Ripple Labs spent $ 690,000 on lobbying in the United States in 2020, which still hasn’t saved the company from the Securities and Exchange Commission.
According to regulatory disclosures for 2020, Ripple’s lobbying program has eclipsed that of other companies in the crypto industry. Coinbase, that’s it first US crypto exchange to issue public shares spent $ 230,000 in the same year, while other exchanges such as Binance.US, Gemini and Kraken reported no spending on lobbying.
However, Ripple’s spending on lobbying is relatively meager compared to the Big Tech giants. Facebook, for example, spent over $ 5 million in the fourth quarter of 2020.
Formerly known as the Libra Association, the Diem Association reported no lobbying activity in 2020, despite the future stablecoin issuer. major battle with regulators. In the past, it had contracted Skadden law firm’s offices in Washington, DC. While the Diem Association has consistently downplayed its relationship with Facebook, in 2020 Facebook maintained a $ 200,000 contract with lobbyists at FS Vector to focus on blockchain issues.
Ripple was also an FS Vector client by the way. In the first half of 2020, Ripple also ended its internal lobbying team. It now relies solely on contracts with professional companies.
Lobbying activities funded by Ripple mainly focused on legislation for Congress, such as the Token Taxonomy Act and the Digital Commodity Exchange Act. These laws establish new rules for which digital assets are or are not securities.
Questions about securities law and cryptocurrency are of course crucial to Ripple’s business model. The firm had long had to deal with whether XRP was in fact a security. These questions culminated in the SEC, the US securities regulator, file a suit against Ripple Labs late December 2020. In its complaint, the SEC alleges that “the vast majority of Ripple’s revenue came from the sale of XRP, and Ripple relied on those sales to fund its operations.”
Neither Ripple nor FS Vector responded to Cointelegraph’s request for comment. Representatives for Diem declined to comment.