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 companies have struggled to restore their reputations and push for favorable legislation, according to Reuters.
Cryptocurrency companies spent a total of $18.96 million during the third quarter of 2023. However, in the same period in 2022, it spent $16.1 million. Companies, including failed cryptocurrency exchange FTX, spent nearly $22 million on lobbying in 2022.
Coinbase (COIN.O), the largest cryptocurrency exchange in the United States, ranked first again by spending $2.16 million, and operates Crypto.com, Blockchain Association, and Binance Holdings. Foris DAX followed suit.
Experts point out that cryptocurrency companies are partly trying to improve their reputations after a series of scandals, including the downfall of FTX last year. Cryptocurrency companies are grappling with increasing regulatory scrutiny, especially from the U.S. Securities and Exchange Commission (SEC), which says the industry is violating regulations.
According to OpenSecrets, Binance and Binance.US have spent over $1 million lobbying politicians. In total, Binance Holdings invested $850,000 in 2023 and Binance.US spent $340,000, both significant increases from the previous year.
According to the report, this lobbying effort in 2022 focused on two specific bills: the Digital Consumer Protection Act and the Loomis-Gillibrand Responsible Finance Innovation Act.