The Washington Power in the Crypto World

By: David Christopher

Translated by: Saoirse, Foresight News

The policy infrastructure of the crypto industry has matured significantly over the past decade.

What began as a single think tank in Washington, D.C., has evolved into a comprehensive network comprising industry associations, advocacy organizations, and ecosystem-specific lobbying entities.

Today’s landscape includes both broad-based industry groups and specialized advocates focused on individual ecosystems—each playing distinct roles in advancing regulatory clarity.

In February 2026, the Hyperliquid Policy Center officially launched, becoming the latest addition; prior to that, the Solana Policy Institute debuted in 2025.

Let’s take a closer look at the institutions shaping crypto policy in Washington, D.C.

Coin Center (2014)

The earliest crypto policy think tank.

Coin Center has operated in Washington, D.C. for over a decade, consistently advocating for open blockchain networks and user rights—and remains the most ideologically libertarian organization in the industry.

Unlike other organizations primarily driven by industry interests, Coin Center prioritizes representing individual users: defending their rights to self-custody, privacy protection, and using crypto assets without burdensome tax constraints.

Its core 2026 objectives include:

• Advocating for the “Keep Your Coins Act,” which would prohibit federal bans on self-custody;
• Supporting the Blockchain Regulatory Certainty Act (BRCA), clarifying that developers who do not hold users’ funds should not be classified as money transmitters;
• Proposing detailed tax reforms: establishing a $600 de minimis exemption for small transactions, simplifying cost-basis reporting, and taxing staking rewards only upon sale—not upon receipt.

Taxation of staking rewards is a widespread industry pain point.

Currently, the U.S. Internal Revenue Service (IRS) treats newly minted tokens from staking as taxable income in the year received—forcing validators to pay taxes before selling any assets, resulting in high compliance costs.

Coin Center argues staking rewards should be treated like other generative assets—taxed only upon sale.

Blockchain Association (BA, 2018)

The largest U.S. crypto industry association, representing over 100 member organizations—including exchanges, mining firms, DeFi protocols, and infrastructure providers.

Where Coin Center speaks from principle, the Blockchain Association operates as a coalition—coordinating member interests and translating them into legislative priorities.

Current priorities include:

• Tax equity, market structure legislation, and DeFi protections;
• Formally releasing tax principles calling for a de minimis exemption, treating stablecoins as cash equivalents, and localizing perpetual futures;
• Strongly supporting BRCA and broader developer protections.

DeFi Education Fund (DEF, 2021)

Originally funded by Uniswap governance, DEF focuses exclusively on decentralized finance.

Its work rests on three pillars: protecting software developers, empowering DeFi users, and defending permissionless blockchains.

At the developer level:

DEF advocates exempting builders from liability when third parties misuse their tools—and opposes forcing developers into regulatory frameworks designed for custodial intermediaries. Like Coin Center and the Blockchain Association, DEF strongly supports BRCA.

At the user level:

It advances self-custody rights, privacy protections, reduced reliance on trusted third parties, and financial inclusion—emphasizing how permissionless networks let users bypass gatekeepers and access financial services freely.

DEF’s approach leans more toward legal action and research: filing amicus briefs, submitting regulatory comments, publishing accessible explainers, operating the high-impact newsletter *DeFi Debrief*, and persistently pushing for BRCA’s inclusion in broader market-structure legislation.

Solana Policy Institute (2025)

The industry’s first policy institution dedicated exclusively to a public blockchain ecosystem—co-founded by the former CEO of the DeFi Education Fund and the former CEO of the Blockchain Association.

While sharing core industry demands (e.g., developer protections, staking tax reform), it also closely aligns with Solana’s ecosystem strategy.

Key agenda items:

• Project Open: Promoting a securities tokenization pilot, enabling issuers to register equity as digital tokens on public blockchains—delivering instant settlement and transparent ownership records—and positioning Solana as infrastructure for scaling traditional capital markets;
• Supporting the “Equal Opportunity for All Investors Act”: Expanding the definition of “accredited investor” beyond wealth thresholds to include knowledge-based qualifications. The institute notes current rules exclude 87% of Americans from private markets.

Hyperliquid Policy Center (2026)

The newest—and most vertically focused—crypto policy institution, established with a $29 million investment from the Hyper Foundation, with one singular mission: enabling compliant, onshore perpetual futures trading in the United States.

Led by the former Chief Policy Officer of the Blockchain Association, the HPC precisely targets the regulatory void around decentralized derivatives—a core business line for Hyperliquid and one of crypto’s fastest-growing sectors.

Institutional goals:

Educating policymakers on how non-custodial trading protocols operate—and advocating for a regulatory framework that does not require intermediated custody.

Timing is highly strategic:

With the Clarity Act stalled in the Senate, the HPC is seizing this window to specifically shape regulators’ understanding of DeFi derivatives.

Its central argument:

Perpetual futures markets will inevitably migrate overseas or onto decentralized protocols—so the U.S. must either build a competitive framework or cede the entire market.

Data shows perpetual futures trading volume reached $92.7 trillion in 2025.

Industry Consensus and Divergence

Though these five institutions differ in scope and focus, they share strong alignment on core priorities:

Shared goals:

• Developer protection: Nearly all support BRCA, affirming that developers who do not hold users’ funds are not money transmitters;
• Staking tax reform: Block rewards/staking rewards taxed only upon sale—not upon receipt;
• User self-custody rights;
• A de minimis exemption for small transactions.

Divergent emphases:

• Coin Center: Ideologically grounded, emphasizing privacy and user rights;
• Blockchain Association: Coordinating interests across 100+ industry members;
• DeFi Education Fund: Deep specialization in DeFi-specific regulation and legal support;
• Solana / Hyperliquid policy institutions: Ecosystem-specific agendas tightly aligned with core business lines (e.g., securities tokenization, perpetual futures).

Together, these institutions define the industry’s foundational values while preserving dedicated space to advance critical niche issues—marking the U.S. crypto industry’s transition from unified advocacy to a professionalized, ecosystem-driven, and highly granular era of policy engagement.