Crypto Firms Engaged In Lobbying Blitz This Year Reportedly Spending $ 5 Million In First 3 Quarters As Regulation Looms | Currency News | Financial and business news

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The cryptocurrency market has swelled this year to reach a valuation of $ 2.2 trillion.

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Crypto firms spent $ 5 million in the first nine months of 2021 to lobby U.S. lawmakers, The Economist reported. The report noted the spending of the crypto exchange Coinbase and the payment company Block. About $ 2.5 million of the funds were spent between July and September, a quadruple from the previous year.

Cryptocurrency firms increased spending in 2021 to pressure U.S. lawmakers as the industry grapples with potential legislation, with the bill hitting around $ 5 million over a few months, according to The Economist.

The spending took place in the first nine months of this year and the amount was calculated using public disclosures, the magazine reported in its Dec. 11 edition. About $ 2.5 million of the funds were spent between July and September, a quadruple from the same period in 2020.

The amount of money spent employs the equivalent of 86 full-time employees, an increase from just one in 2016, according to the report. He also said the crypto exchange Coinbase spent $ 625,000 on lobbyists in the third quarter alone, and payments firm Block has disbursed more than $ 1.7 million since April 2020.

Block recently changed its name from Square. Its CEO and bitcoin enthusiast, Jack Dorsey, recently left the management of Twitter to focus more on the payments company he co-founded.

There are potentially “reams of regulations” at play for the crypto industry, according to the report. Issues under consideration include taxing crypto investments and protecting consumers from fraud, reducing systemic risk, and ensuring fair competition.

A global spike in the prices of bitcoin, altcoins, NFTs and DeFi tokens this year has collectively pushed the cryptocurrency market past a valuation of $ 3 trillion for the first time. Market cap has since slipped to $ 2.2 trillion on Friday.

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