The data provided by the nonprofit research group OpenSecrets indicates that the cryptocurrency industry was on the verge of achieving a new record in federal lobbying spending, following a year of efforts by companies to repair their reputation and boost friendly legislation. Cryptocurrency companies spent $18.96 million in the first three quarters of 2023 on lobbying, compared to $16.1 million during the same period in 2022. This is despite the collapse of the trading giant FTX last year, which was among the largest spenders. Last year, companies including FTX spent nearly $22 million on lobbying overall.
Industry Leadership
The major U.S. cryptocurrency exchange “Coinbase” again led the list, spending $2.16 million, followed by “Foris DAX,” which operates the Crypto.com platform, the Blockchain Association, and Binance Holdings.
Expansion in Washington
Cryptocurrency companies expanded their presence in Washington, partly to try to repair their reputation after a series of scandals last year, including the collapse of FTX, whose former CEO Sam Bankman-Fried was a familiar presence in Washington. He was convicted of fraud last month by a jury in a federal court in Manhattan.
Fighting Regulatory Scrutiny
Companies also attempted to combat increasing regulatory scrutiny, especially from the U.S. Securities and Exchange Commission, which claims that the industry is violating its rules. Lobbying efforts intensified after the SEC filed lawsuits against Coinbase and Binance in June for not registering tokens, which they denied.
Friendly Legislation
The industry has also sought to push the SEC to approve the cryptocurrency Bitcoin Exchange-Traded Fund (ETF), which would open the door for more investors to enter the largest digital currency in the world. Optimism that the agency would approve the product after losing a major court battle in the summer has helped push Bitcoin’s price to a 20-month high on Monday.
Continuing Lobbying Efforts
Although these bills have not yet progressed, cryptocurrency companies have not halted their lobbying efforts. Coinbase, which launched an advertising campaign in September, continues its efforts with more meetings with members of Congress in the coming weeks, according to a company spokesperson.
Binance and Crypto.com did not respond to requests for comment.
Source: Hannah Lang in Washington; edited by Michelle Price and Matthew Lewis
Our Standards: Thomson Reuters Trust Principles.
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