The leading cryptocurrency asset manager, Grayscale Investments, has donated $1 million to the non-profit think tank focused on public privacy in the crypto ecosystem – Coin Center. Additionally, Grayscale has vowed to match every other donation up to $1 million through February 2021.
Grayscale Donates $1M To Coin Center
Based in Washington, DC, Coin Center is a non-profit research and advocacy center aiming to resolve public issues within the cryptocurrency field and decentralized computing technology projects. Its mission is to enhance mainstream understanding of the digital asset space and simplify a regulatory climate that “preserves the freedom to innovate using permissionless blockchain technology.”
Earlier today, Michael Sonnenshein, the recently-appointed CEO of Grayscale Investments, announced the donation, saying that his company has followed a previous example set by Kraken.
The veteran US exchange paved the way in 2018 with a $1 million donation. The total amount grew to $3 million as other firms followed, and Kraken matched their initiatives.
“There’s not been a better time to invest in the growth of this industry, following a year which saw cryptocurrencies becoming recognized as a bona fide asset class, enjoying the participation of the broader investment community and notable financial services institutions.” – commented Sonnenshein.
Interestingly, Grayscale’s CEO also pushed other prominent figures within the cryptocurrency industry to follow the example. Some of those names included Binance CEO Changpeng Zhao (CZ), the Winklevoss twins, MicroStrategy’s Michael Saylor, and Coinbase’s Brian Armstrong.
Coin Center’s Influence On FinCEN’s Crypto Regulations
Sonnenshein pointed out that Coin Center had played a “key role in correcting issues” in the recently proposed crypto regulations by the US Treasury’s Financial Crimes Enforcement Network (FinCEN).
As previously reported, the agency proposed legislation that would require US-based cryptocurrency businesses to keep verified identities, records of customers’ transactions, and counterparties above specific thresholds, if implemented.
Most potentially affected companies opposed the new rule. So far, FinCEN extended the feedback timeframe, while the Biden administration paused its review.
Apart from its involvement in this case, Coin Center’s executive director Jerry Brito promised that his project will utilize the donated funds to fight for clear and supportive crypto regulations:
“We exist to ensure that there’s a voice in Washington for open, permissionless cryptocurrency networks, which are public goods from which everyone benefits. The funds we raise are crucial to helping our team do all we can in ensuring that the ecosystem continues to mature and grow.”