Cryptocurrency Industry Sees Surge in Lobbying Spending
According to a report by Reuters, the cryptocurrency industry has experienced a significant increase in lobbying spending as companies work to repair their reputations and advocate for favorable legislation. Despite facing regulatory scrutiny and high-profile scandals, crypto companies have invested substantial resources in engaging with policymakers and establishing a reasonable regulatory framework.
Crypto Companies Increase Lobbying Expenditure
Data from nonprofit research group OpenSecrets reveals that cryptocurrency companies spent a record-breaking $18.96 million on lobbying during the first three quarters of 2023. This marks a notable increase from the $16.1 million spent during the same period in 2022. Even though FTX, one of the top spenders from the previous year, collapsed, crypto companies still allocated significant funds to lobbying efforts.
Top Spenders and Their Objectives
Leading the pack in lobbying spending is Coinbase, the largest cryptocurrency exchange in the United States, with an investment of $2.16 million. Other major spenders include Foris DAX, the operator of Crypto.com, the Blockchain Association, and Binance Holdings. These companies believe that engaging directly with policymakers and building relationships is crucial in establishing a sensible regulatory framework.
Favorable Legislation as a Key Goal
A primary objective driving these lobbying efforts is securing approval from the SEC for a spot Bitcoin exchange-traded fund (ETF). The industry believes that such approval would attract millions of new investors and lead to further mainstream adoption, along with significant price gains. Crypto companies have also sought to advance legislation in the House of Representatives to clarify existing financial rules for digital asset companies.
Persistence in Lobbying Efforts
Despite ongoing challenges, crypto lobbyists remain persistent. Coinbase, for example, launched a grassroots advocacy campaign and plans to continue engaging with lawmakers through further meetings. The outcome of these lobbying efforts and regulatory developments will shape the future landscape of cryptocurrencies and their acceptance within traditional financial systems.
Hot Take: Lobbying Becomes Vital for Crypto Industry
The cryptocurrency industry is increasingly recognizing the importance of lobbying as a means to repair reputations, advocate for favorable legislation, and establish a practical regulatory framework. With companies investing significant resources in engaging with policymakers and building relationships, lobbying spending has surged to record-breaking levels. The industry’s key objectives include securing SEC approval for a spot Bitcoin ETF and advancing legislation in the House of Representatives. Despite challenges and regulatory scrutiny, crypto companies remain persistent in their efforts. The outcome of ongoing lobbying endeavors will undoubtedly shape the future landscape of cryptocurrencies and their broader acceptance within traditional financial systems.
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