Crypto Lobbying Skyrockets Amidst Call For Stablecoin Regulations In 2023
In a recent report, the crypto ecosystem experienced a massive increase in lobbying actions seeking to reshape stablecoin regulations as well as influence legislative outcomes in 2023. More so, lobbying on stablecoin regulations reportedly skyrocketed significantly this year, with 161 reports, which is about a 79% increase from last year’s data.
Furthermore, the House Agriculture and House Financial Services Committees recently proposed bills pushing for the creation of comprehensive regulatory standards to regulate the cryptocurrency and stablecoin ecosystem. Stablecoins, which are a form of digital currency linking the traditional financial economy with the emerging digital economy, have spread their tentacles of utility cases about the economic central stages.
Lawmakers Push For Stablecoin Legislation
Due to their epic role in uniting both the crypto market and traditional finance, United States policymakers are reportedly increasing their efforts towards pushing for the creation of comprehensive regulatory standards that would regulate the operation and conduct of cryptocurrency.
According to the report, both Republicans and Democrats, as well as the Biden administration, took deep interest in establishing stablecoin regulations this year. The commitment from both parties continues to wax stronger even though they have different stances on other digital assets – related to calamities in the crypto industry caused by FTX exchange and Sam Bankman-Fried’s failure.
Furthermore, reports revealed that multiple crypto firms, coupled with prominent traditional financial institutions such as Visa and Bank of America, have engaged in lobbying actions to demand legislative results on Capitol Hill.
Crypto And Traditional Institutes Lobby For Legislation
Tether, the issuer of USDT stablecoin, which is one of the lobbyists, reportedly spent over $760,000 to lobby for stablecoin legislation in the first three quarters of this year, ranking it the sixth crypto firm with the highest spending for 2023. Circle Financial, the issuer of USDC, another prominent stablecoin, reportedly spent about $300,000 in the same period after previously spending up to $270,000 for the same purpose in 2022.
On the other hand, Coinbase exchange, the issuer of COIN token, is reportedly the biggest spender overall on all lobbying cases after expending about $2 million of its revenue on pushing for the implementation of stablecoin regulations. Reinforcing the allegiance, the US Chamber of Commerce, Visa, and the Bank of America reportedly contributed towards advocating for the same purpose.
In addition, the House Financial Services Committee reportedly dominated the stablecoin legislation rally, actively pushing a bill for the purpose in July. The bill was also supported by the House Agriculture Committee, which also seeks clear legislation for cryptocurrency and stablecoin. However, the bill was delayed to 2024 before it would be previewed for approval by the Senate, according to United States Representative French Hill.
US Needs Comprehensive Crypto Regulations
Furthermore, the report revealed that the United States Chamber of Commerce Center for Capital Markets Competitiveness’ senior vice president, Bill Hulse, recently pointed out the significance of creating bills to regulate the US markets. He said lawmakers in America should draft comprehensive laws for stablecoin payment settlement to facilitate the growth and expansion of the digital assets markets in the United States.
Reports showed that despite the US standing as one of the major forces in the financial market, the country is yet to conclude on legislation that can facilitate the adoption of cryptocurrency in the country. Europe, on the other hand, has driven its administration towards creating a clear regulatory standard for cryptocurrency-related products or services, which it called MiCA.
Meanwhile, lawmakers in the region massively paid attention to the stablecoins industry this year as it records intense lobbying efforts towards the crypto industry. According to the report, digital currency firms expended over $19.3 million to facilitate cryptocurrency lobbying activities within the first three quarters of this year. The number surpassed the previous year’s total, which was estimated at $15.6 million in the first nine months.
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