Cryptocurrency Industry Sets New Record for Federal Lobbying Spending
The cryptocurrency industry has broken records by spending $18.96 million on federal lobbying in the first three quarters of 2023, surpassing the $16.1 million spent during the same period last year. This information comes from nonprofit research group OpenSecrets.
Despite FTX Collapse, Crypto Companies Increase Lobbying Efforts
Even with the collapse of FTX, a major crypto exchange, last year, the industry’s lobbying spending has increased. In 2022, crypto companies, including FTX, spent nearly $22 million on lobbying. Leading the pack this year is Coinbase, the largest US-based cryptocurrency exchange, which spent $2.16 million on lobbying.
Crypto Firms Seek to Mend Reputations and Navigate Regulatory Scrutiny
The increased presence of cryptocurrency companies in Washington reflects their efforts to repair their reputations following scandals and deal with growing regulatory scrutiny. The industry has faced lawsuits from the US Securities and Exchange Commission (SEC) for non-compliance with its rules.
Pushing for Legislation and SEC Approval of Bitcoin ETF
Crypto companies are also working to advance legislation in the House of Representatives to provide clarity on financial regulations for the industry. Additionally, they are advocating for the SEC’s approval of a spot bitcoin exchange-traded fund (ETF), which could open doors for new investors and boost Bitcoin’s value.
Hot Take: Cryptocurrency Industry Invests Heavily in Lobbying to Shape Regulation
The cryptocurrency industry’s significant spending on federal lobbying demonstrates its determination to shape regulation and create a favorable environment for digital assets. Despite challenges such as reputational damage and regulatory scrutiny, crypto companies are actively engaging with policymakers to bridge the education gap and build a commonsense regulatory framework. With the industry’s increased presence in Washington, it remains to be seen how these lobbying efforts will impact future regulations and the overall growth of the cryptocurrency market.
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