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Coinbase Leads Crypto Lobby Surge with 3,475% Spending Jump Since 2017

The rise of cryptocurrency has transformed the global financial landscape, and Coinbase, one of the largest cryptocurrency exchanges in the world, has been at the forefront of that evolution. A recent surge in Coinbase’s lobbying efforts has highlighted the company’s push to influence U.S. regulatory frameworks. According to reports, Coinbase’s lobbying expenditure has soared by a staggering 3,475% since 2017, making it one of the most influential players in the crypto industry’s political advocacy.

This massive spending increase is a testament to the growing importance of regulation in the cryptocurrency space, as the industry navigates a complex legal environment. In this article, we’ll explore the reasons behind Coinbase’s surge in lobbying expenditure, what it means for the future of crypto regulation, and how this surge reflects broader trends within the digital currency industry.

What is Lobbying, and Why is it Important in the Crypto Industry?

Lobbying is the process by which individuals or organizations attempt to influence political decisions, often by engaging directly with policymakers. In the cryptocurrency space, where the legal and regulatory landscape is still developing, lobbying efforts are critical. Regulations affect how cryptocurrencies are classified, taxed, and traded, and they influence the broader adoption and legitimacy of digital assets.

For Coinbase and other crypto companies, engaging with lawmakers and regulators has become essential to ensure favorable outcomes for the industry. Without clear regulatory frameworks, businesses operating in this space face uncertainty, which can stifle innovation and limit growth.

The Growth of Coinbase’s Lobbying Efforts

Since 2017, Coinbase’s lobbying efforts have grown exponentially. In 2017, Coinbase spent a modest amount on lobbying, but by 2023, that figure had jumped by 3,475%. This dramatic increase reflects the company’s growing focus on shaping crypto regulations in a way that benefits the industry as a whole, and its business model in particular.

One of the reasons behind this significant increase is the growing recognition by both Coinbase and the broader crypto industry that regulation is inevitable. Governments worldwide, especially in the United States, are paying closer attention to the risks and benefits associated with cryptocurrencies. For Coinbase, influencing these regulatory frameworks is not just beneficial but necessary for ensuring that the company can operate freely and with fewer legal obstacles.

Coinbase’s Lobbying Focus: Key Issues and Policies

Coinbase’s lobbying efforts have focused on several key areas:

  1. Clear Regulations for Cryptocurrencies: One of the most pressing issues is the need for clear and consistent regulations regarding cryptocurrencies. Coinbase has been pushing for legislation that defines how cryptocurrencies should be classified—whether as securities, commodities, or something else entirely. This clarity is essential for both Coinbase and its users to understand their legal obligations and rights.
  2. Taxation: Tax treatment of cryptocurrency transactions is another area where Coinbase has been actively lobbying. Currently, crypto assets are often treated as property, which can lead to complex tax reporting requirements. Simplifying these regulations would make it easier for users to comply with tax laws and could encourage more widespread adoption of digital assets.
  3. Consumer Protection: As more people enter the cryptocurrency space, there is growing pressure to implement consumer protection laws that safeguard users from fraud, hacking, and other risks associated with digital assets. Coinbase supports measures that protect users while ensuring that such regulations do not stifle innovation.
  4. Stablecoins and CBDCs (Central Bank Digital Currencies): Stablecoins, which are cryptocurrencies pegged to the value of traditional currencies like the U.S. dollar, have gained significant attention from regulators. Coinbase has lobbied for the establishment of a regulatory framework that allows for the continued development and use of stablecoins while addressing concerns about their impact on the broader financial system. The company has also been involved in discussions around Central Bank Digital Currencies (CBDCs), advocating for a balanced approach that integrates private sector innovations with government oversight.
  5. DeFi and Innovation-Friendly Policies: Decentralized finance (DeFi) is an area of rapid growth within the crypto space. Coinbase has been active in lobbying for policies that support innovation in DeFi while addressing concerns about security and financial stability.

Why the 3,475% Spending Jump?

