According to current figures, stablecoin issuers like Tether, Circle, and others have shelled out probably more than one million dollars lobbying politicians on Capitol Hill since the beginning of 2022.
Stablecoin Regulations are Long Overdue
Lobbyists, in particular, are professional advocates who seek to influence legislative choices on behalf of organizations and people. These types of campaigning frequently result in the introduction of new laws or the modification of current rules.
Tether Paid $600K Since 2022
Stablecoin USDT issuer Tether has paid out approximately 600,000 dollars from the start of 2022, which includes a quarterly consumption of $120,000 for lobbying the United States Senate and House of Representatives, according to public interest site ProPublica.
Tether employs the legal firm of Michael Jason Lee for their lobbying operations, which are managed by FTI Government Affairs, a bipartisan consulting business.
It is important to note here that Tether creates USDT, the world’s most popular stablecoin, with a market share of 63% and a circulation of $83 billion.
Circle Dished Out $560K in the Same Time
Circle has also spent a lot of money on lobbying. According to ProPublica, the business started negotiating with advisory firm Invariant around the end of 2021 and has allocated at least $560,000 since then.
The firm has lobbied the Senate, House of Representatives, Treasury, Comptroller of the Currency, Commodity Futures Trading Commission, and Securities and Exchange Commission. With a market share of 22.6% and a circulation of $29.5 billion, the company creates USDC, which is the second-largest stablecoin. Circle CEO Jeremy Allaire underlined the need of stablecoin regulation and secure access to digital currency on May 18.
Paxos Also Involved in Lobbying Activities
In addition, Paxos, the previous owner of the Binance stablecoin BUSD, has invested almost $300,000 on lobbying since early 2022. Paxos employs the bipartisan public policy company Mindset for its lobbying activities linked to the development of stablecoin legislation.
According to a survey issued by Public Citizen in March of last year, the number of lobbyists for crypto-related problems has increased from 115 in 2018 to 320 in 2021, while the number of representatives from the crypto business has increased from 47 to 157 in the same time period.