The cryptocurrency sector geared up for record federal lobbying expenditure, with firms aiming to repair their image and push favorable regulations. According to OpenSecrets data, crypto companies spent $18.96 million on lobbying in the first three quarters of 2023, marking an increase from $16.1 million during the same period in 2022. Despite FTX’s significant collapse last year, which impacted their spending, crypto entities spent almost $22 million on lobbying in total.
Coinbase, leading the charge among U.S. exchanges, spent $2.16 million, followed by Foris DAX, the operator of Crypto.com, the Blockchain Association, and Binance Holdings.
Kristin Smith, CEO of the Blockchain Association, emphasized their aim to interact directly with policymakers, build rapport, and bridge the knowledge gap to establish sensible regulatory frameworks.
Seeking redemption after past scandals and facing mounting regulatory scrutiny, crypto firms have expanded their presence in Washington. The sector faced challenges, including FTX’s CEO being found guilty of fraud. Regulatory tensions escalated after the SEC’s legal action against Coinbase and Binance in June, alleging rule violations.
Efforts to secure approval for a spot bitcoin exchange-traded fund (ETF) saw optimism rise after the SEC’s legal setback during the summer. Crypto companies also pursued favorable legislation in Congress, celebrating initial success with two bills passing a House committee in July. Despite ongoing efforts, these bills are yet to progress, prompting continued lobbying efforts. Coinbase’s grassroots advocacy campaign persists, planning further meetings with lawmakers in the near future.
