Stablecoin issuers such as Tether, Circle, and others have invested significant amounts of money in lobbying efforts on Capitol Hill since the start of 2022, according to recent data. The focus on stablecoins in Washington, D.C. has intensified as pressure mounts to establish a regulatory framework for these digital assets pegged to the U.S. dollar.
Tether has utilized the law offices of Michael Jason Lee and engaged the services of FTI Government Affairs, a consulting firm with bipartisan connections, for its lobbying activities. Since the beginning of 2022, Tether has spent approximately $600,000 on lobbying the U.S. Senate and House of Representatives, with quarterly spending of $120,000. These lobbying efforts aim to support legislation pertaining to stablecoins. Tether is the issuer of the leading stablecoin globally, commanding a 63% market share and circulating $83 billion.
Stablecoins regulations fight
In the first quarter of 2023 alone, Tether allocated an additional $270,000 to its lobbying endeavors, as reported by government transparency group Open Secrets.
Similarly, Circle, a rival stablecoin issuer, has also dedicated substantial resources to lobbying efforts. The company initiated lobbying activities with strategic consulting firm Invariant in late 2021 and has spent a minimum of $560,000 since then, according to ProPublica. Circle’s lobbying initiatives encompass educating policymakers on its business model, informing members of Congress about stablecoin and cryptocurrency matters, and monitoring cryptocurrency proposals.
Circle has engaged with various entities, including the Senate, House of Representatives, Treasury, Office of the Comptroller of the Currency (OCC), Commodity Futures Trading Commission (CFTC), and Securities and Exchange Commission (SEC). Currently, Circle’s quarterly lobbying budget amounts to $100,000. The firm issues the second-largest stablecoin globally, with a market share of 22.6% and a circulation of $29.5 billion. On May 18, Circle CEO Jeremy Allaire reiterated the necessity for stablecoin legislation and secure access to digital dollars.
Paxos, the former issuer of the Binance stablecoin BUSD, has allocated approximately $300,000 to lobbying efforts since early 2022. Paxos collaborates with bipartisan public policy firm Mindset for its lobbying endeavors, focusing on issues associated with drafting stablecoin legislation.
The cryptocurrency industry’s lobbying expenses in the United States surged by 120% in 2022. However, the amount spent by issuers pales in comparison to the expenditures of other major crypto companies. Coinbase, for instance, has invested around $5.5 million in lobbying since 2015, while Binance.US spent nearly $1 million in 2022.