Several factors have contributed to Coinbase’s decision to increase its lobbying expenditure so dramatically:

  1. Regulatory Uncertainty: One of the primary drivers of Coinbase’s increased lobbying efforts is the regulatory uncertainty that still surrounds cryptocurrencies in the United States. With agencies like the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) taking different views on the classification and regulation of digital assets, it is clear that the industry requires clearer rules to operate effectively.
  2. Expanding Business Interests: Coinbase has grown rapidly since its founding in 2012. As the company expands its offerings—moving from simple cryptocurrency exchanges to providing services like custody, staking, and NFT trading—the need for regulatory clarity has become even more pressing. Lobbying ensures that Coinbase can influence the development of laws and regulations that impact its diverse range of products and services.
  3. Global Competitiveness: The U.S. is not the only country grappling with crypto regulation. Other major markets, such as the European Union and China, have begun to craft their own regulatory approaches. Coinbase’s lobbying in the U.S. is part of a broader effort to ensure that American regulatory frameworks remain competitive and do not stifle the company’s ability to compete globally.
  4. Increased Scrutiny from Lawmakers: As the cryptocurrency industry grows, it has come under increased scrutiny from lawmakers, regulators, and even the public. Issues such as money laundering, the use of crypto in illicit activities, and the environmental impact of crypto mining have led to calls for stricter regulation. In response, Coinbase has ramped up its lobbying efforts to ensure that any new regulations are balanced and do not harm legitimate actors within the industry.

The Impact of Coinbase’s Lobbying on the Crypto Industry

Coinbase’s significant investment in lobbying is not just about protecting its own interests—it also sets the stage for broader industry-wide changes. By advocating for clear regulations, the company is helping to create a more stable environment for other crypto businesses to thrive.

  1. Increased Legitimacy for Cryptocurrencies: As major players like Coinbase engage with policymakers, they contribute to the overall legitimacy of the cryptocurrency industry. This engagement can help alleviate concerns among regulators and the public about the risks associated with digital assets.
  2. Favorable Regulations for the Industry: Coinbase’s lobbying efforts are aimed at ensuring that the cryptocurrency industry as a whole benefits from favorable regulations. This can include policies that support innovation, protect consumers, and create a more predictable regulatory environment.
  3. Driving Adoption: As regulations become clearer, more institutional investors and mainstream users may feel comfortable entering the cryptocurrency space. This could lead to increased adoption of digital assets, benefiting the entire industry.

Criticism of Coinbase’s Lobbying Surge

While Coinbase’s lobbying efforts have been praised by many in the industry, they have also faced criticism. Some argue that the company’s spending surge reflects the increasing influence of corporate money in politics. Critics claim that this level of spending gives Coinbase undue influence over the regulatory process, potentially leading to laws that favor large companies at the expense of smaller startups or individual users.

Additionally, there are concerns that Coinbase’s lobbying may prioritize profit over the core values of decentralization and transparency that underpin the cryptocurrency movement. For many crypto enthusiasts, the involvement of large corporations in political lobbying runs counter to the ideals of a decentralized financial system.

Conclusion: The Future of Crypto Lobbying

Coinbase’s massive increase in lobbying expenditure underscores the importance of regulation in the future of the cryptocurrency industry. As governments worldwide continue to develop frameworks for digital assets, Coinbase and other major players will likely continue to invest heavily in political advocacy.

For the cryptocurrency industry, this increased lobbying activity may ultimately lead to a more stable and predictable regulatory environment, which could drive further adoption and innovation. However, it will be important to ensure that these regulations balance the interests of businesses, consumers, and the broader goals of the crypto movement.

In the coming years, as Coinbase and other crypto companies continue to engage with policymakers, the landscape of cryptocurrency regulation will likely evolve rapidly. Whether these efforts lead to a more open and innovative financial system or one dominated by a few large players remains to be seen.

Altcoins

Avalon Lab’s $AVL TGE : Here’s the First Impressions

The decentralized finance (DeFi) market has integrated new innovations that combine blockchain technology and traditional finance. A recent event in the segment is the Avalon Labs, a bitcoin-backed DeFi platform’s new token $AVL . On 6 February $AVL Airdrop was concluded on Binance. Therefore, the door to great earnings and opportunities is opening.

