Benzinga - According to a report from OpenSecrets, as of the end of Q3, spending on lobbying by cryptocurrency companies reached $18.96 million, surpassing the $16.1 million spent in the same period last year. This trend indicates that the sector is on track to set a new record for lobbying expenditures in 2023.
What Happened: Data from CoinGecko indicates that Coinbase Global Inc (NASDAQ: COIN) was the highest spender ($2.16 million) in 2023 (as of Nov. 21, 2023) followed by Crypto.com ($1.5 million) owner Foris DAX, Binance with $1.19 million, and the crypto trade group the Blockchain Association ($1.47 million). Kraken stood at $888,000 in crypto lobbying.
OpenSecrets discloses that Binance and Binance.US spent more than $1 million in lobbying politicians. Binance invested $850,000 in 2023, and Binance.US spent $340,000, according to CoinDesk.
In 2023, numerous crypto firms faced lawsuits from the U.S. Securities and Exchange Commission (SEC) for alleged violations of securities laws, prompting many in the cryptocurrency industry to enhance their efforts to comply with regulatory standards. Lobbying saw an uptrend after Coinbase and Binance were sued by the SEC for allegedly failing to register tokens.
“Our goal is to engage directly with policymakers, build relationships, and bridge the education gap to build a commonsense regulatory framework,” Kristin Smith, CEO of the Blockchain Association said in a statement as cited by Reuters.
The now-bankrupt crypto exchange, FTX, was previously part of the highest spenders in 2022. For the full year 2022, companies spent almost $22.2 million on lobbying.
Why Does It Matter: In 2023, alongside addressing regulatory challenges, crypto companies actively pursued favorable legislation in the U.S. House of Representatives. Their efforts bore fruit in July when a congressional committee approved two major bills aimed at clarifying financial regulations for crypto firms. These bills are the Digital Consumer Protection Act and the Lummis-Gillibrand Responsible Financial Innovation Act.
In September, Coinbase launched a grassroots advocacy campaign and is currently looking to more lawmaker meetings in the upcoming weeks, Reuters reported.
Among the 56 crypto companies and organizations that have lobbied in 2023, the top 10 spent a combined $10.81 million to date.
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