US Crypto Industry Spends $3 Million More on Lobbying in 2023
Companies in the US crypto and blockchain industry have reportedly increased their spending on lobbying by approximately $3 million in the first three quarters of 2023 compared to the same period in 2022. According to data from US government transparency group Open Secrets, these companies spent around $19 million on lobbying from January to September 2023, representing a 19% increase from the previous year. Leading the spending was Coinbase, with over $2 million, followed by Crypto.com, Blockchain Association, and Binance.
Past Spending by FTX and Regulatory Uncertainty
FTX, before its collapse in November 2022, had been one of the major spenders in the crypto space on political donations and marketing efforts. Former FTX CEO Sam Bankman-Fried used customer deposits to donate millions to political campaigns and was later found guilty of fraud-related charges. To address regulatory uncertainty surrounding digital assets, executives from crypto firms often visit Washington, D.C., to meet with lawmakers. Coinbase CEO Brian Armstrong has also engaged in discussions with lawmakers regarding digital asset regulation.
Hot Take: Increased Lobbying Reflects Growing Influence of Crypto Industry
The significant increase in lobbying spending by the US crypto and blockchain industry indicates its growing influence and desire for clearer regulations. With companies like Coinbase leading the way, it is evident that these firms are actively engaging with lawmakers to shape policies that will benefit their industry. However, the past actions of certain individuals, such as Sam Bankman-Fried, highlight the need for transparency and ethical practices within the sector. As crypto continues to gain mainstream attention, it is crucial for regulators and industry players to work together towards a balanced framework that fosters innovation while protecting investors.
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