Crypto Lobbying Group Pushes “Blockchain Basics Act”
Last year, an advocacy group called the Satoshi Action Fund secured a big win for the cryptocurrency industry by passing “Right to Mine” laws in Arkansas and Montana, which prevent state and local governments from “discriminating” against crypto. The legislation protects cryptocurrency and associated industries from additional taxation or other types of regulation, including specific zoning ordinances for noisy mining facilities. In practice, the laws have frustrated some residents, who say the constant hum of cooling fans is negatively impacting property values, wildlife, and public health. 
 
Now, the Satoshi Fund is pushing a more ambitious piece of legislation, which it calls the Blockchain Basics Act. As of yesterday, Satoshi CEO Dennis Porter claimed the bill had been introduced in ten states. In addition to all the protections contained in the Right to Mine laws, the Blockchain Basics Act includes language that would prevent cryptocurrency mining operations from being classified as securities by states. The legislation has already been introduced in Georgia, where a senior official from the Secretary of State’s office pointed out that her agency needed to be able to treat cryptocurrency mines as securities in order to prosecute fraud. “Passing this law as it is drafted would shut down our ability to do these investigations and leave defrauded Georgian investors with less protections and deplete their life savings,” she said. 
 
TTP published a report on the crypto industry’s state lobbying efforts in April of 2022, which involved packing obscure state advisory boards with advocates who could push favorable regulations. Crypto lobbying spending has only increased since then, as the industry fights federal oversight and pushes for favorable outcomes at the state level.