What is Avalon Labs?

Avalon Labs: Revolutionizing Bitcoin Finance

Powering ₿itcoin On-Chain Capital Markets. Avalon Labs is rapidly emerging as the dominant force in the Bitcoin-backed CDP space and the largest money market for Bitcoin derivatives.

  • A stablecoin solution – Stemming volatility in the market by providing a stable solution.
  • Yield accounts – Enabling the users to earn passive income on their crypto holdings.

Avalon Labs uses Bitcoin as the base collateral and combines it with flexible DeFi solutions, making its services appealing to crypto investors who want to gain new financial opportunities.

Avalon Lab’s New $AVL Governance Token

The newest governance token $AVL by Avalon Labs is aimed at empowering the community and building the Avalon ecosystem. $AVL token holders receive voting rights which enables them to make important decisions and control the future direction of the platform. $AVL goes beyond governance by providing real benefits such as rebates, special loans, and bonus tier allocations, further improving the user experience within Avalon.

With the earning capabilities still in stock after the airdrop on Binance, its primary focus is sharing the platform in order to broaden its scope of earnings. Additionally, TGE is set to be around the corner so these earnings should increase relatively soon.

https://twitter.com/avalonfinance_/status/1887427298288410810/

Avalon Labs is gearing up for the launch of its governance token, $AVL, scheduled for February 12. As a Bitcoin finance hub, Avalon offers a BTC-backed stablecoin, $USDa, and provides staking opportunities with attractive annual percentage yields (APY). By staking USDa, users can earn a total of 45% APY, divided into 20% in USDa and 25% in $AVL tokens. This initiative not only incentivizes participation but also integrates users into Avalon’s growing ecosystem. The introduction of $AVL marks a significant milestone, empowering the community with governance capabilities and aligning stakeholders with the platform’s future developments.

AI KAITO’s Pre-TGE Arena surrounds $AVL, which is already Kaito AI’s top gainer

Kaito is a platform that hosts unstructured information web3 and utilizes AI to create actionable insights from the retrieved data. Kaito provides an index of various Web3 content such as social media, governance forums, research papers, news articles, podcasts, and even conference speeches which makes it easy for users to grapple with the world of blockchain information.

KAITO AI’s Token and Narrative Mindshare

It’s a known fact that the Web3 space is cluttered with irrelevant information, which makes it frustrating to stay on top of things. The Token mindshare feature specifically monitors the attention span tokens receive on a given period of time.

They track tokens that are gaining attention and those which are losing value. Moreover, their narrative mindshare allows users to understand popular stories and developments within the Web3 space, enabling users to make well informed investment and strategic choices.

https://twitter.com/avalonfinance_/status/1887393582883217456

Even on such a useful and innovative AI-powered platform, $AVL shows its strength. Get your hands on some $AVL and start sharing!

Avalon Labs has made strides in the DeFi space by combining Bitcoin’s security with decentralized financial services. This combination is particularly important because it broadens the use of Bitcoin beyond mere storage of value. Avalon’s BTC backed stablecoin, $USDa, on the other hand, offers a reliable hedge against volatility while also having the perks of decentralization, unlike other DeFi platforms that depend on Ethereum based assets.

In addition, the governance model powered by $AVL enables an approach where users can collaboratively decide the future direction of the platform. There is vast potential for Bitcoin backed DeFi and Avalan is bringing this possibilty to life. It provides users with a different option compared to traditional centralized crypto lending platforms which routinely put up stringent rules and governance over peoples’ funds.

With the rise of the need for a supplementary financial alternative, Avalon Labs could lead BCT-based DeFi solutions and serve as a foundation for deeper integrations and usage by the general public.

How to Acquire and Make Use of $AVL

For $AVL, users are starting to look for ways to earn more with the governance token after a successful $AVL airdrop on Binance. Users who missed the airdrop still have ways to get into Avalon:

  1. Purchasing $AVL – Users will be able to buy and sell the token on major exchanges right after TGE.
  2. $USDa Staking – Users can stake their USDa backed with BTC and earn as much as 45 percent APY (20 percent in USDa, 25 percent in $AVL).
  3. Governance Participation – Voting is possible with $AVL tokens in which users can select policies, vote on proposed updates, and changes in incentives.
  4. Exploitation of Other Benefits – These users of Avalon could receive rebates, special loans, and investment offers that are not available to non-$AVL holders.

