Gairika Mitra
Coinbase, the largest U.S. crypto exchange, has poured $2.86 million into lobbying efforts in 2023, ranking as the third biggest spender among crypto companies.
A recent report published by Socialcapitalmarkets revealed on Friday that Coinbase has the third largest market share in terms of trading volume. Coinbase logs the second-highest spot trading volume (~$1.47 billion) after Binance. It has used around 39 lobbyists in 2023, 32 of which have been revolvers.
Coinbase spent around $1.5 million in 2021 on lobbying efforts. This marks a sharp increase from the $230,000 it spent in 2020. It continued the upward trend in 2022, with the company shelling out $3.4 million — more than double its spending from the previous year. As it spent over $5 million by mid-2023, it cemented its place as one of the top lobbying spenders in the crypto sector.
Coinbase has been proactively engaging with lawmakers as regulatory bodies — including the U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) — increasingly scrutinize the cryptocurrency space.
The report also reveals that crypto lobbying spend surged by 1386% in the last seven years. Almost 60% of the total lobbying expenditure happened between 2022 and 2023.
Apart from Coinbase, firms like Apollo Global Management spent $7.56 million, while Managed Funds Assn shelled out $4.11 million. Binance.us expenditure rose by 656.25% from $160,000 in 2021 to $1,215,000 in 2023. Ripple also saw a 1780% increase from $50,000 in 2017 to $940,000 in 2023.
Coinbase has, so far, focused on advocating for policies that would classify certain digital assets as commodities, rather than securities, which would subject them to lighter regulatory oversight.
Another key issue for Coinbase is the taxation of digital assets. It has been pushing for clear tax guidelines and exemptions that could benefit crypto users and businesses alike, aiming to reduce the tax burden on transactions and foster a more favorable environment for crypto innovation. It has also worked to influence discussions around anti-money laundering (AML) and know-your-customer (KYC) regulations.
The report concludes that lobbying has had a positive influence on the crypto industry. It also highlights how companies like IBM and Meta have increasingly engaged in lobbying efforts as well.
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Gairika holds positions in BTC. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
