New York’s Blockchain and Key Industry Group Is Leaving State Ahead of Promising Federal Regulatory Clash

The organization will shift its attention back to pushing government officials and regulators in the nation’s capital.

The Blockchain Association, a lobbying organization for the cryptocurrency business, is leaving the Big Apple in preparation for a battle against the federal government’s tightening regulations on the sector.

“Blockchain Association is shifting resources out of New York State to focus on federal policy,” CEO Kristin Smith of the Blockchain Association told CoinDesk through a spokesman. Our goal of securing crypto’s bright future in the States has not changed.

This comes after New York Governor Kathy Hochul approved a bill in January prohibiting the use of certain mining for crypto. New York is the pioneer in this regard since it is the first state to outlaw the practice. This comes after the multi-billion dollar collapse of the centralized cryptocurrency exchange FTX and the subsequent crackdown on the digital assets market by federal officials.

The SEC has taken action against major industry players in recent months, leading to the current downturn in the digital asset market. These include the centralized cryptocurrency exchanges Bittrex, Kraken, and Gemini; the crypto lender Genesis (owned by CoinDesk parent company Digital Currency Group); and individuals like Tron founder Justin Sun.

A recent series of high-profile crackdowns has caused disapproval among crypto enthusiasts, who have called on authorities to clarify current regulatory standards to make it possible for cryptocurrency enterprises to register with the federal agency.

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