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Press Release

Consumer Group Warns Regulators of FTX CEO’s influence on Upcoming Cryptocurrency Regulations

Washington, D.C. – Today the Consumer Choice Center sent a letter to Senators and Representatives involved in crafting and approving future cryptocurrency regulations, warning them of the substance of regulatory recommendations made by FTX CEO Sam Bankman-Fried, which he made in a recent company blog post.

Bankman-Fried has, in recent years, become a primary player in American domestic politics, pledging to spend up to $1 billion to fund the Democratic Party’s 2024 efforts, and a notable figure promoting cryptocurrency regulatory policy — much of which would benefit his company and properties.

Yaël Ossowski, deputy director of the consumer advocacy group Consumer Choice Center, said “The reason for cautioning lawmakers is that the decentralization that powers the entire crypto ecosystem is at stake if they only hear from vested interests from oscillating agendas that won’t necessarily favor consumers.

“For those of us with a significant consumer interest in Bitcoin and other cryptocurrencies — protocols designed to be decentralized — to see so much capital and control vested in one person who has a major influence in crafting legislation to impact millions is a warning sign,” added Ossowski.

“Users of decentralized technologies do not need an industry approach to regulation. Regulations exist to set the rules of the game, not to chart the leaders of the game. The main caution we invoke is that many proposed regulations aim to cement existing industry players and lockout innovative upstarts, while at the same time requiring the same restrictive rules that caused many people to explore cryptocurrencies in the first place.

“Recent comments and suggestions by FTX CEO and noted Democratic Party fundraiser Sam Bankman-Fried, especially, leave us concerned. If rules on crypto and its customers help solidify the financial portfolios, positions, and stock prices of only a select few companies, this will drive innovation away from American shores. While many proposals laid out by Mr. Bankman-Fried do address consumer needs — especially as it relates to hacks, scams, and protection of funds — his recommendations for a highly licensed regime on all sides of digital transactions, especially Decentralized Finance (DeFi), go against the spirit of why cryptocurrencies were created in the first place,” he said.

“Last year, my colleagues and I at the Consumer Choice Center released our Principles for Smart Crypto Regulation, underscoring the need for preventing fraud, pursuing technological neutrality, reasonably low taxation, and legal certainty and transparency, which we believe will be a better framework for future regulation.

“It would benefit us all if future rules help empower consumers and the firms they interact with, punish fraud, abuse, and insider trading, and provide financial transparency.  The whims of a select few industry players, however successful they may be, cannot be the guiding light for the future of decentralized digital money,” concluded Ossowski.

***CCC Deputy Director Yaël Ossowski is available to speak with accredited media on consumer regulations and consumer choice issues. Please send media inquiries to yael@consumerchoicecenter.org.***

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The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Washington, Ottawa, Brussels, Geneva, and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

Nobody needs a car trade war

Brussels, BE: In recent comments, French president Emmanuel Macron has suggested that the European Union should use protectionist measures to defend Europe’s electric car industry. Macron pointed to the fact that rental car companies are buying Chinese electric vehicles and voiced the view that Europe does not have adequate means to protect its manufacturers. Commenting on the statements by the French president, Consumer Choice Center’s Senior Policy Analyst Bill Wirtz says that protectionism is ill-advised:

“If countries such as the United States or China are suspected of unfairly favouring their industries, then France needs to take this up at the WTO level, not trying to emulate their policies within the European Union”, says Wirtz.

“Protectionism is often sold to us as a duty to protect our industries when in reality, it hurts consumers on all sides alike. Consumers need choices on the marketplace to make informed decisions for their own comfort and their pocketbooks. Reducing the number of competitors will only make things worse.”

“Emmanuel Macron’s notion of European sovereignty ought to be about creating a business environment that favours innovation, not the stepping stone for another trade war”, concludes Wirtz.

Former Hungarian MP Zoltán Kész joins Consumer Choice Center Staff

Brussels, BE: The Consumer Choice Center (CCC), the global consumer advocacy group, has announced that Zoltán Kész has joined the organisation as a Government Affairs Manager.

Zoltán was the director of the Free Market Foundation when he entered Hungarian politics in 2015. He won a by-election as an independent, breaking the two-thirds majority of the governing Fidesz party in February, 2015. He was a member of the Hungarian Parliament and remained independent until 2018.

Commenting on his new role, Zoltán Kész said:

“I am really grateful for the opportunity to join the CCC. I have been familiar with the work of most of the individuals on the team, and I find their commitment to defending and promoting more choice and freedom for consumers all over the world very fascinating. I am looking forward to working for CCC and helping to broaden the political network in order to achieve more policy goals in the future.”

