Crypto Industry in the U.S. Sets New High in Lobbying Expenditure for 2023

In 2023, the cryptocurrency industry in the United States is poised to set a new record for lobbying expenditures. According to a report by Reuters, data from OpenSecrets reveals that crypto companies had already spent $18.96 million on lobbying activities by the end of the third quarter. This figure represents an increase from the $16.1 million spent during the same period in the previous year.

Leading the charge in lobbying spending is Coinbase, the prominent crypto exchange, which has invested $2.16 million thus far.

Other major contributors to the lobbying efforts include Foris DAX, the owner of Crypto.com, global crypto exchange Binance, and the Blockchain Association, a key trade group in the industry. Requests for comments from these organizations by CoinDesk did not receive immediate responses.

In contrast to the previous year, where the now-bankrupt FTX exchange was among the top spenders in lobbying, the increase in 2023 suggests that other crypto firms are intensifying their efforts. This move is likely an attempt to mitigate the fallout from FTX’s collapse, which culminated in the conviction of its founder, Sam Bankman-Fried, on fraud charges last month.

This year has also witnessed heightened activity from the U.S. Securities and Exchange Commission (SEC), which has been actively suing crypto exchanges for alleged securities law violations. Additionally, the crypto industry continues to await the SEC’s decision on the approval of a spot bitcoin exchange-traded fund (ETF).