Crypto industry invests $70M to lobby Washington ahead of ETF

Crypto investors are eagerly awaiting the approval of the spot Bitcoin Exchange Traded Fund (ETF). However, a recent upsurge in crypto lobbying is raising hopes for the asset's continued existence.

Crypto exchange Coinbase, stablecoin issuer Circle and Silicon Valley venture capital A16z are committing nearly $80 million to influence US crypto policy ahead of the 2024 election. The trio donated the money to the crypto super political action committee Fairshack to combat the harsh views on digital assets on Capitol Hill.

Crypto needs new political allies

Joining the crypto companies are crypto investors Ron Conway and Fred Wilson and Gemini founders Cameron and Tyler Winklevoss. Fairshack accepts unlimited donations to support the “pro-crypto leadership” election.

The popular cash flow comes after Binance was allegedly involved in terrorist financing and former FTX CEO Sam Bankmann-Fried put the crypto on a political limbo.

In an interview earlier this year, Senator Elizabeth Warren said:

“Digital assets are posing a national security risk.”

One of crypto's most prominent allies, Senator Patrick McHenry, has confirmed his intention not to run for re-election in 2024. McHenry was instrumental in advancing the stablecoin legislation, which was blocked by Democrats on the House Financial Services Committee. Therefore, new financial support is needed to gain new political support.

“I believe the increased lobbying efforts to influence this election and ensure that pro-Crito candidates from both aisles are elected rather than reacting to the recent enforcement actions and court cases,” Orlando Cosme said. Lawyer at OC Advisory.

Read more: How to prepare for a Bitcoin ETF: A step-by-step approach

How Crypto Lobby Efforts Help ETFs

In parallel with the market excitement surrounding Bitcoin ETF approvals, a new political nexus is developing. The U.S. Securities and Exchange Commission is expected to issue a decision on multiple applications by January 10, 2024. If approved, they could open the floodgates for institutional investments in Bitcoin.

On the other hand, increased lobbying may improve the legal position of retailers. Transparency around licensing of services such as order matching, brokerage and clearing will eliminate potential conflicts of interest and foster a stronger trading environment, as European exchanges expect next year. Rules clarifying which assets are securities can result in unclear statements that retailers may feel uncomfortable with.

Read more: 13 Best Crypto Exchanges for Beginners

The rise of tokens will drive demand for on-chain settlements using digital assets. The entry of big players like JPMorgan, Morgan Stanley, and others could push Congress to advance smaller crypto-related bills that would speed up the traditional financial system.

Do you have something to say about whether the crypto lobby's new efforts will benefit retail investors, what a Bitcoin ETF could do for institutional investors, or something else? Please write to us or join the conversation on our Telegram channel. You can also find us on TikTok, Facebook or X (Twitter).