According to data provided by nonprofit research group OpenSecrets, the cryptocurrency industry was on track to set a new record for federal lobbying spending, following a year in which businesses dashed to salvage their reputations and push business-friendly legislation.
During the first three quarters of 2023, cryptocurrency companies spent $18.96 million on lobbying, up from $16.1 million in the same period in 2022. That was despite the notable collapse of the cryptocurrency exchange FTX, a top-ten spender, last year. Businesses, including FTX, collectively spent close to $22 million on lobbying last year.
With $2.16 million, the biggest U.S. cryptocurrency exchange, Coinbase (COIN.O), once again led the field. Foris DAX, the company that runs Crypto.com, the Blockchain Association, and Binance Holdings followed.
The CEO of the Blockchain Association, Kristin Smith, stated in a statement, “Our goal is to engage directly with policymakers, build relationships, and bridge the education gap to build a commonsense regulatory framework.”
To restore their reputations after a series of scandals in the past year including the demise of FTX, whose former CEO Sam Bankman-Fried was well-known in the state, cryptocurrency companies have been growing in Washington. A Manhattan federal court jury last month found him guilty of fraud.
Additionally, cryptocurrency companies have been attempting to fend off increased regulatory scrutiny, particularly from the US Securities and Exchange Commission, which claims the sector has been breaking its regulations. After Coinbase and Binance were sued by the SEC in June for allegedly failing to register tokens—claims they vigorously contest—lobbying intensified.
Moreover, the industry has been pressuring the SEC to authorize a spot bitcoin exchange-traded fund (ETF), which would allow millions more investors to access the biggest cryptocurrency in the world. Assumptions that the product will be approved by the agency following a summer court ruling on the issue drove Bitcoin to a 20-month high on Monday.
Furthermore, cryptocurrency companies have been working to pass legislation in the House of Representatives. In July, a congressional committee in that body passed two significant bills that, according to lobbyists, would help clarify which current financial regulations apply to cryptocurrency companies.
Crypto lobbyists are not slowing down, even though those bills have not progressed much. According to a spokesperson, Coinbase, which started a grassroots advocacy campaign in September, will be meeting with more lawmakers in the upcoming weeks as part of its ongoing campaign. Requests for comment from Binance and Crypto.com were not answered.
- Published By Team Genuine Reporter