In a Surprising Turn of Events, the US Crypto Sector Sets Record for Lobbying Expenditures
According to nonprofit research group OpenSecrets, the US crypto sector is on track to break its own record for federal lobbying expenditures in 2023. In the initial three quarters of the year, crypto companies spent a staggering $18.96 million on lobbying, surpassing last year’s expenditure of $16.1 million during the same period.
US Crypto Lobbying Rises Amidst Challenges
A recent report from Reuters reveals that the surge in lobbying by crypto firms comes as they face a tumultuous year and work to navigate reputational challenges while actively promoting favorable legislation. This commitment to lobbying persisted even after the collapse of FTX, a major crypto exchange. Last year, total lobbying expenses in the industry reached nearly $22 million.
Goal Is to Foster Relationships with Policymakers
Kristin Smith, CEO of the Blockchain Association, explains that the objective of crypto companies’ lobbying efforts is to engage directly with policymakers and establish relationships while addressing knowledge gaps. Their ultimate goal is to establish a sensible regulatory framework for the industry. The expansion of their presence in Washington is also aimed at repairing reputational damage caused by controversies in the past year.
Ongoing Challenges and Potential Game-Changers
In addition to regulatory scrutiny, the crypto sector is currently facing legal battles, with Coinbase and Binance being sued by the SEC for alleged rule violations. However, there is anticipation for SEC approval of a spot bitcoin exchange-traded fund (ETF), which could significantly expand cryptocurrency accessibility. Positive momentum builds on the SEC’s recent loss in its court battle against Ripple.
Hot Take: US Crypto Sector Breaks Records with Lobbying Expenditures Amidst Challenges
The US crypto sector has surprised many by spending a record-breaking amount on federal lobbying this year. Despite facing reputational hurdles and legal battles, crypto companies have collectively invested $18.96 million in lobbying efforts, surpassing last year’s expenditure. The goal of this lobbying is to foster relationships with policymakers and establish a sensible regulatory framework for the industry. While challenges persist, such as ongoing legal battles and regulatory scrutiny, there is hope for positive change with the potential approval of a bitcoin ETF. The sector’s commitment to lobbying reflects its determination to overcome obstacles and shape the future of cryptocurrencies in the US.
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