Crypto Industry Pours $80M into Lobbying Efforts for Pro-Crypto Leadership Ahead of 2024 Elections

Influence of the Crypto Lobbying Efforts

Coinbase, Circle, and a16z have channelled substantial funding to Fairshake, a crypto super political action committee, aiming to counter the declining perception of digital assets in Congress. Notable figures in the crypto space, including investors Ron Conway and Fred Wilson and Gemini co-founders Cameron and Tyler Winklevoss, have joined this initiative. Fairshake seeks to support the election of "pro-crypto leadership" and welcomes unlimited donations towards this objective.

The increased lobbying activities stem from recent challenges faced by the crypto industry, including allegations of Binance's association with terrorist funding and the conviction of former FTX CEO Sam Bankman-Fried, creating a politically sensitive landscape for cryptocurrencies.

Impact on Regulatory Outlook and Bitcoin ETF Approval

The heightened lobbying efforts coincide with the anticipation surrounding the potential approval of a spot Bitcoin ETF by the US Securities and Exchange Commission (SEC) starting January 10, 2024. If approved, these ETFs could unlock avenues for institutional Bitcoin investments.

Furthermore, the intensified lobbying could contribute to fostering a clearer regulatory framework beneficial for both retail trading and institutional investments. Clarity regarding licensing for crypto exchange activities, asset categorization, and disclosures may enhance retail traders' confidence while stimulating demand for on-chain settlements using digital assets.

Additionally, the entry of major traditional financial institutions like JPMorgan and Morgan Stanley into the crypto space might pressurize Congress to advance smaller-scale crypto-related bills, potentially leading to a faster and more inclusive traditional financial system.