Fred Roeder, the Managing Director of the CCC said:

“We are thrilled to welcome Zoltán Kész as a Government Affairs Manager. He is an excellent addition to our growing team, and we’re confident that his immense experience and expertise will be instrumental in taking our work around Europe to the next level.”

President Biden Must Waive the Jones Act Immediately to Help Hurricane Victims

In the aftermath of the devastating Hurricane Fiona in Puerto Rico, a ship containing 300,000 barrels of desperately-needed diesel fuel is waiting offshore until it can secure an exemption to the 1920 Jones Act, mandating only US ships can ship goods between US ports, among other protectionist restrictions.

Puerto Rico Governor Pedro Pierlusi has called on the federal government to grant the waiver immediately.

The Consumer Choice Center calls the Biden Administration’s indecision a “crippling example of the harms of restricting trade and commerce for nationalistic and political gain, and why the Jones Act must be immediately waived and then repealed.”

“President Biden’s Administration can immediately waive the Jones Act to speed rescue and recovery operations in Puerto Rico and along America’s coasts. The fact that desperate people, in the wake of hurricanes and natural disasters, must continuously ask the federal government to temporarily waive this law demonstrates it is no longer fit for purpose and should be repealed altogether,” said Yaël Ossowski, deputy director of the Consumer Choice Center, a global consumer advocacy group.

“For too long, the Jones Act has acted as a protectionist racket, benefiting shipbuilding union leaders at the expense of American consumers and entrepreneurs. The OECD estimates that a repeal of the Jones Act would benefit the American economy by up to $64 billion, lowering prices for consumers and offering new opportunities for investment and innovation.

“The fact that we are in a time of economic uncertainty, high gas prices, and rising inflation, and the Biden Administration and its agencies are more focused on protecting their labor union constituents, rather than citizens in need, is a crippling example of the harms of restricting trade and commerce for nationalistic and political gain, and why the Jones Act must be immediately waived and then repealed,” said Ossowski.

“The Consumer Choice Center supports the efforts of Sen. Mike Lee (R-UT) and Rep. Tom McClintock (R-CA) to do just that with the Open America’s Water Act. Congress can do its part to support these bills and give people relief today and going forward. “Consumers and citizens deserve better,” added Ossowski.

On our syndicated radio program Consumer Choice Radio, we interviewed Colin Grabow, a policy analyst at the Cato Institute’s Herbert A. Stiefel Center for Trade Policy Studies, on how the Jones Act is making people poorer. WATCH HERE.

Thailand takes the dangerous path of denying harm reducing alternatives

Thailand’s Public Health Minister and Deputy Prime Minister Anutin Charnvirakul said last week that the importation and production ban on vaping products will continue, depriving Thai smokers of provable alternatives to quit.

“Thailand’s failure to acknowledge the powerful benefits of harm reduction — specifically in vaping products and other nicotine alternatives — shows that they are letting down the 15.4 million Thai smokers,” said Tarmizi bin Anuwar, an associate at the Consumer Choice Center.

“There is a reason that countries such as Japan, and more recently the Phillippines have embraced these novel technologies, empowering their own people and giving them legal alternatives to save lives. The government must take an evidence-based policy approach in developing policy to ensure that the government does not do wrong actions,” he added.

“Every health ministry in the world is looking for solutions to reduce the use of combustible tobacco by their populations. While they continue searching, nicotine alternatives such as vaping have proven to be a gateway away from smoking and are now a key tool for harm reduction globally,” said Yaël Ossowski, deputy director at the Consumer Choice Center.

“If the Thai government continues its prohibition on nicotine alternatives, they are depriving their citizens of other means of putting down the cigarette. This impacts every segment of society — young and old — and will have real health consequences.

“To demonstrate to the international community that Thailand is serious about this issue, they should empower their consumers and entrepreneurs to deliver the solutions that have already driven record-low smoking rates in other countries, by embracing and legalizing vaping products and nicotine alternatives,” said Ossowski.

“Otherwise, smokers will be forced to turn to illicit markets to find these products that are widely available outside the country, which will be harmful for society overall.”

UK is Right to Delay the Decision on China’s Semiconductor Takeover

The UK government has decided to delay its decision on whether China can take over the UK’s largest semiconductor company. In May, an inquiry into the state of UK chips was announced.

