Facing regulatory pressure, cryptocurrency industry leaders are shifting strategies, forming a nonprofit aimed at proactively shaping U.S. policy through a neutral platform of "education."
Some prominent figures in the cryptocurrency industry have come together to establish a new nonprofit organization in Washington, pledging to "educate" lawmakers on emerging technologies such as blockchain and artificial intelligence.
However, despite the American Innovation Project (AIP) branding itself as a neutral educational effort, its tax-exempt status and deep ties to cryptocurrency lobbying raise questions about whether it will truly operate outside of politics.
The nonprofit was established to educate policymakers on decentralized technology and is supported by industry leaders.
On Tuesday, Digital Currency Group (DCG), Coinbase, Kraken, Paradigm, Andreessen Horowitz, Uniswap Labs, Solana Policy Research Institute, and Cedar Innovation Foundation announced the formation of AIP, a nonprofit registered under section 501(c)(3) of the tax code.
Schools, churches, and museums share this designation, providing comprehensive tax exemption while limiting public political lobbying.
According to the founders, AIP aims to "facilitate bipartisan informed dialogue" on decentralized technologies ranging from crypto networks to artificial intelligence.
Julie Stitzel, Senior Vice President of Policy at DCG and a driving force behind the initiative, stated that the organization's mission is to translate complex technological developments into "clear, actionable insights" for policymakers and their staff.
“We are purely focused on education,” she emphasized, positioning AIP as a complement to the existing lobbying and advocacy work already being carried out in Washington.
However, the board member list indicates deep ties to the political machinery of the industry. Sitting alongside Stitzel are Kristin Smith, head of the Solana Policy Research Institute; Allie Page, Chief Operating Officer of the Blockchain Association; and Nick Carr, policy strategist at Coinbase.
The politically supportive spending organization Cedar Innovation Foundation provided seed funding for the organization, while DCG contributed $1 million in initial funding.
Smith described the organization's mission as urgent in a statement. "We must provide American leaders with the knowledge, background, and tools they need as they consider rules and regulations for the rapidly evolving technological landscape," she said.
AIP plans to host workshops, roundtables, and closed-door events that bring together lawmakers, industry leaders, and technical experts.
The timing of the release shows its political color. Most of the organization's supporters and board members are currently gathered at the Four Seasons Hotel in Jackson Hole, Wyoming, attending a closed-door cryptocurrency policy summit co-hosted by Kraken and Anthony Scaramucci's SALT.
Attendees included notable figures such as Eric Trump, Senate Banking Committee Chairman Tim Scott (R-SC), Senator Cynthia Lummis (R-WY), SEC Chairman Paul Atkins, and Federal Reserve Governor Michelle Bowman. On Thursday, AIP will host its first private "educational" event alongside the summit.
While the organization emphasizes its nonpartisan, tax-exempt status, critics may question how an organization so closely intertwined with cryptocurrency lobbying can maintain its apolitical stance.
The IRS prohibits 501(c)(3) organizations from having a substantial impact on legislation or serving private interests, but as cryptocurrency giants leverage AIP to position themselves at the core of America's tech policy debate, the line between "education" and "advocacy" may soon be tested.
The launch of AIP coincides with the White House's push for the U.S. to become the "global cryptocurrency capital."
The launch of AIP comes at a moment of rapid regulatory change in Washington. In recent months, U.S. lawmakers have intensified efforts to establish a clearer framework for cryptocurrency.
President Donald recently signed a bill to establish federal standards for stablecoins, while the House passed broader legislation to oversee the industry.
Meanwhile, the SEC has launched "Project Crypto," a program aimed at updating rules regarding custody, trading, and token distribution.
The Commodity Futures Trading Commission (CFTC) has also been taking synchronized action, launching a "cryptocurrency sprint" related to the White House's digital asset agenda. Acting Chair Caroline Pham confirmed that the CFTC is working closely with SEC Chairman Paul Atkins to develop coordinated initiatives.
Previously, the White House released a 166-page report calling for the U.S. to become the "global cryptocurrency capital" through comprehensive reforms.
The report condemned the Biden administration's previous stance toward the industry, arguing it created a "hostile environment" that drove businesses overseas.
Its recommendations include clear jurisdictional boundaries between the SEC and CFTC, new licensing structures for exchanges and custodians, and consumer protection for stablecoins.
The government also reiterated its ban on the development or issuance of a U.S. central bank digital currency, arguing that retail CBDCs would threaten financial sovereignty.
These developments highlight how much progress the crypto industry has made since its "Wild West" reputation a few years ago.
The market value of tokenized U.S. Treasury bonds is now $7.4 billion, with several states exploring strategic Bitcoin reserves, and large financial institutions like Citibank and JPMorgan preparing to offer cryptocurrency custody and investment.
With rising institutional adoption, lobbying efforts in Washington have intensified, and the creation of AIP is the latest sign of the industry's deep integration into the capital's policymaking circles.
