Coin Center Focuses On Educating Regulators

“Our mission is to build a better understanding of the technology in order to promote a regulatory climate that preserves maximum freedom of action for digital currency innovation. We are not a trade association or an industry group. Our job is not to represent any particular company, or industry, or currency, but instead it is to advocate for the freedom to innovate using blockchain technology.”
— – Coin Center

The decentralized and non-government currency, Bitcoin, has had a tough time fitting into the existing regulatory scheme. The regulations that have been proposed, like New Yorks’ BitLicense, have been rejected to one degree or another by the Bitcoin community.

Many believe that regulators have been proposing such regulation due to a lack of knowledge about the new currency. “I think people generally overstate the knowledge of government agencies about crypto-currency” said James Newsome, a former CFTC chairman and lobbyist. “I have been in a lot of the meetings with multiple agencies and the level of understanding is low.”

The main organization previously leading the charge for bitcoin in D.C has been the Bitcoin Foundation, a non-profit organization dedicated to the progression of bitcoin. They have worked to shed light on bitcoin’s tax implication in the US, push back against New York’s Bitlicense, as well as engage with European regulators.

In November that changed. With a new director the foundation announced it would focus solely on the development of bitcoin technology. "In the beginning, the foundation did it all — public policy, education and outreach, core development — primarily because there was no one else to do it. Thankfully we’ve come a long way since then and, as the ecosystem matures, just as with any startup, it’s time to start shedding hats and specializing."

In the same month, a new organization started which would take the regulatory reins. “Good luck to Bitcoin Foundation in their new focus on development. Coin Center is ready to take on the public policy effort,” tweeted Jerry Brito, Director of Coin Center.

The advocacy group was originally started by Brito, who quickly initiated their campaign for “unburdensome bitcoin regulations”. The legal team behind the institute began discussions with several government agencies, including FinCEN, the Consumer Financial Protection Bureau, the Federal Trade Commission, and the Commodity Futures Trading Commission (CFTC). They were one of the few organizations to provide testimony to the CFTC’s first ever hearing on Bitcoin.

“The implications of digital currency regulation are complex, unprecedented, and far reaching. Sound public policy in this space requires policymakers and the media to be informed by sound research,” said Brito.

While active in the public discussion around bitoin, they were also developing and designing the website for educating regulators. The website was launched on Tuesday, offering an expanding list of articles and essays written by leaders in the bitcoin field. They have also set up a forum for regulators to request briefings about different aspects of Bitcoin.

“Education about the technologies and how they work, their challenges and promises, and how their use implicates certain regulations is vital. Without a clear understanding of the technology, it’s easy to get the policy wrong. And as we engage in a dialog with regulators, novel policy and legal questions emerge. Our research aims to answer these questions and identify the unintended consequences to which some policy choices can lead,”
— – Brito

In addition to the new website, the organization has also added experts and industry leaders to their organization; Union Square Ventures Founder, Fred Wilson;  Andreessen Horowitz Co-Founder, Marc Andreessen; New York Law School Law Professor,Houman Shadab; and entrepreneurial resident at Stanford StartX, Elizabeth Stark.

The non-profit will continue to expand their website and work with regulators in the US and abroad. Just yesterday Brito spoke at a panel, hosted by the D.C Bar association, about bitcoin and the Consumer Financial Protection Bureau. The Director of Research at Coin Center,  Peter Van Valkenburgh, will be giving a presentation about cryptocurrency and regulation at an emerging technology event for EU parliamentarians.

“Coin Center’s mission is to build a better understanding of blockchain technologies and to promote a regulatory climate that preserves maximum freedom of action for digital currency innovation,” said Brito.