New OpenSecrets profile examines the crypto industry and its influence on OpenSecrets regulation

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WASHINGTON, July 11, 2023 A new OpenSecrets profile analyzes recent developments in the crypto industry and illustrates its influence on proposed regulation.

The task of regulating crypto has so far been left to a patchwork of rules and guidelines from the Securities and Exchange Commission, the Commodity Futures Trading Commission, and the Treasury Department. A bipartisan caucus in Congress opposed even this minimal oversight.

Crypto has been around for over a decade, but how it fits into the wider financial system is still up for debate. Whether it’s a commodity, a security, or just an elaborate biggest fool scheme that converts math into greenhouse gases, the technical underpinnings of blockchain-based financial products often obscure the hands-on industry discussions.

Key points to remember:

2022 has been a banner year for crypto industry lobbying. Total federal lobbying spending more than doubled from 2021. The number of crypto industry lobbyists exploded to 279, the majority of whom were revolving door hires who previously held federal government jobs . The crypto industry’s top lobbying spenders included Coinbase and Binance, two major crypto exchanges sued by the SEC in June 2023. Binance allegedly mismanaged customer funds, while Coinbase was accused of violating the law by selling unregistered securities. Along with massive increases in lobbying spending, political contributions from crypto firms reached all-time highs during the 2022 election cycle. FTX was by far the biggest spender, though it has since collapsed after allegedly defrauding investors. The crypto industry’s top 10 beneficiaries in Congress include House Financial Services Committee Chairman Patrick McHenry (RN.C.) and Sen. Kirsten Gillibrand (DN.Y.), who both sponsored legislation to establish regulatory frameworks for digital currencies.

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