The crypto industry’s effort for a more supportive regulatory environment in the US has paid off throughout the year, as evidenced by a recent report from The Hill highlighting the rapid expansion of crypto lobbying efforts.
Per the report, these called “newcomers” represent a diverse array of interests within the industry, from betting platforms like Polymarket to gaming companies creating non-fungible tokens (NFTs) related to high-profile events.
Together, these entities have invested nearly $2.8 million between April and June to lobby for legislation promoting digital assets, targeting key regulatory bodies such as the Treasury Department and the Securities and Exchange Commission (SEC).
This legislative effort has already yielded results. The recently signed GENIUS Act, which received bipartisan support, is regarded as a significant endorsement for the industry, with the aim of providing a new regulatory framework for stablecoins.
The House has also advanced several other key bills, including the CLARITY Act and the Anti-CBDC bill, during a dedicated “crypto week,” featuring creative lobbying tactics.
A total of 73 companies and associations reportedly engaged in federal lobbying activities related to cryptocurrency, spending about $11.4 million.
Among the new entrants, KuCoin, a Seychelles-based cryptocurrency exchange, led lobbying expenditures with $1 million, despite being barred from operating in the US market for at least two years due to regulatory violations.
Miller Whitehouse-Levine, CEO of the Solana Policy Institute, emphasized that the industry has struggled not with innovation, but with understanding how emerging technologies fit within existing legal frameworks.
While some companies like Bitdeer Technologies, which focuses on Bitcoin (BTC) mining, continue to address currency-related issues, many firms are leveraging blockchain technology for a broader range of financial products.
Polymarket, operating under the name Blockratize, allows users to place bets on various events using cryptocurrencies, while Gala Games sponsored the White House’s Easter Egg Roll, promoting their online gaming platform that rewards players with crypto tokens.
Looking forward, the crypto industry is keen to see the Senate advance the CLARITY Act, which aims to provide a regulatory blueprint for federal oversight of crypto firms.
Additionally, a bill banning the Federal Reserve (Fed) from issuing its own digital asset or central bank digital currency (CBDC) has garnered interest from within the sector.
However, Whitehouse-Levine expressed concerns about the potential for regulatory shifts, fearing a return to the cautious stance that characterized previous administrations.
“The pendulum has swung from one extreme to another,” he noted, highlighting the need for consistent and stable regulatory conditions to foster growth and innovation in the industry.
Featured image from DALL-E, chart from TradingView.com
