The Crypto Industry’s Record Lobbying Spending in 2023
Crypto Industry’s Lobbying Spending Surge
The cryptocurrency industry has seen a surge in federal lobbying spending, with firms aiming to repair their reputations and advocate for favorable legislation. Data from nonprofit research group OpenSecrets revealed that crypto companies spent $18.96 million on lobbying in the first three quarters of 2023, compared to $16.1 million during the same period in 2022.
Key Players and Their Contributions
Leading the pack is Coinbase, the largest U.S. crypto exchange, which spent $2.16 million on lobbying. Other major contributors include Foris, operator of Crypto.com, the Blockchain Association, and Binance Holdings. These companies are actively engaging with policymakers to establish a regulatory framework that aligns with their business goals.
Challenges and Regulatory Scrutiny
The crypto industry has been grappling with reputational damage and increased regulatory scrutiny, particularly from the U.S. Securities and Exchange Commission (SEC). Companies such as Coinbase and Binance have faced legal action from the SEC, prompting intensified lobbying efforts to address regulatory concerns.
Push for Regulatory Clarity and Legislation
The industry is lobbying for the approval of a spot bitcoin exchange-traded fund (ETF) and advocating for legislation that provides clarity on existing financial rules applicable to crypto companies. Despite facing setbacks, crypto lobbyists remain persistent in their efforts to influence policy and regulation.
Industry Expansion in Washington
Crypto firms have expanded their presence in Washington, seeking to mend their reputations and counter negative perceptions. These efforts have also involved engaging with lawmakers and advocating for favorable legislation, as evidenced by Coinbase’s grassroots advocacy campaign and ongoing lawmaker meetings.
Future Outlook and Continued Advocacy
Despite the challenges and regulatory hurdles, the crypto industry remains optimistic about its lobbying efforts and the potential for positive regulatory outcomes. Companies such as Coinbase are committed to continuing their advocacy work, further highlighting the industry’s determination to shape regulatory frameworks in its favor.
