Binance's Recent Increase in Lobbying Investments Preceded Guilty Plea

Cryptocurrency Exchange Binance Ramps Up Lobbying Efforts

Cryptocurrency exchange Binance has significantly increased its investment in lobbying activities over the past two years. According to data from OpenSecrets, Binance and Binance.US spent over $1 million on lobbying politicians between 2022 and 2023. Binance Holdings invested $850,000 in 2023, while Binance.US spent $340,000, both showing a substantial increase compared to the previous year.

Binance.US Takes the Lead

The report reveals that Binance.US was the top spender last year, allocating over $1 million for lobbying efforts specifically focused on Binance.US. In contrast, only $50,000 was spent on lobbying for Binance globally.

These lobbying efforts primarily targeted two bills: the Digital Consumer Protection Act and the Lummis-Gillibrand Responsible Financial Innovation Act.

Other Crypto Companies Join In

Binance is not alone in its lobbying endeavors. Coinbase outpaced Binance by spending approximately $2.1 million on lobbying in 2023. Additionally, Kraken allocated around $888,000 towards lobbying efforts this year.

A total of 56 companies have collectively invested an estimated $20 million in crypto-related lobbying in the U.S., with Coinbase leading among cryptocurrency firms. Furthermore, just ten companies have contributed more than half of the industry’s resources dedicated to influencing government officials.

Hot Take: Cryptocurrency Exchanges Amp Up Political Influence

Cryptocurrency exchanges like Binance and Coinbase are intensifying their efforts to influence U.S. policymakers through increased investments in lobbying activities. With millions of dollars being poured into shaping regulations and legislation, these exchanges are aiming to secure favorable outcomes for the industry. As the crypto market continues to expand, the battle for regulatory clarity and acceptance becomes increasingly crucial. The growing influence of exchanges in political circles highlights the significance of government engagement in shaping the future of cryptocurrencies.