As with best emerging digital asset, $AVL participation features will be more prominent within the Avalon ecosystem. These properties will make the token interesting for long-term investors, participants of DeFi. Grab the opportunity before it is too late!

Website: https://www.avalonfinance.xyz/

Twitter: https://x.com/avalonfinance_/status/1881236795037565404

Discord: https://discord.gg/avalonlabs

Telegram: https://t.me/AvalonLabs_Official

Medium: https://medium.com/@avalonlabs

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Crypto

DeepSeek’s AI Breakthrough Triggers Bitcoin and Crypto Market Downturn

DeepSeek's AI Breakthrough Triggers Bitcoin and Crypto Market Downturn

On January 27, 2025, Bitcoin’s price experienced a notable drop of 6%, coinciding with the debut of China’s open-source AI model, DeepSeek. This development sent ripples through global markets, affecting both traditional tech stocks and cryptocurrencies.

DeepSeek’s Impact on Global Markets

DeepSeek’s introduction challenged the prevailing narrative of U.S. dominance in artificial intelligence. Developed with a budget of just under $6 million using less advanced hardware from Nvidia, DeepSeek emerged as a formidable competitor to American AI firms like OpenAI.

The unexpected efficiency and cost-effectiveness of DeepSeek led to a significant sell-off in tech stocks. Major companies, including Apple, Nvidia, Tesla, Microsoft, Amazon, Meta, and Alphabet, faced substantial losses. Nvidia, in particular, saw its shares drop nearly 17% in a single day.

Cryptocurrency Markets React

The turbulence wasn’t confined to traditional tech sectors. Cryptocurrencies, often viewed as risk-on assets, mirrored the broader market’s anxiety. Bitcoin (BTC) and Ether (ETH) recorded losses of 6% and 7%, respectively, with several altcoins experiencing double-digit declines.

Analysts emphasized that while DeepSeek is not directly related to cryptocurrencies, its sudden emergence influenced market sentiment. Jean Rausis, co-founder of the decentralized exchange SMARDEX, noted that crypto was a casualty of broader market reactions.

JP Richardson, CEO of crypto exchange Exodus, highlighted the perception of cryptocurrencies as risk-on assets. He pointed out that market jitters, such as those caused by unexpected developments like DeepSeek, often lead to simultaneous declines in both stock and crypto markets.

The Correlation Between Crypto and Traditional Markets

The incident underscores the growing correlation between cryptocurrency and traditional financial markets. As digital assets gain mainstream acceptance, their susceptibility to global economic events becomes more pronounced. An investor note from BitMEX highlighted that the strong correlation between Bitcoin and equities remains a significant market dynamic.

While the immediate aftermath saw stabilization and partial recovery in prices, the event serves as a reminder of the interconnectedness of global markets. Investors are advised to stay vigilant, recognizing that developments in seemingly unrelated sectors can have cascading effects on their portfolios.


Frequently Asked Questions (FAQs)

What is DeepSeek?

DeepSeek is China’s open-source, highly efficient AI model that has recently entered the global market, presenting competition to established American AI firms.

How did DeepSeek affect the cryptocurrency market?

The launch of DeepSeek led to a sell-off in tech stocks due to its unexpected competitiveness. This market sentiment spilled over into the cryptocurrency sector, causing notable declines in Bitcoin and other digital assets.

Why are cryptocurrencies affected by developments in the tech industry?

Cryptocurrencies are often viewed as risk-on assets. Significant events in the tech industry can influence investor sentiment, leading to simultaneous movements in both tech stocks and crypto markets.

Is the correlation between Bitcoin and traditional stocks increasing?

Yes, as cryptocurrencies gain mainstream adoption, their price movements are increasingly influenced by broader economic and technological developments, leading to a stronger correlation with traditional stocks.

What should investors learn from this event?

