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Trump Era Sparks Crypto Lobbying Boom: 27 Firms Make History With First-Time Filings
The U.S. crypto industry is rapidly mobilizing its political influence, with at least 27 companies and advocacy groups filing first-time federal lobbying disclosures in recent months. The shift, detailed in a new report by The Hill, marks an aggressive move by digital asset firms to help shape the future of regulation under a more favorable political environment.
Lobbying Intensifies Amid Regulatory Momentum
According to the report, crypto newcomers—including firms in NFTs, prediction markets, and gaming—have poured nearly $2.8 million into lobbying efforts between April and June 2025. Their lobbying targets include the Treasury Department, Securities and Exchange Commission (SEC), and other key federal regulators.
In total, 73 crypto companies and associations were active in Washington during this period, spending a combined $11.4 million on lobbying.
Notably, Seychelles-based exchange KuCoin led all new participants, spending $1 million despite being barred from the U.S. market for at least two years due to prior regulatory violations.
Policy Wins: GENIUS and CLARITY Acts Lead the Way
The surge in political activity coincides with the passage of the GENIUS Act, a bipartisan bill establishing a federal framework for fiat-backed stablecoins. This legislation is viewed as a significant victory for the crypto lobby and has paved the way for further efforts.
The House has also advanced several additional bills during what some dubbed “crypto week,” including:
- The CLARITY Act, offering a legal structure for broader crypto asset regulation.
- An Anti-CBDC bill, which aims to prohibit the Federal Reserve from issuing its own central bank digital currency.
These developments reflect the industry’s shift from defensive regulatory positioning to proactive legislative engagement.
Beyond Bitcoin: Expanding Industry Footprint
Lobbying disclosures reveal a wide array of crypto use cases behind the push for favorable policy:
- Bitdeer Technologies, focused on Bitcoin mining, is working to address energy and currency concerns.
- Polymarket (operating as Blockratize) promotes crypto-based betting markets for real-world events.
- Gala Games gained attention for sponsoring the White House’s Easter Egg Roll, positioning crypto gaming in the national spotlight.
The Solana Policy Institute’s CEO, Miller Whitehouse-Levine, emphasized that the challenge isn’t technological innovation—but navigating legacy legal frameworks.
“The pendulum has swung from one extreme to another,” Whitehouse-Levine said. “We need regulatory consistency that allows innovation to flourish without overcorrecting in either direction.”
Looking Ahead: Senate Holds the Key
The crypto sector is now lobbying the U.S. Senate to take up the CLARITY Act, which could solidify federal oversight and classification of crypto firms. Industry leaders are also backing continued restrictions on a federal CBDC, aligning with broader concerns about government-controlled digital currencies.
As the political climate continues to evolve, the Trump administration’s deregulatory stance has emboldened the industry. But advocates remain cautious, hoping to avoid the policy whiplash that defined earlier years.
The message from the crypto sector is clear: They’re here to shape the rules—before the rules shape them.
@ Newshounds News™
Source: bitcoinist.com
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Public Debt Donations Go Digital: U.S. Treasury Now Accepts Venmo and PayPal
In a notable intersection of consumer fintech and public finance, the U.S. Department of the Treasury has authorized citizens to contribute directly toward reducing the national debt using payment platforms Venmo and PayPal. The decision modernizes a decades-old initiative and reflects an evolving strategy in citizen engagement amid record-high federal debt levels.
A New Interface for an Old Program
The update comes under the “Gifts to Reduce the Public Debt” program, which has existed since 1996 but has gained little attention or traction. Since inception, the program has raised only $67.3 million—an amount that is negligible when compared to the current $36.7 trillion national debt.
According to the Treasury:
- Citizens can now make voluntary debt-reduction donations via Pay.gov using PayPal or Venmo;
- The debt has increased 87 percent since 2010, when it stood at $19.59 trillion;
- The initiative aims to make public contributions more accessible, particularly for younger, tech-savvy users accustomed to mobile payment systems.
While the move brings convenience and visibility to a long-overlooked program, reactions from financial experts have been skeptical.
Samson Mow, CEO of bitcoin infrastructure firm JAN3, dismissed the measure as symbolic. “It’s like sending bitcoin to a burn address,” he remarked, suggesting the donations have no meaningful impact on fiscal sustainability.
