In a surprising turn of events, the US crypto sector is reportedly set to shatter its own record for federal lobbying expenditures this year.
Nonprofit research group OpenSecrets reports that crypto companies collectively dished out a staggering $18.96 million on lobbying during the initial three quarters of 2023, eclipsing the $16.1 million spent in the corresponding period last year.
US Crypto Lobbying Rises
According to a recent report from Reuters, the surge in lobbying comes as crypto firms grapple with a tumultuous year, navigating reputational hurdles and actively promoting legislation in their favor.
Notably, this financial commitment persisted even after the collapse of crypto exchange FTX.
Last year’s total lobbying expenditure reportedly amounted to nearly $22 million.
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It notes that crypto exchange Coinbase has poured $2.16 million into lobbying efforts.
Other key contributors include Foris DAX, operator of Crypto.com, the Blockchain Association, and Binance Holdings.
Goal Is To Foster Relationships
Kristin Smith, CEO of the Blockchain Association, outlined the industry’s strategic approach to Reuters.
Smith stated, “Our objective is direct engagement with policymakers to foster relationships and address knowledge gaps. Ultimately establishing a sensible regulatory framework.”
However, it reiterates crypto companies are strategically expanding their footprint in Washington, aiming to rectify reputational dents from the past year’s controversies.
Besides navigating regulatory scrutiny, the sector faces ongoing legal battles, with the U.S. Securities and Exchange Commission (SEC) suing Coinbase and Binance in June for alleged rule violations.
Meanwhile, anticipation is high for SEC approval of a spot bitcoin exchange-traded fund (ETF), a potential game-changer in expanding cryptocurrency accessibility.
Positive momentum builds on the SEC’s recent loss in its court battle against Ripple.
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