The cryptocurrency industry’s lobbying efforts over the regulation of stablecoins reportedly saw an increase in spending throughout 2023.

Stablecoins, which serve as a bridge between the crypto and traditional financial systems, have attracted interest from the President Joe Biden administration and congressional lawmakers from both parties, Bloomberg reported Wednesday (Dec. 20).

Federal regulation would help legitimize the asset class and promote broader adoption, according to the report.

Tether, the issuer of the largest stablecoin, spent $760,000 on lobbying during the first three quarters of 2023, double the amount spent the previous year, the report said.

Circle Internet Financial, a competitor of Tether, increased its lobbying spending to $300,000 during the same period, per the report.

Digital asset exchange Coinbase spent $2 million on lobbying related to all issues around crypto, with a chunk of it focused on stablecoins, according to the report.

Traditional financial firms like Bank of America and Visa, as well as the U.S. Chamber of Commerce, have also funded lobbying efforts, the report said.

The House Financial Services Committee has become a battleground for the stablecoin debate, with negotiations between committee chair Patrick McHenry and top Democrat Maxine Waters expected to resume in 2024, per the report.

Lobbying efforts have extended beyond stablecoins, with the crypto industry spending a record-breaking $19.3 million on lobbying in the first three quarters of 2023, according to the report.

Looking ahead to 2024, industry experts predict that lobbying spending will continue to increase, the report said. The industry is also making political donations in preparation for the 2024 elections, with the hope of influencing policies that favor the sector.

Pro-crypto super political action committee (PAC) Fairshake has raised $78 million, with contributions from companies like Coinbase, Circle, Ripple and venture capital firm Andreessen Horowitz, per the report.

It was reported Dec. 5 that cryptocurrency firms are spending record amounts of cash on lobbying despite the collapse of FTX, which had been one of the biggest spenders.

The increase in lobbying money comes as crypto companies have been trying to restore their reputations in the wake of several scandals.