Crypto Industry's Q3 Lobbying Spending Cools: Coinbase and Others Cut Back After CLARITY Act Setback

BlockBeats news, October 22 - According to Bloomberg, as the crypto industry's top legislative priority, the CLARITY Act, stalled in the Senate in September, Coinbase and several major crypto industry organizations saw a decline in their federal-level lobbying spending in the third quarter compared to the second quarter. Nevertheless, related institutions still spent over $4 million on lobbying during the quarter, maintaining above this level for six consecutive quarters.

The slowdown in spending pace directly reflects the industry's setback in key legislative battles. The CLARITY Act aims to establish a clear regulatory framework for the digital asset market and is seen as a key step for the crypto industry to enter the mainstream financial system.

The reasons for the bill's failure are complex, with internal industry divisions considered one factor. Coinbase CEO Brian Armstrong publicly withdrew support in January before the Senate Banking Committee vote due to dissatisfaction with the bill's restrictions on stablecoin yield business, and was blamed by some industry insiders for delaying the golden window for legislation. Meanwhile, traditional banking groups continued to exert pressure, worried that crypto platforms offering interest-like stablecoin rewards to users would siphon off bank deposits, further weakening the bill's political feasibility. In addition, disputes over ethics provisions regarding the crypto asset interests of political figures also prevented Democrats from making concessions.

The contraction in lobbying spending is not only reflected in the amount changes but also in the adjustment of relationships between the industry and lobbying firms. Some lobbying firms terminated cooperation with crypto industry clients in the third quarter. Previously, the crypto industry had invested over $8 million in the first half of 2026 to promote market structure legislation, with Coinbase alone spending about $2.2 million and Kraken nearly $1 million, but ultimately failed to translate into legislative outcomes.