Cryptocurrency Industry Set to Break Federal Lobbying Spending Record
Researchers at OpenSecrets have discovered that the cryptocurrency industry is on track to achieve a new high in federal lobbying expenditure. This surge in spending follows a challenging year for firms as they worked towards rebuilding their reputations and advocating for more favorable legislation.
During the first three quarters of 2023, cryptocurrency companies collectively spent $18.96 million on lobbying efforts, surpassing the $16.1 million spent during the same period in 2022. In total, these firms allocated nearly $22 million towards lobbying last year, which included contributions from the now-defunct FTX crypto exchange.
The largest US cryptocurrency exchange, Coinbase (COIN.O), secured the top spot on the list with $2.16 million spent on lobbying. Other significant contributors included Foris DAX (operator of Crypto.com), Blockchain Association, and Binance Holdings.
Rebuilding Reputation and Tackling Regulatory Scrutiny
Industry experts highlight that cryptocurrency companies are striving to enhance their reputation following a series of scandals in recent years, including the collapse of FTX. Additionally, these firms are grappling with increasing regulatory scrutiny, particularly from the US Securities and Exchange Commission (SEC), which accuses the industry of violating its regulations.
OpenSecrets reports that both Binance and Binance.US invested over $1 million in lobbying efforts. Binance Holdings spent $850,000 in 2023, while Binance.US allocated $340,000—both figures significantly higher than the previous year.
The focus of these lobbying endeavors in 2022 centered around two specific bills: the Digital Consumer Protection Act and the Lummis-Gillibrand Responsible Financial Innovation Act.
Hot Take: Cryptocurrency Industry Ramps Up Lobbying Spending Amidst Rebuilding Efforts and Regulatory Scrutiny
The cryptocurrency industry is making a significant push in federal lobbying spending as it aims to rebuild its reputation and navigate the increasing regulatory scrutiny. OpenSecrets’ findings reveal that firms in the sector are on track to set a new record in lobbying expenditure, with a total of $18.96 million spent during the first three quarters of 2023. Leading the pack is Coinbase, the largest US cryptocurrency exchange, followed by Foris DAX, Blockchain Association, and Binance Holdings. This surge in lobbying spending comes after a challenging year for the industry, marked by reputational damage and regulatory tensions. As cryptocurrency companies seek to shape more favorable legislation, their lobbying efforts are expected to remain robust.
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