Crypto Industry Spent $13 Million on Lobbying as Clarity Act Failed to Pass
Lobbying Push Falls Short of Legislative Goal
The U.S. crypto industry spent more than $13 million on lobbying during the first half of 2026, according to federal disclosures reviewed by CoinDesk. The majority of this spending, approximately $8 million, was dedicated to pushing the Digital Asset Market Clarity Act through Congress. Despite these efforts, the bill failed to advance in the U.S. Senate.
This expenditure represents a direct lobbying campaign separate from the industry's larger contributions to election campaigns or advocacy groups. The goal was to secure a law regulating digital asset markets, but the objective was not met within the reporting period.
Where the Money Went
- Total lobbying spending for the first six months of 2026 exceeded $13 million.
- About $8 million was explicitly linked to the Clarity Act legislation.
- Coinbase was the largest single spender, contributing roughly $2.2 million.
- Kraken spent nearly $1 million, while other major firms like Digital Currency Group, Jump Crypto, and Paradigm also contributed significantly.
- Funds were split between in-house employees, trade association staff, and at least 42 outside lobbying firms.
Breakdown of Spending Sources
Disclosures indicate that about half of the registered lobbyists were direct employees of crypto firms, while the rest worked for outside agencies or trade associations. The $8 million allocated to the Clarity Act included $2.4 million paid to third-party lobbying firms and $2.1 million for lobbyists employed by trade associations. The remainder funded the influence operations of the crypto companies themselves.
Outside firms received substantial contracts. Checkmate Government Relations earned about $1.8 million from crypto clients, primarily Binance. Sternhell Group received $660,000, with three of its top four clients coming from the digital asset sector. Other firms like Michael Best Strategies and Phronesis DC each secured at least $200,000.
Industry Response to the Outcome
Coinbase spokesperson Julia Krieger stated that the company's efforts helped bring bipartisan market structure legislation "to the brink of passage." She added that the work laid the groundwork for ongoing regulatory actions at the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Lindsay Fraser, Chief Policy Officer at the Blockchain Association, noted that the group held over 380 meetings with congressional staff and federal officials. She mentioned that members participated in five "fly-ins" and 15 briefings covering market structure, decentralized finance (DeFi), and tax policy.
Concerns Over Internal Coordination
Despite the high spending, some observers noted a lack of unity within the industry. Corey Frayer, former SEC official and current director of investor protection at the Consumer Federation of America, cited "very big internal infighting" and a failure to unify around significant policy decisions.
Frayer suggested that crypto companies often ignore advice from compliance experts and outside law firms, potentially wasting money on lobbyists whose counsel they do not follow. However, the exact impact of this disunity on the bill's failure remains a matter of observation rather than confirmed fact.
Next Steps for Regulation
With the Clarity Act stalled, the focus is shifting toward regulatory bodies. The Blockchain Association plans to deepen its work with the SEC and CFTC as these agencies propose new rules. Coinbase emphasized that Washington operates on a "long game," suggesting continued engagement despite the legislative setback.
While the bill did not pass, proponents argue that the negotiations established a foundation for future attempts and increased lawmakers' understanding of crypto issues. It remains uncertain whether the legislation will receive another vote during the upcoming lame-duck session.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.