Fiscal Policy in the Spotlight
The new donation pathway also comes as national debate intensifies over the fiscal implications of former President Donald Trump’s proposed tax reform, dubbed the “Big, Beautiful Bill.” The Congressional Budget Office (CBO) projects the bill could add $3.4 trillion to the federal deficit over the next decade.
This trajectory has drawn strong criticism from both public figures and economists. Elon Musk has openly criticized the move to raise the debt ceiling by $5 trillion, while hedge fund manager Ray Dalio warned that the U.S. is on an unsustainable fiscal path.
“We are spending 40 percent more than our income,” Dalio said, warning of the risk of a “deadly debt spiral” if major reforms are not enacted. He estimates the probability of a “financial trauma” due to a loss of confidence in U.S. debt now exceeds 50 percent.
To stabilize the situation, he recommends cutting the deficit from nearly 7 percent of GDP to just 3 percent, through a combination of spending reductions and increased tax revenues.
Government Response and Revenue Projections
Treasury Secretary Scott Bessent, in contrast, has taken a more optimistic tone. He asserts that Trump’s fiscal plan will produce net benefits over the long term, particularly due to new tariffs projected to raise $2.8 trillion over the next ten years. He also claimed that customs duties could bring in $300 billion this year alone—nearly 1 percent of GDP—and cited a reported budget surplus in June as evidence of positive momentum.
Nonetheless, the fundamental structural challenges remain. While enabling Venmo and PayPal donations is a notable technological step, it does little to address the deeper issues shaping the country’s fiscal trajectory: rising entitlement costs, political polarization, and diminishing global confidence in the U.S. dollar’s primacy.
As the national debt continues to grow and the world watches U.S. fiscal policy evolve, the core issue is no longer whether the debt is sustainable—but how much longer it can be sustained.
@ Newshounds News™
Source: CoinTribune
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HKMA Signals Caution on Stablecoin Licensing Amid Market Euphoria
As Hong Kong’s new stablecoin legislation is set to come into effect on August 1, the Hong Kong Monetary Authority (HKMA) is moving to temper industry expectations. Amid a surge of interest from firms eager to enter the stablecoin market, HKMA CEO Eddie Yue has cautioned that only a small number of licenses will be granted initially—and that even licensed entities will face stringent compliance burdens.
Stablecoin Rules Take Effect as Market Activity Surges
The legislation, passed in May, has already triggered a spike in stock prices and token valuations following announcements from various firms with stablecoin ambitions. However, the HKMA is taking steps to curb what it sees as excessive optimism and speculative behavior.
Eddie Yue warned of the need to “further rein in the euphoria,” emphasizing that:
- Only a limited number of stablecoin licenses will be issued at the outset;
- Most applicants are likely to be disappointed;
- Priority may be given to firms already involved in the HKMA’s Stablecoin Sandbox.
Participants in the sandbox include notable entities such as a consortium led by Standard Chartered, JD Coinlink (a subsidiary of Chinese e-commerce giant JD.com), and RD InnoTech. However, Yue made it clear that even priority status does not guarantee approval.
Profitability, Scaling, and Compliance Challenges
Yue also cast doubt on the immediate profitability of early stablecoin ventures. This is partly due to the impending rollout of robust anti-money laundering (AML) regulations, which are expected to go live alongside the licensing framework next week.
In his view:
- The new rules will introduce “stringent regulatory requirements”;
- These rules will “inevitably limit the room for stablecoin businesses to scale rapidly in the short term”;
- Discussions around stablecoins often remain “idealistic,” lacking concrete, commercially viable use cases.
Yue noted that dozens of companies have contacted the HKMA to discuss stablecoin initiatives. Yet most of the proposals remain conceptual, lacking technical depth and clear risk management strategies. Some firms, he observed, might benefit from partnering with more experienced entities to navigate the complex regulatory landscape.
Licensing Process to Launch in August
The HKMA is expected to formally unveil its stablecoin license application process next week. While Hong Kong’s regulatory approach is seen as a step forward in establishing clear digital asset frameworks, the cautious tone from regulators underscores the city’s emphasis on compliance, risk control, and market stability.
As firms continue to explore the stablecoin space, Hong Kong’s measured rollout signals a deliberate effort to foster innovation—without compromising the integrity of the financial system.
@ Newshounds News™
Source: Ledger Insights
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