U.S. Crypto Lobbying Expenses Surged Significantly in 2023, Heading Towards Historic High
In Brief
The US crypto industry is set to break its own record for federal lobbying spending in 2023, as firms intensify efforts to repair reputations.
The US cryptocurrency industry is on track to hit a new record in federal lobbying spending in 2023. The surge in lobbying investment comes as firms seek to restore their reputations and promote crypto-friendly legislation, according to data from OpenSecrets.
Crypto companies have spent $18.96 million on lobbying in the first three quarters of 2023, surpassing the $16.1 million spent in the same period in 2022. This increase occurred despite the high-profile collapse of FTX, a former top spender in the sector.
Coinbase led the lobbying efforts, spending $2.16 million, followed by Foris DAX (Crypto.com), the Blockchain Association and Binance Holdings. These companies have been actively engaging with policymakers to shape a regulatory framework favorable to the crypto industry.
“Our goal is to engage directly with policymakers, build relationships and bridge the education gap to build a commonsense regulatory framework,” said Kristin Smith, CEO of the Blockchain Association, in a statement.
Following scandals like the FTX collapse, crypto companies have been expanding their presence in Washington. Sam Bankman-Fried, FTX’s former CEO, was a familiar face in Washington before being found guilty of fraud.
Legal Battles Spur Increased Crypto Lobbying
The industry has faced growing scrutiny from the U.S. Securities and Exchange Commission, particularly after lawsuits against Coinbase and Binance. These challenges have fueled the industry’s lobbying efforts.
Crypto firms have been pushing for the SEC’s approval of a spot Bitcoin ETF, which could expose Bitcoin to more investors. They also achieved a legislative victory in July when congressional committees passed bills providing clarity for crypto companies.
Despite legislative hurdles, firms like Coinbase continue their lobbying push with more lawmaker meetings. These ongoing efforts reflect the industry’s commitment to shaping a more crypto-friendly legislative and regulatory environment.
As the crypto industry navigates this crucial phase, its increased lobbying efforts signify a strategic attempt to influence policy and regulatory outcomes favorably. The industry’s engagement in US could play a pivotal role in shaping the future of digital currency regulations and acceptance.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
