US crypto industry lobby spending on track for new record in 2023
THE cryptocurrency industry in the US is on track to hit a new record for federal lobbying spending, after a year in which firms scrambled to repair their reputations and advance friendly legislation, data provided to Reuters by non-profit research group OpenSecrets showed.
Crypto companies spent US$18.96 million in the first three quarters of 2023 on lobbying, compared with US$16.1 million during the same period in 2022. That was despite last year’s spectacular meltdown of crypto exchange FTX, which had been a top-10 spender. Last year, companies including FTX spent nearly US$22 million on lobbying in total.
Coinbase, the largest US crypto exchange, led the pack again, spending US$2.16 million, followed by Foris DAX, which operates Crypto.com, the Blockchain Association and Binance Holdings.
“Our goal is to engage directly with policymakers, build relationships and bridge the education gap to build a common-sense regulatory framework,” said Kristin Smith, CEO of the Blockchain Association.
Crypto companies have been expanding in Washington, in part to try to mend their reputations following a string of scandals last year, including the collapse of FTX. The exchange’s former CEO Sam Bankman-Fried had been a familiar presence in Washington; he was found guilty of fraud last month by a jury in a Manhattan federal court.
Crypto firms have also been trying to combat growing regulatory scrutiny, especially from the US Securities and Exchange Commission (SEC), which has said the industry has been flouting its rules.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Lobbying escalated after the SEC sued Coinbase and Binance in June for allegedly failing to register tokens, claims which they deny.
The industry has also been pushing the SEC to approve a spot Bitcoin exchange-traded fund (ETF), which would open up the world’s largest cryptocurrency to millions more investors.
Optimism that the agency will green-light the product after losing to a key court on the matter in the summer helped drive Bitcoin to a 20-month high on Monday (Dec 4).
Crypto companies have also been trying to advance friendly legislation in the House of Representatives. They scored a victory in July, when a congressional committee in that chamber passed two major bills that lobbyists have said would help provide clarity over which existing financial rules apply to crypto companies.
Although those bills have yet to advance further, crypto lobbyists are not letting up. Coinbase, which in September launched a grassroots advocacy campaign, is continuing its push with more lawmaker meetings in coming weeks, a spokesperson said.
Binance and Crypto.com did not respond to requests for comment.
Share with us your feedback on BT's products and services
