Tech Experts Warn US Lawmakers About Increasing Crypto Lobbying Efforts: Report

Amid growing lobbying influence, a group of renowned technology experts have warned about the rising impact of the cryptocurrency industry.

According to the Financial Times, 26 computer scientists and academics, including Harvard lecturer Bruce Schneier, former Microsoft engineer Miguel de Icaza and principal engineer at Google Cloud, Kelsey Hightower, wrote to U.S. lawmakers terming cryptocurrencies as “risky, flawed, and unproven digital financial instruments.”

They also criticized cryptocurrency investments and blockchain technology. The technologists have asked Washington to resist pressure from digital asset industry financiers, lobbyists and advocates to create a regulatory safe haven for the asset class.

In the letter addressed to Senate Majority Leader Charles Schumer, D-N.Y., Minority Leader Mitch McConnell, R-Ky., Senators Patrick Toomey, R-Pa., and Ron Wyden, D-Ore., Schneier reportedly said, “The claims that the blockchain advocates make are not true. It’s not secure, it’s not decentralized. Any system where you forget your password and you lose your life savings is not a safe system.”

Stephen Diehl, one of the signatories, who also happens to be a software developer, said, “We’re counter-lobbying, that’s what this letter is about. The crypto industry has its people, they say what they want to the politicians.”

According to the Public Citizen analysis of federal disclosures, spending on crypto lobbying has increased from $2.2 million to $9 million from 2018 to 2021. The number of crypto lobbyists also climbed to 320 from 115 during the same period.

Last month, crypto exchange Coinbase announced establishing a think tank to ramp up lobbying efforts with the country’s policymakers.