Scrutiny by Legislators on Apple’s App Store Policies Regarding Cryptocurrency and NFTs

Apple Inc. is facing increased scrutiny over its app store practices, this time with a focus on cryptocurrency trading and non-fungible tokens (NFTs). House Representatives Gus Bilirakis and Jan Schakowsky have written a letter to Apple CEO Tim Cook, expressing concerns about the company’s App Store policies and their potential impact on blockchain and cryptocurrency technologies. In their letter, they specifically mention Apple’s use of its guidelines to prioritize its own profits and reduce the utility of apps related to blockchain and NFTs.

One example cited by the lawmakers is the case of Coinbase, a cryptocurrency exchange, which claims that Apple forced it to remove NFT transfers from its wallet app in iOS. Other NFT companies have made similar allegations, stating that Apple pressured them to release Lite versions of their apps. These incidents contribute to the broader worry that Apple’s app store policies may hinder American leadership in emerging technologies like blockchain.

Seeking clarification, Bilirakis and Schakowsky have submitted 21 detailed questions to Apple, with a deadline of August 14th, 2023, for responses. The questions cover topics such as sideloading, app admittance policies, data privacy and security standards, and Apple’s plans to utilize blockchain-related technologies.

The cryptocurrency industry has reacted positively to the congressional inquiry. Sheila Warren, CEO of the Crypto Council, sees it as proof that crypto is not a partisan issue. She emphasizes the importance of both sides of the aisle taking the future of blockchain and cryptocurrency technologies seriously.

Paul Grewal, Chief Legal Officer at Coinbase, has expressed frustration over Apple’s inconsistent application of its App Store policies. He questions whether Americans are well-served by the arbitrary enforcement of rules by a single corporation. Grewal believes it is time to reconsider our approach to digital currencies and the underlying technologies.

The scrutiny of Apple’s app store practices reflects the growing importance of blockchain and cryptocurrency technologies in the development of innovative solutions. It highlights the need for clear and fair policies that encourage innovation and support American technological leadership. Apple will need to provide satisfactory answers to the questions posed by Congress to address these concerns and ensure a conducive environment for the growth of blockchain and cryptocurrency industries.