Stablecoin push unleashes flood of crypto lobbying cash in US Congress

Lobbying dollars spent on behalf of Tether Operations Ltd jumped to $760,000 during that period

Reportedly, Competitor Circle Internet Financial LLC spent 0,000, compared with 0,000 in the first three quarters of 2022
Reportedly, Competitor Circle Internet Financial LLC spent $300,000, compared with $270,000 in the first three quarters of 2022

Lobbying over new guardrails for crypto stablecoins jumped for most of 2023, part of an overall surge in the industry’s spending to sway legislative outcomes on Capitol Hill.

The stakes around stablecoins are high because the tokens, which are supposed to be backed by safe and highly liquid assets like dollars or Treasuries, serve as the bridge between crypto and the traditional financial system. Federal regulation would lend legitimacy to the asset class that could lead to broader adoption. Oversight for stablecoins has been singled out as a priority by Biden administration officials, congressional Democrats — many of whom count themselves as crypto skeptics, and Republican lawmakers, who are generally seen as more friendly to the industry. 

The bipartisan interest has continued even after the implosion of Sam Bankman-Fried’s FTX empire pushed the two sides further apart on other issues pertaining to digital assets. It also coincided with a gush of lobbying money, including from Tether, the issuer of the largest stablecoin, during the first three quarters of 2023. Results for the full year aren’t available until 2024. Lobbying dollars spent on behalf of Tether Operations Ltd. jumped to $760,000 during that period —- the sixth most by any crypto firm, and about double the previous year, according to data provided by OpenSecrets based on federal disclosures. Competitor Circle Internet Financial LLC, which is represented by Invariant LLC, spent $300,000, compared with $270,000 in the first three quarters of 2022. 

A spokesperson for Tether said the company is focused on shaping future digital asset policy by educating and having ongoing discussions with policymakers and regulators. Circle declined to comment. The top crypto spender on all issues, digital-asset exchange Coinbase Global Inc., disclosed that a chunk of the more than $2 million it spent in the first nine months of the year went toward stablecoins. Traditional financial firms, including Bank of America and Visa also lobbied on the issue, as did the U.S. Chamber of Commerce.

“We need policymakers to provide affirmative clarity for the regulation of payment stablecoins to grow the digital assets market in the U.S.,” Bill Hulse, senior vice president at the U.S. Chamber of Commerce Center for Capital Markets Competitiveness, said in an emailed statement. Overall, 161 lobbying disclosure reports mentioned stablecoin legislation or oversight — a 79% increase from the 90 that mentioned the topic during the first three quarters of 2022, according to federal disclosures. 

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This article was first uploaded on December twenty-one, twenty twenty-three, at forty-five minutes past twelve in the night.
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