The Consumer Choice Center, a global consumer advocacy group, welcomed the decision, arguing that at a time of great geopolitical turbulence and global chip shortages, the UK should indeed be extremely cautious about any dealings with China.

“China is well-known for building back-doors into its technologies, spying, and breaching users’ privacy. For that reason, the fact that China owns major chip firms in the UK and aspires to expand is concerning. To compensate for the once lenient approach towards Chinese expansion into the UK semiconductor sector, the government should now focus on enhancing domestic semiconductor production,” said Maria Chaplia, Research Manager at the Consumer Choice Center.

“Regaining a competitive edge in the semiconductor industry is vital, but it is impossible without taking an evidence-based approach to PFAS, a grouping of 4000+ man-made chemicals, which are vital for the production of semiconductors. If the UK is serious about increasing domestic chip production, they have to also work to secure the key inputs involved in the production process, and PFAS are one of those key inputs.” said David Clement, North American Affairs Manager at the Consumer Choice Center.

“British green groups have been fear mongering around PFAS, but the UK government should prioritise long-term national security and consumer welfare over populist claims,” added Chaplia.

“With the global chip shortage, the UK has a unique chance to become a semiconductor powerhouse if it doesn’t ban PFAS. Among other things, this will ensure the UK can effectively counter China’s increased chip manufacturing. The UK government shouldn’t succumb to Chinese influence and calls to ban all PFAS,” concluded Chaplia.

Consumer group says TRIPS deal sets a dangerous precedent for the future of prosperity

GEVENA, Switzerland — Last night, the World Trade Organisation (WTO) agreed to waive patents on COVID-19 vaccines, known as the Trade-Related Aspects of Intellectual Property Rights (TRIPS) flexibility. The historic decision had been in the making for over two years, with developing countries putting enormous pressure on the WTO and its members to strike a deal. The United Kingdom, once fervently opposed to the TRIPS waiver, was among the last countries to drop its opposition.

Under the agreed deal, third-party suppliers will be allowed to produce COVID-19 vaccines without seeking the consent of the patent owner.

In response, the Consumer Choice Center (CCC), a global consumer advocacy group, criticised the deal, stressing that the TRIPS flexibility represented a significant blow to the future of innovation and prosperity globally. The TRIPS waiver threatens the safety of consumers in the developing world, as vaccines will likely be produced without any respect for the high standards, set by patent owners. 

“There is a sense that some countries and people at the WTO put the deal on TRIPS at the core of their legacy. Instead of bettering the world and increasing COVID-19 protection, the move will be remembered as a grave mistake that threw our prosperity under the bus. We must do everything we can to prevent further waivers,” said Fred Roeder, managing director at the Consumer Choice Center.

Maria Chaplia, research manager at the Consumer Choice Center, said: “While the TRIPS waiver seems like a quick fix, the consequences of such a move will be dire. We have too many challenges ahead of us, and millions in Europe and beyond still await life-saving Alzheimer’s, Cystic Fibrosis, Diabetes, or HIV/AIDS treatment. The risk of more patent waivers being introduced in the future reduces the incentive to innovate across the board.”

“There is no guarantee that generic vaccines will increase the vaccination rates in developing countries, considering high rates of vaccine hesitancy in Africa, Malaysia, Myanmar, Philippines, Thailand, and Vietnam, to name a few. Trading the future of the planet and next generations for a few million unsafe vaccines, which people in developing countries might refuse to take, doesn’t seem like a fair calculus,” concluded Chaplia.

***CCC Research Manager Maria Chaplia is available to speak with accredited media on consumer regulations and consumer choice issues. Please send media inquiries to maria@consumerchoicecenter.org***

The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Ottawa, Washington, Brussels, Geneva and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

UK PFAS Ban Could Undermine Semiconductor Manufacturing Efforts

London, UK: A new report published by the Consumer Choice Center highlights how calls for heavy handed chemical policy could exacerbate the state of the UK’s semiconductor production.

Maria Chaplia, Research Manager at the Consumer Choice Center explained: “A few weeks ago, the UK announced an inquiry into the state of UK chips. The global microchip shortage has hampered UK car production in 2021, with limited signs of recovery. As the security concerns over UK semiconductor firms, sold to China, continue to grow, boosting domestic production should be a priority. However, regaining a competitive edge in the semiconductor industry is impossible without a flexible evidence-based stance on PFAS.

PFAS are the next target of green groups. As the pressure to ban PFAS in the UK builds up, the evidence should prevail.

