In order to promote stablecoin legislation and regulations, Tether and Circle have been leading lobbying efforts among stablecoin issuers.
Since the beginning of 2022, stablecoin issuers like Tether and Circle have committed a substantial amount of money to lobbying activities on Capitol Hill, reaching a million dollars. This occurs at a time when lawmakers and authorities in Washington are intensifying their efforts to create a regulatory framework for stablecoins, especially ones tied to the US dollar.
One of the biggest stablecoin issuers, Tether, has used the legal team of Michael Jason Lee for its lobbying efforts. These initiatives are carried out by the consulting company FTI Government Affairs, which is renowned for its ties to both parties. Tether has spent an estimated $600,000 on lobbying over the last 15 months, with a quarterly budget of $120,000 set aside for interactions with the US Senate and House of Representatives.
Stablecoin issuers’ increased lobbying activities demonstrate how important it is to them to influence the regulatory environment and policymaking in their favor. Stablecoin activities are increasingly dependent on a supportive regulatory environment as they continue to gain popularity in the financial sector.
The close examination and attention paid to stablecoins in Washington highlight the importance of regulatory clarity and oversight in this quickly developing industry. In order to effectively regulate the usage and issuance of stablecoins, lawmakers must address concerns about consumer protection, systemic risks, and potential effects on monetary policy.
Stablecoin Issuers’ Lobbying Expenditures
In the first quarter of 2023, Tether, one of the top stablecoin issuers, spent an additional $270,000 on lobbying, according to information from the government transparency group Open Secrets. This substantial investment demonstrates Tether’s continued efforts to interact with lawmakers and influence the stablecoin regulatory environment.
Competitor stablecoin issuer Circle has also invested a sizable sum of money in lobbying efforts. According to ProPublica’s findings, Circle has been working with strategic consulting firm Invariant since late 2021 and has spent at least $560,000 on lobbying activities.
Circle’s Lobbying Focus
Circle has focused its lobbying efforts primarily on three important areas. The company’s first objective is to inform regulators about both its distinct business model and the advantages of stablecoins in the larger cryptocurrency ecosystem.
In order to promote informed conversations and decision-making, Circle also aims to better inform Congressmen about stablecoin-related concerns. Finally, Circle is keeping a close eye on legislation and cryptocurrency proposal developments to make sure its interests are properly represented.
On May, 18, Circle CEO Jeremy Allaire reiterated the need for stablecoin legislation and safe access to digital dollars.
Crypto industry lobbying expenses surged 120% in the United States in 2022, as reported by Cointelegraph earlier this year.