According to recent data, stablecoin issuers like as Tether, Circle, and others have dramatically upped their lobbying spending on Capitol Hill since the beginning of 2022.
With the growing pressure to establish a regulatory framework for dollar-pegged digital assets, stablecoins have taken the spotlight in Washington, D.C.
Tether, the issuer of the world’s dominant stablecoin, USDT, has employed the law offices of Michael Jason Lee for its lobbying activities, conducted through FTI Government Affairs, a consulting firm with bipartisan connections.
As reported by public interest outlet ProPublica, Tether has allocated approximately $600,000 for lobbying efforts since the beginning of 2022, with a quarterly expenditure of $120,000 focused on engaging the U.S. Senate and House of Representatives.
Tether’s lobbying endeavors have primarily aimed to support legislation associated with stablecoins. With a market share of 63% and a circulation of $83 billion, Tether holds a prominent position in the stablecoin market.
According to government transparency group Open Secrets, Tether continued its lobbying efforts in the first quarter of 2023, spending an additional $270,000.
Meanwhile, rival stablecoin issuer Circle has also allocated significant funds for lobbying purposes. Circle partnered with strategic consulting firm Invariant in late 2021 and has expended at least $560,000 since then, according to ProPublica.
Circle’s lobbying initiatives have focused on educating policymakers about its business model, informing members of Congress about stablecoin and cryptocurrency matters, and closely monitoring cryptocurrency proposals.
The company has worked with the Senate, House of Representatives, Treasury, the Office of the Comptroller of the Currency (OCC), the Commodity Futures Trading Commission (CFTC), and the Securities and Exchange Commission (SEC).
Circle dedicates a quarterly budget of $100,000 to its lobbying activities. The company creates USDC, the second-largest stablecoin in the world with a market share of 22.6% and a $29.5 billion circulation.
In a recent statement, Circle CEO Jeremy Allaire emphasized the importance of stablecoin legislation and the need for secure access to digital dollars.
Paxos, the former issuer of the Binance stablecoin BUSD, has also invested approximately $300,000 in lobbying since early 2022. Concerning matters about the creation of stablecoin law, Paxos works with the bicameral public policy firm Mindset.
It is worth noting that the amounts pledged by stablecoin issuers pale in comparison to the lobbying expenses incurred by major crypto companies. Coinbase, for instance, has spent approximately $5.5 million on lobbying efforts since 2015, while Binance.US allocated nearly $1 million for lobbying activities in 2022.
