While cryptocurrency regulation efforts continue in the USA, lobbying activities continue to increase.
According to Reuters, the cryptocurrency industry is breaking records in lobbying expenditures in 2023 to repair the reputation of companies and develop more moderate crypto legislation.
According to research data shared with Reuters by the non-profit research company OpenSecrets, due to the collapse of FTX and other difficulties (Terra-LUNA collapse and other bankruptcies..), crypto companies will increase their lobbying activities in the USA by 18.96 in the first three quarters of 2023. Millions of dollars were spent.
Crypto companies spent $16.1 million on lobbying activities in the same period in 2022.
According to research data, Coinbase, the largest cryptocurrency exchange in the USA, was the leader by spending $2.16 million on lobbying activities, followed by Foris DAX, the owner of Crypto.Com, Blockchain Association and Binance Holdings.
Speaking to Reuters, Blockchain Association CEO Kristin Smith said in a statement: “Our goal is to directly engage with policymakers in the United States, build relationships and create a common-sense regulatory framework in the crypto industry.”
As you may remember, FTX suddenly went bankrupt in November 2022, causing prices to collapse.
FTX.US, the US arm of FTX, one of the exchanges that spent the most on lobbying activities in 2022 after the bankruptcy, announced that it was leaving US lobbying activities.
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At this point, OpenSecrets analysts told Reuters that the increase in lobbying spending in 2023 compared to 2022 indicates that crypto companies in the United States are increasing their efforts to repair the damage caused by FTX's sudden bankruptcy.