Crypto has a regulatory capture problem in Washington — Or does it?
Lawmakers and even some crypto advocates are concerned about “regulatory capture” — the effect large crypto firms are having on the legislative process.
The crypto industry’s sway in Washington DC has made it more likely that the industry will get beneficial legislation, but it’s also creating problems.
Concerns of regulatory capture — a situation in which regulators or lawmakers are co-opted to serve the interests of a small constituency — have grown as crypto lobbying gains influence in Washington.
The risks of regulatory capture are twofold: First, the public interest is shut out from policy-making in favor of a single industry or company, and second, it can make regulators blind to or paralyzed by economic risks.
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