OpenSecrets researchers have found that the cryptocurrency industry is on track to set a new record for federal lobbying spending.
The record spending comes after a year in which firms struggled to rebuild their reputations and push for friendlire legislation, according to Reuters.
In total, cryptocurrency firms spent $18.96 million over the three quarters of 2023. However, during the same period in 2022, $16.1 million was spent. In total, firms spent nearly $22 million on lobbying in 2022, including the failed crypto exchange FTX.
Coinbase (COIN.O), the largest US cryptocurrency exchange, again topped the list with $2.16 million spent, followed by Foris DAX, which operates Crypto.com, Blockchain Association and Binance Holdings.
Experts point out that cryptocurrency companies are partly trying to improve their reputation after a string of scandals last year, including the collapse of FTX. Crypto firms are also grappling with growing regulatory scrutiny, especially from the U.S. Securities and Exchange Commission, which says the industry is violating its rules.
According to OpenSecrets, Binance and Binance.US spent more than $1 million lobbying politicians. In total, Binance Holdings invested $850,000 in 2023, and Binance.US spent $340,000, both up significantly from the previous year.
These lobbying efforts in 2022 focused on two specific bills: the Digital Consumer Protection Act and the Lummis-Gillibrand Responsible Financial Innovation Act, the report says.