{"id":4853,"date":"2023-05-19T09:01:17","date_gmt":"2023-05-19T13:01:17","guid":{"rendered":"https:\/\/sikaoer.com\/stablecoin-issuers-pour-money-into-dc-as-crypto-legislation-hits-agendas\/"},"modified":"2023-05-19T09:01:17","modified_gmt":"2023-05-19T13:01:17","slug":"stablecoin-issuers-pour-money-into-dc-as-crypto-legislation-hits-agendas","status":"publish","type":"post","link":"https:\/\/sikaoer.com\/stablecoin-issuers-pour-money-into-dc-as-crypto-legislation-hits-agendas\/","title":{"rendered":"Stablecoin Issuers Pour Money Into DC as Crypto Legislation Hits Agendas"},"content":{"rendered":"


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<\/p>\n

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Stablecoin issuers have poured hundreds of thousands of dollars into lobbying US lawmakers since the start of last year, records show, at a time when legislation of the sector looks to be back on the agenda.<\/p>\n

The industry\u2019s biggest issuers Tether<\/span> and Circle have spent more than a million dollars between them, according to filings collated by ProPublica.<\/p>\n

Tether, which issues the world\u2019s largest stablecoin, USDT, pays $120,000 a quarter to FTI Government Affairs, specifically to lobby on legislation related to stablecoins. Its total outlay since the start of 2022 is estimated to be $600,000.<\/p>\n

“As a responsible participant in the industry, Tether believes it is crucial to contribute to the development of a transparent and balanced regulatory framework that fosters innovation while ensuring consumer protection and market integrity,” a Tether spokesperson told Decrypt.<\/p>\n

Meanwhile, rival Circle, which issues USDC<\/span>, has been allotting about $100,000 a quarter to pay DC-based Invariant to educate Capitol Hill policymakers on stablecoin and crypto issues, as well as monitoring relevant proposals.<\/p>\n

Its total spending has reached at least $560,000 since it hired the strategic consulting firm in late 2021.<\/p>\n

Decrypt has contacted Circle for comment.<\/p>\n

<\/p>\n

Stablecoins on the agenda<\/h2>\n

It comes as two competing stablecoin draft bills are considered by politicians, with one backed by Republicans and the other by Democrats. Both would allow banks and non-banks to issue stablecoins, but the draft brought by Patrick McHenry (North Carolina – R) would give more power to individual states.<\/p>\n

A hearing on Thursday saw the two drafts discussed, with speakers agreeing on the need for a regulatory framework.<\/p>\n

\u201cWhile we noticed two different legislative proposals today, we are not starting from scratch,\u201d said Congressman French Hill (Arkansas – R), chairman of the Subcommittee on Digital Assets, Financial Technology, and Inclusion. \u201cWe have the power to cement the U.S. as the leading place for safe payments innovation.\u201d<\/p>\n

Other businesses keeping an eye on stablecoin issues include payments provider Flexa Network, which recently appointed blockchain specialist lobbying firm Key Bridge Advisors to represent it on stablecoin bills.<\/p>\n

Binance, which issued its own stablecoin BUSD, has its own lobbying network on the Hill.<\/p>\n

The exchange\u2019s stablecoin partner Paxos announced it would stop minting the dollar-pegged token in February, however. Paxos said the move was directed by the New York Department of Financial Services (NYDFS).<\/p>\n

In the first quarter of this year, it paid $150,000 apiece to two law firms for crypto-related lobbying, though relevant disclosures do not specifically single out stablecoin legislation.<\/p>\n

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Stay on top of crypto news, get daily updates in your inbox.<\/h3>\n<\/div>\n<\/div>\n<\/div>\n


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Stablecoin issuers have poured hundreds of thousands of dollars into lobbying US lawmakers since the start of last year, records show, at a time when legislation of the sector looks to be back on the agenda. 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