US crypto lobbying spending has approached $19 million since the beginning of the year

What’s new? According to representatives of the non-profit research group OpenSecrets, by the end of the year, the expenses of crypto companies lobbying their interests in the United States will set an absolute record. For the first three quarters, $18,96 million was spent for these purposes, while for the whole of last year, about $22 million. At the moment, the rating is again headed by the largest US crypto exchange Coinbase with expenses of $2,16 million.

Material by Reuters

What else is known? Also at the top of the ranking in terms of spending on promotion among lawmakers are Foris DAX, which operates the Crypto com exchange, Blockchain Association, and Binance Holdings. Kristin Smith, CEO of the Blockchain Association, notes that the organization seeks to engage directly with policymakers and address their knowledge gaps about the crypto industry to form an adequate regulatory framework.

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According to OpenSecrets, lobbyists have become more active directly in Washington, D.C., where federal legislative bodies are located. Analysts attribute this to an attempt to repair the industry’s reputation after the collapse of Sam Bankman-Fried’s FTX exchange, who had previously traveled to Washington repeatedly to meet with senior officials. He was found guilty of fraud by a jury in November and now awaits the verdict to be announced, the maximum penalty could be 115 years in prison.

In July, crypto companies managed to promote friendly legislation for consideration by congressmen. Thus, the specialized committee of the House of Representatives passed two major bills that will clarify the application of already existing financial regulations to crypto firms.

To enter into force, the documents will need to be approved by both houses of Congress, and companies intend to continue working in this direction. Thus, Coinbase will hold several more meetings with officials in the coming weeks.

Earlier, Paradigm Policy Director, Justin Slaughter, said that the process of creating a regulatory framework for cryptocurrencies in the United States will not resume until after the 2024 election cycle. Businessman Kevin O’Leary believes that spot exchange-traded funds (ETFs) based on cryptocurrencies in the United States will not be approved under the current leadership of the Securities and Exchange Commission (SEC).