The fintech industry has long been saddled with the reputation of being a haven for scamsters to steal from mom and pop investors and a mechanism by which mobsters and other no-goodniks launder their money.
But the long process of change could be about to start with the launch of HODLpac, writes California Western’s Professor James Cooper in a recent op-ed published on Coindesk.
HODLpac is a new political action committee for the cryptocurrency world. It is designed to provide clarity as well as legitimacy for fintech, writes Cooper, and is an important step toward the maturation of the industry.
HODLpac’s mission is to support current and future members of the United States Congress that promote the development of cryptocurrencies and the decentralized economy.
Donors will vote to decide where the PAC’s money goes and to determine its priorities.
When individuals donate to HODLpac, they receive an equivalent number of “votes,” explains Cooper. HODLpac plans to use quadratic voting, a system by which a group of people can choose a collective good for themselves. In essence, people can buy votes for or against a specific proposal by paying into a fund the square of the number of votes that they buy.
In the context of a political action committee, a donor chooses multiple recipients, but each subsequent recipient receives a smaller share of that donor’s vote, continues Cooper. This process allows donors to express the degree of their preference and not just direct where their respective funds go. Quadratic voting can ensure that individuals who donate larger amounts do not have an exaggerated influence on their destination.
HODLpac is also important because there is much education to be done, writes Cooper. There is a public education aspect, which is critical because few members of Congress understand this burgeoning industry. It is unlikely that any U.S. legislator can explain a “smart contract,” never mind a “decentralized cryptographic ledger.”
HODLpac might not be the first group out there to fashion legislation for the cryptocurrency industry. Still, it could become a very important player as we emerge from the current crypto winter, concludes Cooper.
If the United States is to become the true global leader in the fintech industry, HODLpac and other blockchain-friendly lobbyists will be necessary.
Read James Cooper’s complete Coindesk op-ed here.