US crypto industry lobby spending is on track for a new record in 2023. According to information provided to Reuters by OpenSecrets, a nonprofit research group, the cryptocurrency industry was on track to establish a new record for the amount of money spent on lobbying by the federal government. OpenSecrets provided this information. During the previous year, businesses exerted a great deal of effort to rehabilitate their reputations and advocate for legislation beneficial to their interests.

During the first three quarters of 2023, bitcoin businesses incurred lobbying costs of $18.96 million. This represents a considerable increase over the $16.1 million spent during the same period in 2022. Despite the shocking failure of the cryptocurrency exchange FTX, one of the top 10 spenders in the previous year, this was the case regarding the cryptocurrency market. Over the preceding year, companies like FTX spent nearly $22 million on lobbying.

Coinbase (COIN.O), the largest cryptocurrency exchange in the United States, once again topped the pack with a spending of $2.16 million. Foris DAX, responsible for the operation of Crypto.com, the Blockchain Association, and Binance Holdings, followed closely after.

Kristin Smith, the Chief Executive Officer of the Blockchain Association, commented in a statement: “Our goal is to engage directly with policymakers, build relationships, and bridge the education gap to build a commonsense regulatory framework.”

For several reasons, including the collapse of FTX, whose former CEO Sam Bankman-Fried had been a known figure in Washington, cryptocurrency firms have been growing their operations in Washington. This is, in part, an effort to repair their reputations after a series of scandals that occurred in the previous year. A jury in a federal court in Manhattan reached a guilty verdict on the fraud charge from the previous month.

Additionally, cryptocurrency companies have been battling increased regulatory attention, particularly from the United States Securities and Exchange Commission, which asserts that the sector has been going outside its laws. The Securities and Exchange Commission (SEC) filed a lawsuit against Coinbase and Binance in June, alleging that they failed to register tokens, which both companies have denied. This led to an increase in lobbying efforts.

With the approval of a spot bitcoin exchange-traded fund (ETF), which would make the world’s largest cryptocurrency accessible to millions of additional investors, the sector has also been exerting pressure on the Securities and Exchange Commission (SEC). The belief that the agency would approve the product’s sale after a significant court had rejected it in the summer helped Bitcoin reach a 20-month high on Monday.

A congressional committee in the House of Representatives passed two significant bills in July, which lobbyists say would help clarify which existing financial rules apply to crypto companies. Crypto companies have also been trying to advance friendly legislation in the House of Representatives and have scored a victory.

Cryptocurrency lobbyists are not slowing down, although those measures have not made any more progress. According to a representative for Coinbase, the company is maintaining its momentum by holding further talks with lawmakers in the coming weeks. Coinbase initiated a grassroots lobbying effort in September. In response to requests for comment, neither Binance nor Crypto.com responded.