“PFAS, a grouping of 4000+ man-made chemicals, are vital for the production of semiconductors, and if the UK follows these green groups and bans their use, increasing domestic chip manufacturing will be incredibly difficult. If the UK is serious about increasing domestic chip production, they have to also work to secure the key inputs involved in the production process, and PFAS are one of those key inputs.” said David Clement, an author of the report.

“In fact, we know that this is what will happen if the UK opts for a phase out. This is exactly what happened when Belgium paused production at a PFAS chemical plant in response to the tightening of environmental regulations. Reporting done by Business Korea highlighted that semiconductor producers have only 30 to 90 days of coolant inventory left before they will encounter serious production problems.” said Clement.

“With the global chip shortage, the UK has a unique chance to become a semiconductor powerhouse if it doesn’t ban PFAS. Among other things, this will ensure the UK can effectively counter China’s increased chip manufacturing. Banning PFAS would achieve nothing but feed the green groups with yet another socially disruptive victory and shift the production of chips elsewhere. The UK government shouldn’t succumb to calls to ban all PFAS,” concluded Chaplia.

New York lawmakers just killed Bitcoin and crypto mining and consumers will suffer

Albany, NY – Early this morning, the New York State Senate joined with the State Assembly to pass a moratorium on Bitcoin and cryptocurrency mining, issuing yet another reminder that state lawmakers want to deny their residents from interacting with cryptocurrencies.

The law would prevent new permits from being issued to carbon-based fueled proof-of-work mining operations that use behind-the-meter energy, putting millions of dollars worth of investments into jeopardy. This follows the logic of the much-derided BitLicense regulation, which has made it nearly impossible for small and medium-sized firms to offer crypto services to New York residents.

“By passing this bill, New York lawmakers are unequivocally stating they want their residents completely locked out of cryptocurrencies, from generation and mining services to actually being able to easily buy them through an exchange,” said Yaël Ossowski, deputy director of the Consumer Choice Center, a consumer advocacy group.

“If Gov. Hochul signs this bill, it will drive a stake through the Bitcoin mining industry, and states like Florida, Montana, Utah, and Texas will rejoice at the opportunity to invite those entrepreneurs and innovators to establish operations in their states.

“Because Bitcoin, and cryptocurrencies more broadly, will serve a vital role in making finance more inclusive and accessible for sending, receiving, and saving value, we hold it in the interest of consumers that the hashrate (the total computing power of the network) continue to grow, and that better public policy on cryptocurrencies is embraced among states.

“New York, however, has decided to take the NIMBY approach and deny their residents that opportunity,” added Ossowski.

“Cryptocurrency generation and mining firms have an incentive to use the most affordable and renewable energy sources available, and the data backs up this claim. This is a win-win scenario for towns and localities with these facilities, for employees of these firms, residents in these towns that benefit from increased commerce, and energy customers overall,” said Ossowski.

“As cryptocurrency mining proliferated in New York, it opened up new entrepreneurial activities that helped improve the lives of New Yorkers in small communities and large urban centers alike. Passing a ban on these activities, in pursuit of an unclear climate goal, will negate these gains. There is a better path,” added Ossowski.

“The aim of embracing climate goals to ensure 100% renewable energy usage in cryptocurrency generation and mining is well-intended, but a complete ban will have a devastating impact on innovators and entrepreneurs hosting their facilities in the state of New York, and consumers and investors that rely on their services,” said Aleksandar Kokotovic, crypto fellow at the Consumer Choice Center. 

“We understand that the quick rise of cryptocurrency mining raises many questions for residents, particularly when it involves the local economy and environment. However, a more prudent path would be an environmental review conducted by relevant authorities, rather than a wholesale ban and moratorium that would put many projects in legal jeopardy,” added Kokotovic.

***CCC Deputy Director Yaël Ossowski is available to speak on consumer regulations and consumer choice issues. Please send media inquiries to yael@consumerchoicecenter.org.***

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The CCC represents consumers in over 100 countries across the globe. We closely monitor regulatory trends in Washington, Ottawa, Brussels, Geneva, and other hotspots of regulation and inform and activate consumers to fight for #ConsumerChoice. Learn more at consumerchoicecenter.org.

New Yorkers need prudence, not bans, on Bitcoin and cryptocurrency mining

On May 24, 2022, the Consumer Choice Center sent a letter to New York state lawmakers, warning of the potential consequences to consumers if bill S6486D was adopted, a moratorium on Bitcoin and cryptocurrency mining.

The full letter is available below, or in PDF version here.

