 | The data from OpenSecrets shows that Crypto Exchanges continue to spend considerable sums of money lobbying US government agencies to achieve a more crypto-friendly regulatory framework. Between Coinbase, Kraken (Payward Inc), and CryptoCom (Foris Dax Inc), spent over 1.25m USD. Coinbase was the largest spender, with 700k USD spent in the first quarter of 2024. The US is a key market for Coinbase, which is why it is likely more focused on advancing the regulatory framework in that jurisdiction than others. CB also has an ongoing case with the regulators. Coinbase also recently contributed 25m (matching contributions from Ripple and a16z) to a crypto PAC ahead of the upcoming presidential election in the US. https://coindesk.com/policy/2024/06/03/flood-of-cash-from-coinbase-gives-crypto-one-of-the-biggest-campaign-war-chests/… Source: https://opensecrets.org/federal-lobbying/clients/summary?id=D000072255… Cryptocom also matched its Q1 lobbying budget from last year, spending 260k at the beginning of the year (slightly down from 270k in 2023 but still double the amount spent in the same period in 2022). Most of this budget was likely spent lobbying the CFTC, as Cryptocom tries to toe the line by only launching tailored products for the jurisdiction, most recently the Strike options. https://crypto.com/product-news/updown-options… CDC planned to launch a full US exchange in the last bull market but ultimately decided against this due to regulatory uncertainty. Since then, it has opted for a piecemeal approach to entering the American market. Then in 2022, Cryptocom entered the game of US federal lobbying with force, spending over 1m USD on lobbying that year (in comparison, Kraken spent just over 400k in 2022 but has since ramped up its lobbying spend to match competitors). https://www.theblock.co/linked/143471/crypto-com-made-a-major-move-into-federal-lobbying-at-the-start-of-the-year CDC’s Steve Humenik was recently appointed to the U.S. CFTC Global Markets Advisory Committee Digital Assets Market Subcommittee. Source: https://opensecrets.org/federal-lobbying/clients/summary?id=D000104964… Kraken increased its spending on lobbying in Q1 2024 to 334k USD, increasing its budget by 40k from the previous year. Kraken has an ongoing case against the regulators after it was sued by the SEC (again) late in 2023. https://coindesk.com/policy/2024/02/23/crypto-exchange-kraken-files-to-dismiss-sec-lawsuit-against-it/… The spokesperson for the company has been quoted before explaining their stance on lobbying: “As one of the oldest and largest digital asset businesses, we recognise the importance of active engagement in public policy debates that impact our customers, employees, stakeholders, and the industry.” https://dlnews.com/articles/regulation/how-coinbase-and-tether-boosted-crypto-lobbying-in-2023/… Kraken CEO Jesse Powel recently donated 1m in cryptocurrency to the presidential campaign of Donald Trump. https://www.coindesk.com/policy/2024/06/28/kraken-co-founder-jesse-powell-donates-1m-mostly-ether-to-donald-trump/ Source: https://opensecrets.org/federal-lobbying/clients/summary?cycle=2024&id=D000094023… Regulatory lobbying has advantages and disadvantages. One of the main benefits is that agencies gain access to knowledge from industry professionals, leading to better-quality rules (more informed and effective regulations). However, regulatory lobbying also has significant drawbacks. One major concern is the inequality of influence and the democratic deficit of lobbying. [link] [comments] |
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