Cryptocurrency exchange Coinbase has significantly increased its lobbying spending since 2017. The company’s lobbying spending to shape cryptocurrency policy in the US peaked in 2022. During this period, Coinbase increased its lobbying budget by 3,475%.
Reasons for the Increase
One of the main reasons for Coinbase’s huge increase in lobbying spending is the increasing regulation of cryptocurrencies. The company aims to have a say in determining the policies that will shape the future of the crypto industry. To this end, it is collaborating with various lobbying groups in Washington to gain influence. A Prize Pool Worth 21 Million TL Awaits You from BinanceTR! Participating and winning has never been easier.. You can sign up to BinanceTR from this link. Get your first crypto!
Other Companies’ Expenditures
Apart from Coinbase, other major crypto firms are also increasing their lobbying spending. For example, another major crypto firm has also allocated a significant budget to lobbying in 2022. This shows that interest in lobbying is increasing in the industry as a whole. Crypto firms are intensifying their lobbying efforts to eliminate regulatory uncertainty and establish clearer rules for the industry.
Legal Regulations
In recent years, the legal regulations for cryptocurrencies have increased in the United States. These regulations create various challenges and opportunities for companies operating in the sector. This previously unregulated area is now intended to be governed by stricter rules. These changes are expected to contribute to a safer and more stable cryptocurrency market.
Coinbase is implementing a variety of strategies to strengthen its relationships with regulators, including lobbying and direct communication with regulators, with the company aiming to reduce regulatory uncertainty in the industry and shape the future of the cryptocurrency market.
Coinbase spokesperson: “We are working to better understand and regulate the cryptocurrency industry.”
Coinbase’s major investment in lobbying aims to support the growth and maturation of the cryptocurrency industry. The company believes that lobbying will make the industry more transparent and trustworthy, and therefore, it will continue its efforts in lobbying and collaborating with regulatory bodies.
The interest of cryptocurrency companies in lobbying activities is of great importance for the future of the sector. These activities contribute to the elimination of legal uncertainties in the sector and the establishment of clearer rules. This creates a safer environment for both cryptocurrency users and investors. The aim is to establish the cryptocurrency industry on a more solid foundation by cooperating with regulatory institutions.
Disclaimer: The information contained in this article does not contain investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should carry out their transactions in line with their own research.
