] pro-crypto candidates who won and were funded by our industry and had votes coming to them from crypto users in their district. […] And then there were also incumbent, sitting members of Congress who lost their seats because they were so negative for completely unnecessary and illogical reasons.\u201d<\/p>\n Little can be done until lawmakers and regulators agree there is a problem to solve and exert the political will to solve it.<\/p>\n *********************************<\/p>\n If one of the paying programs on our Monitor appeals to you, please support EmilyNews<\/em> by registering for it on our website. Thanks very very much!<\/p>\n EN web Support Chat<\/strong> | Hyips and Crypto questions \u2013 HyipChatEN<\/a><\/strong><\/p>\n Telegram Chat for Crypto and Hyip reports: @HyipChatEN<\/a><\/strong><\/p>\n *********************************<\/p>\n Be the first to get most important HYIP news everyday! If you like this article and want to support EN \u2013 please share it by using at least few of social media buttons below. Thanks and See you tomorrow!<\/p>\nRegulatory capture is old hat in Washington lawmaking<\/h2>\n
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