The cryptocurrency industry took a major institutional step forward on September 13, 2018, with the official launch of the Blockchain Association — the first Washington, D.C.-based lobbying group dedicated to representing blockchain and digital asset companies in the nation’s capital.
TL;DR
- The Blockchain Association is the first DC lobbying group for the crypto industry
- Founding members include Coinbase and Barry Silbert’s Digital Currency Group
- The group will focus on AML/KYC policy and regulatory framework development
- Launch coincided with a week of unprecedented SEC and FINRA enforcement actions
- Bitcoin traded at $6,517 as the industry navigated its post-boom reckoning
A New Voice in the Capital
The Blockchain Association was established to give cryptocurrency entrepreneurs and investors a unified voice before federal lawmakers and regulators. Headquartered in Washington, D.C., the organization’s founding members include some of the most recognized names in the space — Coinbase, Barry Silbert’s Digital Currency Group, and other prominent blockchain-focused companies.
The association’s primary mission is to work closely with lawmakers on developing anti-money laundering (AML) and Know Your Customer (KYC) policies tailored to the unique characteristics of digital assets, including non-fungible tokens and other blockchain-based instruments. The overarching goal, according to organizers, was to develop a legal and regulatory system that would stand the test of time — a signal that the industry was maturing beyond its Wild West reputation.
Regulatory Storm Provides Backdrop
The timing of the association’s launch was hardly coincidental. The same week saw a barrage of regulatory enforcement actions that underscored the urgent need for clear rules of the road. On September 11, the SEC issued an order against TokenLot, LLC — a self-described ICO superstore — and its founders for operating as an unregistered broker-dealer. The action resulted in sanctions exceeding $560,000 and marked the first time the SEC made such an allegation in the cryptocurrency industry.
In another first, the SEC charged Crypto Asset Management, LP (CAM) and its founder Timothy Enneking for falsely claiming to be the first regulated cryptocurrency fund in the United States while actually operating as an unregistered investment company. CAM agreed to pay a $200,000 penalty without admitting fault.
Meanwhile, FINRA filed its first-ever cryptocurrency disciplinary action against Massachusetts resident Timothy Tilton Ayre for securities fraud involving HempCoin — a token marketed as representing equity ownership in a publicly traded company.
Industry at a Crossroads
With Bitcoin trading around $6,517 and Ethereum at $211 on September 13, the crypto market was deep in its post-ICO bear market. The MVIS CryptoCompare Digital Assets 10 Index had plunged 80% from its January highs — surpassing even the Nasdaq Composite’s 78% decline during the dot-com crash. For an industry hemorrhaging value and credibility, the formation of a professional lobbying presence in Washington represented a critical pivot toward legitimacy.
The Blockchain Association’s creation signaled that the most serious players in crypto understood that sustainable growth required engagement with, rather than avoidance of, the regulatory apparatus. For digital asset creators, NFT developers, and blockchain entrepreneurs, the association promised a seat at the table where the rules governing their industry would be written.
Why This Matters
The September 2018 launch of the Blockchain Association marked a turning point for the cryptocurrency industry’s relationship with Washington. Before this moment, crypto had virtually no organized presence in the capital. The subsequent years would prove that regulatory engagement was not optional — it was existential. Every major regulatory debate since, from stablecoin legislation to NFT classification, has its roots in the precedent set during this pivotal week. The association proved that crypto could play the long game in policy, not just markets.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Past performance is not indicative of future results.