According to recent data, stablecoin issuers including Tether, Circle and others have spent more than $1 million lobbying lawmakers on Capitol Hill since the start of 2022.
Stablecoins have recently become the focus of attention in Washington as pressure mounts to roll out a regulatory framework for digital assets pegged to the dollar.
Tether used Michael Jason Lee's law firm for its lobbying efforts, which were conducted through FTI Government Affairs, a consulting firm with bipartisan ties. According to public interest media ProPublica, Tether has spent about $600,000 since the be ginning of 2022, including $120,000 per quarter lobbying the US Senate and House of Representatives.
Lobbying efforts have been aimed at supporting stablecoin-related legislation. Tether launches USDT, the world's dominant stablecoin, with a market share of 63% and a circulation of US$83 billion.
Government transparency group Open Secrets added that Tether spent another $270,000 on lobbying in the first quarter of 2023. Meanwhile, rival stablecoin issuer Circle has also been lobbying heavily. The company began lobbying with strategic consulting firm Invar iant in late 2021 and has since spent at least $560,000, according to ProPublica. Circle's lobbying efforts revolve around educating policymakers about its business model, educating members of Congress on stablecoin and cryptocurrency issues, and overseeing cryptocurrency proposals.
The company has lobbied the Senate, House of Representatives, Treasury Department, Office of the Comptroller of the Currency, Commodity Futures Trading Commission and Securities and Exchange Commission. Circle's quarterly lobbying budget is currently $100,000. The company issues USDC, the wor ld's second largest stablecoin , with a market share of 22.6% and a circulation of $29.5 billion. On May 18, Circle CEO Jeremy Allaire reiterated the need for stablecoin legislation and secure access to digital dollars.
Paxos, the former issuer of Binance's stablecoin BUSD, has spent around $300,000 lobbying since early 2022. Paxos used the bipartisan public policy firm Mindset for its lobbying efforts, focusing on issues related to drafting stablecoin legislation. Earlier this year, lobbying fees for the crypto industry in the US will soar 120% in 2022.
However, The amount Pledged by Stablecoin Isuers Pales in Comparison to the AMount Sits by Other Cryptocurrency Companies. CoinBase has about $ 5.5 mi lling since lobbying began in 2015, while binance.us has spant nearly $ 1 mission in 2022.
