Crypto Industry Boosts Lobbying 21% to Secure Stablecoin Legislation

Companies focused on cryptocurrencies and digital asset advocates significantly increased their lobbying efforts this year to ensure the passage of the stablecoin legislation in the U.S. Congress. This legislation, known as the GENIUS Act, establishes legal frameworks for stablecoins pegged to the U.S. dollar, aiming to expand the use of digital assets in global finance and secure the dollar's status as the world's primary currency. The bill's advocates argue that it will enhance the application of digital assets in everyday financial transactions and ensure the dollar's dominance in the global financial system.

The stablecoin bill's journey to passage was marked by substantial lobbying efforts. Companies focused on cryptocurrencies and digital asset advocates increased their lobbying expenditures to 690 million dollars in the second quarter, a 21% increase from the previous three months. This surge in spending coincided with accelerated legislative progress, culminating in the bill's signing into law by the President. The stablecoin bill is part of a broader legislative push to regulate the cryptocurrency industry, with additional measures awaiting Senate approval. These include legislation to create market structures for digital asset transactions and a ban on the Federal Reserve issuing its own cryptocurrency.

Stablecoins, a type of cryptocurrency designed to maintain a stable value by being pegged to assets like the U.S. dollar, euros, or gold, are now poised to become mainstream financial assets. These digital currencies, backed by highly liquid dollar assets such as cash and short-term U.S. Treasury bonds, offer a stable and efficient payment method that combines the benefits of the dollar with the efficiency of blockchain technology. This innovation provides a new avenue for capital markets, offering near-bank-level profits for stablecoin issuers like Circle and Tether, while also providing returns similar to money market funds.

The cryptocurrency industry's lobbying efforts in Washington have been strategic and focused. While the total spending remains relatively modest compared to other industries, the industry's lobbying has been concentrated on specific issues. Coinbase Global Inc., a major cryptocurrency exchange, was one of the largest spenders, allocating approximately 97 million dollars to lobbying efforts. These efforts were primarily directed towards issues related to digital assets, including stablecoins and market structure legislation. In contrast, major pharmaceutical companies like Pfizer spent significantly more on lobbying, covering a wide range of issues from federal budgets to intellectual property protection.

The political action committees (PACs) supporting the cryptocurrency industry have also played a crucial role. Fairshake, a PAC focused on the industry, along with two affiliated PACs, raised 230 million dollars. This funding was used to support candidates based on their stance on cryptocurrency, rather than directly influencing the presidential election. The significant financial backing from the industry highlights its growing influence in Washington, with the National Association of Realtors' PAC being the second-largest, raising 20 million dollars.

The lobbying efforts have also led to an increase in new hires, with 44 new lobbying registrations submitted to Congress in 2025, surpassing the total number of registrations from the previous year. Tether Operations, known for its high trading volume, added four new lobbying firms this year, spending 29 million dollars in total. The industry's strategic lobbying and political contributions have positioned it to shape future regulatory frameworks, ensuring that stablecoins and other digital assets continue to gain traction in the global financial landscape.