Cryptocurrency Industry Spends Record $18.96 Million in Federal Lobbying So Far in 2023

Last updated:
Author
Author
Ruholamin Haqshanas
About Author

Ruholamin Haqshanas is a contributing crypto writer for CryptoNews. He is a crypto and finance journalist with over four years of experience. Ruholamin has been featured in several high-profile crypto...

Last updated:
Why Trust Cryptonews
Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews
Source: AdobeStock

The cryptocurrency industry has spent a staggering $18.96 million in federal lobbying in the first three quarters of 2023.

The figure surpasses the $16.1 million spent during the same period in 2022, Reuters reported, citing data from nonprofit research group OpenSecrets. 

The record-breaking spending occurred despite the high-profile collapse of crypto exchange FTX last year, which had previously ranked among the top ten lobbying spenders. 

In 2022, crypto companies, including FTX, collectively invested nearly $22 million in lobbying efforts.

Leading the pack once again is Coinbase, the largest cryptocurrency exchange in the United States, which spent $2.16 million on lobbying. 

Other prominent spenders include Foris DAX, the operator of Crypto.com, the Blockchain Association, and Binance Holdings.

“Our goal is to engage directly with policymakers, build relationships, and bridge the education gap to build a commonsense regulatory framework,” said Kristin Smith, CEO of the Blockchain Association.

The cryptocurrency companies’ increased presence in Washington reflects their efforts to mend their reputations following a series of scandals that unfolded last year. 

One notable incident was the collapse of FTX, whose former CEO, Sam Bankman-Fried, had been a familiar figure in Washington. 

In a Manhattan federal court, Bankman-Fried was recently found guilty of fraud.

In addition to reputation management, crypto firms are grappling with mounting regulatory scrutiny, particularly from the U.S. Securities and Exchange Commission (SEC), which accuses the industry of non-compliance with its rules. 

The SEC’s lawsuits against Coinbase and Binance in June, alleging failure to register tokens, have become focal points for the industry’s lobbying efforts.

Furthermore, the cryptocurrency industry has been advocating for the SEC’s approval of a spot bitcoin exchange-traded fund (ETF). 

Such approval would open doors for millions of new investors to access the world’s largest cryptocurrency. 

Optimism surrounding this possibility, fueled by the SEC’s loss in a key court battle over the matter in the summer, propelled Bitcoin to a 20-month high recently.

Crypto Companies Work to Advance Crypto Bills

Crypto companies have also been working to advance legislation in the House of Representatives. In July, they celebrated a victory as a congressional committee passed two significant bills. These bills aim to provide clarity on which existing financial regulations apply to crypto companies. Although further progress is required for these bills to become law, crypto lobbyists remain steadfast in their efforts.Coinbase, which launched a grassroots advocacy campaign in September, continues to push for its cause with scheduled meetings with lawmakers in the coming weeks.In August, the platform also launched a crypto advocacy group tasked with promoting the interests of the crypto community. Dubbed Stand with Crypto Alliance, the independent nonprofit organization aims to mobilize support for legislation that would create a regulatory framework for digital assets in the US.

More Articles

Price Analysis
$TRUMP Pumping Over 20% This Week: Presidential Memecoin Back for Good?
Arslan Butt
Arslan Butt
2025-02-15 15:26:50
Price Analysis
Study Predicts Bitcoin Surge to $1M by Early 2027: Is That Possible?
Arslan Butt
Arslan Butt
2025-02-15 14:45:43
Crypto News in numbers
editors
Authors List + 66 More
2M+
Active Monthly Users Around the World
250+
Guides and Reviews Articles
8
Years on the Market
70
International Team Authors