Crypto industry spends millions on lobbying as it seeks support from lawmakers
- Crypto industry lobbyists are working to gain support from Congress
- Crypto firms have spent nearly $6.6 million on lobbying in Q2 2023
- The industry wants Congress to clarify or change laws to shield itself from regulators
- Coinbase has emerged as a leading force in crypto lobbying
- Crypto executives are targeting lawmakers in swing states to make crypto a campaign issue
- The industry hopes Congress will carve out crypto from securities rules
- Crypto firms are lobbying against bills that impose anti-money-laundering requirements
- There is a realization among some in Congress that crypto is here to stay
Factuality Level: 6
Justification: The article provides information about the efforts of the crypto industry to lobby Congress for favorable legislation and the potential impact of such legislation on the industry. It includes specific examples of campaign fundraisers and lobbying activities. However, the article does not provide a balanced perspective and focuses primarily on the industry’s viewpoint without adequately addressing potential concerns or counterarguments. Additionally, the article includes some speculative statements and does not provide in-depth analysis of the legislative process or the likelihood of specific bills being passed.
Noise Level: 4
Justification: The article provides information on the lobbying efforts of the crypto industry and its push for regulatory clarity. It mentions specific events and fundraising activities involving lawmakers and crypto executives. However, the article lacks in-depth analysis and does not provide evidence or data to support its claims. It also does not offer actionable insights or solutions.
Financial Relevance: Yes
Financial Markets Impacted: The article discusses the efforts of the crypto industry’s lobbyists to seek clarification and changes in legislation from Congress regarding the regulation of cryptocurrencies. This could potentially impact the financial markets, particularly in terms of how core activities like trading and brokerage services will be regulated, as well as the development of new revenue streams in products like ETFs.
Presence of Extreme Event: No
Nature of Extreme Event: No
Impact Rating of the Extreme Event: No
Justification: The article primarily focuses on the lobbying efforts of the crypto industry and the potential impact of regulatory changes on financial markets. There is no mention of any extreme events.
Public Companies: Coinbase Global (COIN), BlackRock (BLK), ARK Invest (undefined), Fidelity Investments (undefined)
Private Companies: undefined, undefined
Key People: Pat Toomey (Lawmaker), Kirsten Gillibrand (Senator), Cynthia Lummis (Lawmaker), Patrick McHenry (Lawmaker), Jesse Hamilton (Coindesk’s Representative), Sam Bankman-Fried (Founder of FTX), Brian Armstrong (CEO of Coinbase Global), Hakeem Jeffries (House Minority Leader), Gary Gensler (Chair of the Securities and Exchange Commission), Mark Palmer (Analyst at Berenberg Capital Markets), Chris Lehane (Chief Strategy Officer at Haun Ventures), Kristin Smith (CEO of the Blockchain Association)
The crypto industry is actively lobbying Congress to gain support and regulatory clarity. In the second quarter of 2023, crypto firms spent nearly $6.6 million on lobbying, the highest amount in any quarter. The industry wants Congress to clarify or change laws to protect itself from regulators who view crypto as lawless and dangerous. Coinbase has emerged as a leading force in crypto lobbying, with CEO Brian Armstrong leading a grassroots movement to push lawmakers to prioritize crypto. Crypto executives are targeting lawmakers in swing states to make crypto a campaign issue. The industry also hopes Congress will carve out crypto from securities rules and establish rules for stablecoins. However, the industry faces challenges, such as the SEC’s harsh stance on crypto and the need to lobby against bills that impose costly anti-money-laundering requirements. Despite setbacks, there is a realization among some in Congress that crypto is here to stay. While the industry awaits regulatory clarity, it continues to push for a Bitcoin ETF and hopes to make progress on a crypto bill next year.
