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Record 2023 US Crypto Lobbying Expenditure
Crypto | Dec 4, 2023
Image by Freepik
US cryptocurrency industry sets a new record in federal lobbying expenditure in 2023
In 2023, the US cryptocurrency industry is on track to surpass its previous record in federal lobbying spending. As reported by Reuters, according to OpenSecrets, a nonprofit research group, crypto companies have already spent $18.96 million in the first three quarters, exceeding the $16.1 million spent during the same period in 2022.
A look back to 2021: Crypto lobbying is going off the charts
This surge in lobbying efforts comes in the wake of reputational damage and the need for favorable legislation, despite the high-profile collapse of FTX, a major spender in this arena last year.
Why It's Important
This record spending in lobbying by the US crypto industry highlights the sector's determination to influence policy and regulatory frameworks amid increasing scrutiny and regulatory challenges. This trend signals crypto's evolving role and the need for clear regulatory guidelines which is crucial for its long-term stability and growth.
Questions and Answers
How much has the cryptocurrency industry spent on lobbying in the first three quarters of 2023?
- The cryptocurrency industry spent $18.96 million on lobbying in the first three quarters of 2023, marking a significant increase from the previous year.
Which companies are leading the lobbying expenditure in the US crypto industry?
- Coinbase, the largest US crypto exchange, is leading the lobbying expenditure, followed by Foris DAX (operating Crypto.com), the Blockchain Association, and Binance Holdings.
See: Unraveling Crypto’s Role in Global Terrorist Financing
What are the main reasons behind the increased lobbying spending by the crypto industry?
- The increased lobbying spending is primarily to repair reputations following scandals like the FTX collapse and to navigate the growing regulatory scrutiny from bodies like the US Securities and Exchange Commission (SEC).
What are the legislative goals of the crypto industry in their lobbying efforts?
- The crypto industry's legislative goals include combating SEC lawsuits, advocating for the approval of a spot bitcoin exchange-traded fund (ETF), and advancing crypto-friendly legislation in the House of Representatives.
Despite the passage of major bills, what is the ongoing advocacy strategy of the crypto industry?
- Despite the passage of major bills in the House committee, the crypto industry continues its advocacy efforts. For instance, Coinbase has launched a grassroots campaign and is planning more meetings with lawmakers to further their objectives.
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