Stablecoin Issuers Turning to Lobbying
Stablecoin issuers including Tether, Circle, and others have spent well over a million dollars lobbying lawmakers on Capitol Hill since the start of 2022, according to recent data.
The Regulatory Spotlight on Stablecoins
Stablecoins have become the center of attention in Washington recently as pressure mounts to roll out a regulatory framework for dollar-pegged digital assets.
Tether’s Lobbying Endeavors
Tether uses the law offices of Michael Jason Lee for its lobbying efforts, which are carried out through FTI Government Affairs, a consulting firm with bipartisan connections.
Circle’s Approach to Advocacy
Meanwhile, rival stablecoin issuer Circle has also been spending big on lobbying efforts. The firm began lobbying with strategic consulting firm Invariant in late 2021 and has spent at least $560,000 since then, according to ProPublica.
Other Key Players in Stablecoin Lobbying
Paxos, the former issuer of the Binance stablecoin BUSD, has spent around $300,000 on lobbying since early 2022. Paxos uses bipartisan public policy firm Mindset for its lobbying efforts focused on issues related to drafting stablecoin legislation.
Crypto Lobbying Beyond Stablecoin Issuers
The amount pledged by stablecoin issuers is, however, dwarfed by that spent by other major crypto companies. Coinbase has spent around $5.5 million since it began lobbying in 2015, and Binance.US spent almost $1 million in 2022.
Conclusion: Stablecoins in the Crosshairs of Regulation
The burgeoning stablecoin market, led by Tether and Circle, has clearly acknowledged the necessity of proactive lobbying in influencing the legislative process. As regulators increasingly focus on digital currencies, stablecoin issuers are keen on shaping a regulatory framework that supports growth and innovation.
The sizeable lobbying budgets of Tether, Circle, and Paxos demonstrate their commitment to not just survive, but also to shape the regulatory environment for stablecoins. However, when compared to the lobbying spends of other major crypto players like Coinbase and Binance.US, it’s evident that stablecoin issuers have a long way to go.
As the crypto industry matures, stakeholders will need to continually engage with lawmakers to ensure the potential of these innovative technologies is fully understood and correctly regulated. It remains to be seen how these lobbying efforts will shape the future of stablecoins, but one thing is clear: the dialogue between the cryptocurrency industry and regulators is intensifying, promising an exciting evolution in the digital currency landscape.