Stablecoin issuers have ramped up their efforts to influence US lawmakers, as the sector faces renewed scrutiny and potential legislation. Recent records reveal that major industry players, such as Tether and Circle, have invested significant sums in lobbying activities, totaling over a million dollars between them. Tether, known for issuing the largest stablecoin, USDT, has allocated $120,000 per quarter to FTI Government Affairs for lobbying purposes specifically focused on stablecoin-related legislation. The company’s estimated total expenditure since the beginning of 2022 is approximately $600,000. Tether emphasizes its commitment to responsible participation in the industry and the importance of contributing to the development of a transparent regulatory framework that ensures consumer protection and market integrity.
On the other hand, Circle, the issuer of USDC, has engaged DC-based Invariant as its strategic consulting firm, investing around $100,000 per quarter. Circle aims to educate policymakers on Capitol Hill about stablecoin and crypto matters while monitoring relevant proposals. Since its collaboration with Invariant in late 2021, Circle’s lobbying spending has surpassed $560,000.
The heightened financial support from stablecoin issuers demonstrates their strong commitment to influencing regulatory discourse and promoting a balanced approach that encourages innovation while prioritizing consumer protection and market stability. With crypto legislation occupying a central position on the agenda, the endeavors of stablecoin issuers to persuade policymakers in Washington D.C. mirror the increasing importance and potential implications of stablecoins within the wider financial realm.