Vinay Gupta's Push for Crypto Reform in the U.S.

Vinay Gupta, a leading figure in the crypto industry known for coordinating Ethereum's release, aims to advocate for sensible crypto policies to President-elect Donald Trump's transition team.

A Shift in the Crypto Landscape

Gupta is motivated by Trump's significant Election Day victory. He plans to relocate himself and his team from the U.K.-based blockchain firm Mattereum to the United States. This shift could represent a major move in the crypto sector, as many companies have long considered leaving due to fears of regulatory enforcement by the U.S. Securities Exchange Commission (SEC). Firms like Coinbase and Ripple report that the SEC has made it extremely difficult for crypto firms to operate in the U.S. due to a lack of regulatory clarity.

Advocating for Pro-Business Policies

Gupta, who has experience in shaping regulations internationally, aims to implement similar strategies in the U.S. He recently published a policy briefing titled “Putting the Blockchain to Work for America,” which he plans to present to crypto-friendly politicians. He believes that Trump’s pro-business stance may pave the way for a more progressive approach to technology and regulation in America, potentially resolving ongoing conflicts in the crypto sector.

Bringing UK Policies to the US

Gupta envisions replicating successful U.K. policies in the U.S., including recognizing crypto assets as property and validating smart contracts as real contracts. His involvement has been pivotal in shaping these U.K. regulations, such as the 2019 Legal Statement on the Status of Cryptoassets and Smart Contracts by the U.K. Jurisdiction Taskforce, which helped solidify the legal standing of blockchain technologies.

Collaborating with Authorities

Gupta has positioned his firm, Mattereum, to play an educational role rather than a lobbying one in discussions around legal frameworks. He recently released a policy brief that outlines how the U.S. can harness technology to foster innovation in various sectors while weighing different international regulatory landscapes.

Proposed Initiatives

Gupta also suggests establishing a blockchain policy incubator and a neutral authority for blockchain standards, similar to the Internet Engineering Task Force's role in standardization. These initiatives are intended to promote interoperability across blockchain technologies.

Overcoming Challenges

However, Gupta acknowledges the political hurdles in the U.S., noting that legislative consensus is rare compared to the U.K. He encourages rapid development to break through the gridlock in U.S. law, as the environment can become highly competitive and politically charged.

While Gupta does not see his efforts as lobbying in the traditional sense, he recognizes that clearer regulations can benefit Mattereum's mission in areas like supply chain optimization and tokenization, particularly concerning U.S. sourcing practices.

> “In a system working that well, ‘lobbyin’ is, if anything, counterproductive. Nobody needs to be ‘sold.’”