Home Crypto industry sets new record in lobbying spending amid regulatory challenges

Crypto industry sets new record in lobbying spending amid regulatory challenges

The cryptocurrency industry is on track to set a new record for federal lobbying spending in 2023. According to data from OpenSecrets and reported by Reuters, a nonprofit research group, crypto companies have already spent $18.96 million on lobbying in the first three quarters of the year. This figure surpasses the $16.1 million spent during the same period in 2022 and is approaching last year’s total of nearly $22 million.

The increase in lobbying efforts comes in the wake of several high-profile scandals and regulatory challenges faced by the industry. Notably, the collapse of the crypto exchange FTX, a top-ten spender in lobbying last year, has prompted firms to actively engage in reputation management and legislative advocacy.

Leading the lobbying expenditure is Coinbase, the largest U.S. crypto exchange, which has spent $2.16 million. Other significant spenders include Foris DAX, the operator of Crypto.com, the Blockchain Association, and Binance Holdings.

Navigating regulatory challenges and SEC scrutiny of crypto

Kristin Smith, CEO of the Blockchain Association, emphasized the importance of direct engagement with policymakers to bridge the education gap and establish a sensible regulatory framework. This sentiment reflects the industry’s broader strategy to navigate the increasingly complex regulatory landscape.

The industry’s lobbying efforts have intensified particularly in response to actions by the U.S. Securities and Exchange Commission. The SEC has accused the sector of flouting rules and sued Coinbase and Binance for allegedly failing to register tokens, claims both companies deny.

Another key focus for crypto lobbyists has been the push for the SEC to approve a spot Bitcoin exchange-traded fund. The optimism surrounding this potential approval, especially after a key court ruling in the summer, contributed to Bitcoin reaching a 20-month high on today.

In Congress, the industry scored a legislative victory in July when a House committee passed two major bills aimed at providing clarity on the application of existing financial rules to crypto companies. While these bills have not progressed further, lobbying efforts continue unabated.

Coinbase, in particular, has ramped up its advocacy efforts, launching a grassroots campaign in September and planning more lawmaker meetings in the coming weeks.

As the cryptocurrency industry navigates a challenging regulatory environment and seeks to repair its public image, its increased investment in lobbying signifies a strategic effort to shape policy and regulation in its favor.

About ReadWrite’s Editorial Process

The ReadWrite Editorial policy involves closely monitoring the tech industry for major developments, new product launches, AI breakthroughs, video game releases and other newsworthy events. Editors assign relevant stories to staff writers or freelance contributors with expertise in each particular topic area. Before publication, articles go through a rigorous round of editing for accuracy, clarity, and to ensure adherence to ReadWrite's style guidelines.

Maxwell Nelson
Tech Journalist

Maxwell Nelson, a seasoned journalist and content strategist, has contributed to industry-leading platforms, weaving complex narratives into insightful articles that resonate with a broad readership.

Get the biggest tech headlines of the day delivered to your inbox

    By signing up, you agree to our Terms and Privacy Policy. Unsubscribe anytime.

    Tech News

    Explore the latest in tech with our Tech News. We cut through the noise for concise, relevant updates, keeping you informed about the rapidly evolving tech landscape with curated content that separates signal from noise.

    In-Depth Tech Stories

    Explore tech impact in In-Depth Stories. Narrative data journalism offers comprehensive analyses, revealing stories behind data. Understand industry trends for a deeper perspective on tech's intricate relationships with society.

    Expert Reviews

    Empower decisions with Expert Reviews, merging industry expertise and insightful analysis. Delve into tech intricacies, get the best deals, and stay ahead with our trustworthy guide to navigating the ever-changing tech market.