Crypto Industry Increases Lobbying Spending Amid Regulatory Uncertainty in the U.S.
Summary:
U.S. businesses tied to the blockchain and cryptocurrency industry reportedly spent around $3 million more on lobbying in the first three quarters of 2023 compared to the same period in 2022. Cryptocurrency exchange Coinbase was the top spender on lobbying at over $2 million, while former FTX CEO Sam Bankman-Fried was found guilty of using customer deposits for political donations. The increased lobbying expenditure reflects the ongoing regulatory uncertainty surrounding digital assets in the U.S.
Businesses linked to the blockchain and cryptocurrency sector in the U.S. are said to have invested approximately $3 million more in lobbying activities during the first three quarters of 2023 than they did in the corresponding period of 2022. Data sourced from Open Secrets, a U.S. transparency organization, and reported by Reuters on December 5, indicated that these companies shelled out about $19 million on lobbying from January to September in 2023, marking a surge of around 19% from the same months in the previous year. The leader in lobbying expenditure was Coinbase, with a spend exceeding $2 million, with Crypto.com, the Blockchain Association, and Binance trailing behind it.
FTX, prior to its downfall in November 2022, used to be among the biggest contributors to U.S. lawmakers’ campaign donations and promotional efforts in the crypto space. Its former CEO Sam Bankman-Fried was found guilty on seven charges relating to fraudulent activities at the exchange and notably utilized customer funds to make massive political campaign donations.
Several entities in the crypto sector assert that the U.S. exhibits considerable regulatory ambiguity concerning digital assets, leading company executives to occasionally visit Washington, D.C. to engage with lawmakers. Bankman-Fried’s alleged donations to politicians - most of which were later reimbursed - is an example. Another instance is that of Brian Armstrong, the CEO of Coinbase, who has reportedly had several discussions with numerous lawmakers, presumably concerning digital currency regulations.
Published At
12/5/2023 11:15:58 PM
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