Investors should recognize the interconnectedness of global markets and remain aware that developments in one sector can have ripple effects across various asset classes, including cryptocurrencies.

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Crypto

Trump Administration Signals ‘Golden Age’ for Cryptocurrency

USA Administration Signals 'Golden Age' for Cryptocurrency

The Trump administration is setting the stage for a new era in cryptocurrency policy. With David Sacks as the newly appointed AI and Crypto Czar, the government aims to boost innovation, offer regulatory clarity, and ensure the U.S. stays ahead in digital assets.

At a recent press conference, Sacks outlined a plan to support the crypto industry while balancing consumer protection. This announcement comes as the House and Senate launch a bipartisan working group to create a clear framework for crypto regulations.


A Bold Crypto Plan: What It Means for Investors

The White House and Congress have introduced new policies to help the crypto industry grow. These initiatives focus on innovation, security, and market stability.

Key Changes in Crypto Policy

  • Clear Regulations: The government will provide clear rules for digital assets, reducing uncertainty.
  • Stronger Innovation Support: Blockchain developers will have more freedom to create and expand their projects.
  • Market Protection: While innovation is encouraged, measures will be taken to prevent fraud and protect investors.

David Sacks emphasized that the U.S. must lead the world in digital assets. His approach signals a major shift from previous administrations, which often clashed with the crypto industry.


Why Crypto Markets Are Reacting Positively

Crypto Investors See New Opportunities

Many industry leaders and investors are celebrating this shift.

  • Coinbase CEO Brian Armstrong described the policy shift as “a breath of fresh air” for the industry.
  • The market reaction has been positive, with several major altcoins seeing price increases after the announcement.
  • Foreign investors are considering moving their crypto businesses to the U.S., which could boost the economy.

Transitioning from Uncertainty to Stability

For years, crypto businesses faced legal challenges and regulatory confusion. This policy aims to change that by providing stable and predictable guidelines. The administration wants American companies to lead rather than moving overseas due to unclear regulations.


The Role of the Crypto Czar: Who is David Sacks?

David Sacks, a tech entrepreneur and investor, is known for his support of cryptocurrency and free-market policies. He has backed major blockchain projects and now plays a key role in shaping U.S. crypto regulations.

Concerns Over His Appointment

Despite the positive outlook, some critics have raised concerns:

  • Potential Conflicts of Interest: Sacks has deep ties to private sector tech companies, which could lead to bias in decision-making.
  • Lack of Oversight: His position does not require Senate confirmation, which some see as a lack of accountability.
  • Transparency Issues: Many believe he should disclose more about his financial ties to ensure fair policies.

However, supporters argue that his experience in the private sector makes him the right person to lead crypto policy reforms.


The Future of Cryptocurrency in the U.S.

With the new regulations, executive actions, and bipartisan support, the U.S. is positioning itself as a global leader in digital assets. The next few months will be critical in determining how these policies take shape.

What’s Next?

  • The new crypto working group will release its first regulatory proposal in the coming weeks.
  • More executive orders could be announced to further streamline regulations.
  • Crypto markets may continue to react positively if the government follows through on its promises.

FAQs: What You Need to Know

What does the new crypto policy mean for investors?

It creates clearer rules and reduces uncertainty, making it easier to invest and trade cryptocurrencies in the U.S.

Why is David Sacks leading this initiative?

He has a strong background in technology and finance, making him a key player in shaping crypto regulations.

Will this policy make crypto more accessible?

Yes. With regulatory clarity, businesses can offer better services, leading to wider adoption of digital assets.

Are there concerns about this new crypto push?

Yes, some critics worry about conflicts of interest, lack of oversight, and transparency issues surrounding David Sacks.

How will this impact crypto businesses?

It will likely boost growth, attract investors, and reduce legal risks for crypto companies operating in the U.S.


Final Thoughts

The Trump administration’s pro-crypto stance is a game-changer for the industry. If implemented correctly, these policies could pave the way for a thriving digital asset market in the U.S. However, questions remain about oversight and potential conflicts of interest.

For now, investors, developers, and businesses are watching closely as the regulatory framework takes shape. 🚀

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