Dear Senators,

We write to you to urge you to vote against S6486D, a companion bill to A7389C, which would order a state-wide moratorium on cryptocurrency generation or mining.

If passed, this bill would be a death blow to the Bitcoin and cryptocurrency industry, resulting in thousands of jobs lost in New York, a loss of capital to scale up renewable energy, and would harm all potential benefits to consumers from cryptocurrency projects and initiatives. 

The aim of embracing climate goals to ensure 100% renewable energy usage in cryptocurrency generation and mining is well-intended, but a complete ban will have a devastating impact on innovators and entrepreneurs hosting their facilities in the state of New York, and consumers and investors that rely on their services.

As a consumer group, it may seem odd for us to weigh in on a topic that affects mostly industry players and firms. However, because we believe that Bitcoin, and cryptocurrencies more broadly, will serve a vital role in making finance and economics more inclusive and accessible for sending, receiving, and saving value, we hold it in the interest of consumers that the hashrate (the total computing power of the network) continue to grow, and that better public policy on cryptocurrencies is embraced among state legislatures.

If the Bitcoin hashrate grows specifically in the United States, then we will have more control in how mining develops and how it can benefit the country, its citizens, and our energy grids.. This last part is vital for climate goals, which cannot be said for China or other nations.

According to the latest figures from the first quarter of 2022 on Bitcoin mining specifically, 58.4% of miners are using renewable energy sources, and that number has only increased in several years. In New York, many firms are retooling abandoned processing and power generation plants to build cryptocurrency data centers, and are providing economic value in return that is putting renewable energy to work.

What’s more, this wide-ranging energy diversification is happening at a pace faster than any other industry, leading to more investment in renewable energy capacities and delivery systems. This increased demand is leading to more environmentally favorable energy delivery for customers of all public electricity utilities, and will also help bring down costs. And this is being carried out due to the incentives of firms and individuals who participate in adding hash rate to mining: they want to lower their costs and find better alternatives. 

Cryptocurrency generation and mining firms have an incentive to use the most affordable and renewable energy sources available, and the data backs up this claim. This is a win-win scenario for towns and localities with these facilities, for employees of these firms, residents in these towns that benefit from increased commerce, and energy customers overall.

As cryptocurrency mining has proliferated in New York, it has opened up new entrepreneurial activities that will help improve the lives of New Yorkers in small communities and large urban centers alike. Entertaining a ban on these activities, in pursuit of an unclear climate goal, will negate these gains. There is a better path.

It should not surprise you to know that New York’s previous policy decisions, including the highly criticized BitLicense, have locked many New Yorkers out of the new cryptocurrency ecosystem due to the high compliance costs. Some New Yorkers have chosen to change residences in order to acquire cryptocurrency or to invest in crypto businesses, which they can do in any other state, but more specifically Texas, Wyoming, and Florida.

If this moratorium on cryptocurrency generation comes to pass, it will be yet another signal to entrepreneurs and consumers that Bitcoin and other cryptocurrencies are not welcomed in New York, and the regulatory framework is too unfavorable to justify investing here.

A number of industry organizations, communities, and unions have already expressed their concerns about the impact this bill would have on their families and livelihoods, fearing potential job loss in case industry gets driven away from the state as a result of this legislation. The loss of future investments and new jobs is another concern expressed by many communities in cities such as Rochester, Albany, and Syracuse.

According to the May 2022 Empire State Manufacturing Survey, the general business conditions index has dropped thirty-six points statewide. The last thing many affected and marginalized communities need is a moratorium that would drive businesses away from the state, and keep millions of New Yorkers from being included in a new system of value.

We understand that the quick rise of cryptocurrency mining raises many questions for residents, particularly when it involves the local economy and environment. However, a more prudent path would be an environmental review conducted by relevant authorities, rather than a wholesale ban and moratorium that would put many projects in legal jeopardy.

As consumer advocates, we are strongly opposed to this bill. We believe that New York residents deserve a chance to take part in the nascent industry that so many other states are hoping to accommodate. Using the force of regulation to drive away investments and jobs, stop economic progress, and shut out millions of New Yorkers from a more inclusive financial system would not only be wrong, but it would also be negligent.

Please vote No on S6486D aiming to place a moratorium on proof-of-work and help New York become a hub of innovation that embraces new technologies. New Yorkers should have the opportunity to participate in one of the biggest innovations of our age. With your vote against this bill and a more prudent direction, we can ensure that will happen.

Sincerely Yours,

Yaël Ossowski

Deputy Director

Aleksandar Kokotovic

Crypto Fellow

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