The global digital assets industry is awaiting a crucial decision on the first U.S. spot bitcoin exchange-traded fund (ETF). However, the crypto industry is reportedly set to reach a new record for federal lobbying spending. This suggests that key players are determined to repair reputational damage and influence legislation favorably.
Crypto firms spend more
According to a report, data provided by OpenSecrets depicts that crypto companies spent $18.96 million in the first three quarters of 2023 on lobbying. This surpassed the $16.1 million spent during the same period back in 2022.
It added that this major surge has come in despite the high-profile collapse of the FTX exchange last year. The defunct crypto exchange had been a top ten spender in lobbying. It spent in 2023 is expected to exceed the nearly $22 million spent in 2022.
Coinbase, the largest U.S. crypto exchange reportedly led the way with $2.16 million in lobbying expenditures. However, other major contributors included Foris DAX (operator of Crypto.com), the Blockchain Association, and Binance Holdings.
The industry’s increased lobbying efforts align with its efforts to mend reputational issues which come after a series of scandals in 2022. This includes the collapse of FTX. However, Sam Bankman-Fried was found guilty of fraud in a Manhattan federal court last month.
BTC approval on the way
The report added that crypto linked firms are also intensifying their lobbying activities in reply to heightened regulatory scrutiny. The U.S. Securities and Exchange Commission (SEC) has accused companies like Coinbase and Binance of violating federal rules. The commission’s legal action against crypto platforms has fueled the industry’s push for favorable legislation.
The cryptocurrency industry is now looking ahead to secure approval for a spot Bitcoin ETF from the SEC. Optimism building around a potential approval pushed Bitcoin to reach a 20-month high on Monday. Bitcoin is trading at an average price of $41,745, at the press time.
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