Stablecoin Titans Tether and Circle: Championing the Cause for Stablecoin Legisl...

As we delve deeper into digital finance, Tether and Circle – two stablecoin industry titans are at the forefront, championing the push for stablecoin legislation and regulations. Their efforts have been instrumental in positioning stablecoins on the political landscape, eliciting attention from lawmakers, and laying the groundwork for regulatory frameworks around these dollar-tied digital currencies.

Shaping the Future of Stablecoins: Tether and Circle’s Lobbying Efforts

Data reveals that since the onset of 2022, stablecoin issuers such as Tether, Circle, and a few others have invested over a million dollars in lobbying efforts. That is a testament to their commitment to influencing policymaking on Capitol Hill.

Recently, the discourse around stablecoins has gathered momentum in Washington, propelling these dollar-linked digital assets into the limelight. This heightened interest is driving an increasing demand for a comprehensive regulatory framework to govern the functioning of stablecoins.

The Power Players and Their Strategies

Tether’s lobbying endeavors are facilitated by the law offices of Michael Jason Lee, with FTI Government Affairs – a bipartisan-connected consulting firm – orchestrating these efforts. 

ProPublica, a public interest news outlet, divulged that Tether’s lobbying expenditure touched approximately $600,000 since the dawn of 2022, with quarterly expenditures averaging around $120,000.

The central objective of these lobbying ventures has been to endorse stablecoin-related legislation. As the issuer of the globally dominant stablecoin, USDT – boasting a market share of 63% and an impressive circulation value of $83 billion – Tether’s active involvement in lobbying is hardly surprising.

Further illuminating Tether’s financial commitments, Open Secrets – a government transparency organization – disclosed that Tether allocated an additional $270,000 for lobbying in the first quarter of 2023.

Circle: An Active Player in the Legislative Battle

Meanwhile, Circle, another prominent stablecoin issuer, has invested substantially in lobbying pursuits. The company began lobbying in late 2021 with the strategic consulting firm Invariant. Since then, Circle’s lobbying expenditure has escalated to at least $560,000, as reported by ProPublica.

Circle’s lobbying efforts revolve around three central themes: enlightening policymakers about its business model, elucidating stablecoin and cryptocurrency concerns to Congressional members, and keeping tabs on cryptocurrency proposals. 

The company’s lobbying endeavors have spanned several prominent institutions, including the Senate, House of Representatives, Treasury, Office of the Comptroller of the Currency, Commodity Futures Trading Commission, and Securities and Exchange Commission.

At present, Circle’s quarterly lobbying budget stands at $100,000. The company issues USDC – the world’s second-largest stablecoin, with a market share of 22.6% and a circulation of $29.5 billion. Jeremy Allaire, CEO of Circle, recently emphasized the necessity for stablecoin legislation and secure access to digital dollars.

Other Industry Players in the Lobbying Arena

Another notable player, Paxos – previously known for issuing the Binance stablecoin BUSD – has allocated around $300,000 for lobbying since early 2022. In addition, the company employs Mindset, a bipartisan public policy firm, to concentrate on issues pertinent to drafting stablecoin legislation.

Notably, crypto industry lobbying expenses witnessed a dramatic surge of 120% in the United States in 2022, per a report by Cointelegraph. Yet, the financial commitment from stablecoin issuers pales compared to the whopping amounts expended by other prominent crypto entities. For instance, Coinbase has recently invested approximately $5.5 million in lobbying. 

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