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According to data by nonprofit research organisation OpenSecrets, the crypto industry is on course to set a new record for spending on lobbying the US government, following a year in which businesses scurried to salvage their reputations and push pro-crypto-business legislation.
During the first three quarters of 2023, cryptocurrency firms spent $18.96 million on lobbying, up from $16.1 million in the same period in 2022. That occurred despite the notable collapse of the cryptocurrency exchange FTX, a top 10 spender, last year.
Businesses, including FTX, spent nearly $22 million on lobbying last year.
With $2.16 million, Coinbase, the biggest cryptocurrency exchange in the United States, once again led the field. Foris DAX, the company behind Crypto.com, the Blockchain Association, and Binance Holdings were next in line.
Cryptocurrency firms have been growing in Washington to restore their reputations after a series of scandals in 2018, including the demise of FTX, whose former CEO, Sam Bankman-Fried, was well-known in the state.
A Manhattan federal court jury last month convicted him guilty of fraud.
Additionally, crypto companies have been attempting to stave off increased regulatory attention, particularly from the US SEC, which claims the sector has been breaking its regulations, calling the industry the ''Wild West.''
After Coinbase and Binance were sued by the SEC in June for allegedly neglecting to register tokens — claims they vigorously contest — lobbying intensified.
Additionally, the sector has been pressuring the SEC to authorise a spot bitcoin exchange-traded fund (ETF), allowing millions more investors to access the biggest crypto in the world.
Assumptions that the agency would approve the product following a summer court ruling drive Bitcoin to new highs.