In 2020 Ripple Labs invested $690,000 on lobbyists in the United States, which nevertheless did not save the company from the Stock and Exchange Commission.
Per constitutionally required disclosures for 2020, Ripple’s lobbying program dwarfed that of other corporations in the crypto industry. Coinbase, which appears to be the first American crypto exchange to issue public stock, invested $230,000 in the same year, while other exchanges including Binance.US, Gemini and Kraken did not disclose any lobbying expenses.
However, Ripple’s investment on lobbying is comparatively paltry compared to the Major Tech giants. For eg, Facebook spent well over $5 million in the fourth quarter of 2020.
The Diem Association, formerly known as the Libra Association, registered no lobbying efforts in 2020 amid the prospective stablecoin issuer’s big struggles with regulators. It had contracted with Washington, D.C. in the past. Offices of the law firm of Skaden. Although the Diem Organization has continually downplayed its partnership with Facebook, Facebook has retained a $200,000 FS Vector lobby deal over 2020 to work on blockchain concerns.
Ripple was also a client of the FS Vector. Ripple also marked the termination of the in-house lobbyist unit in the first half of 2020. It is now dependent exclusively on arrangements with specialist companies.
The advocacy efforts sponsored by Ripple were mainly directed at bills before Congress, such as the Token Taxonomy Act and the Digital Asset Trading Act. These pieces of law lay out new guidelines on which digital commodities are or are not securities.
Security law and crypto concerns are clearly important to Ripple’s business model. The business has been plagued for a long time with concerns as to whether XRP was really a defense organization. These concerns resulted in a lawsuit brought by the SEC, the U.S. securities regulator, against Ripple Labs near the end of December 2020. In its lawsuit, the SEC alleges that “the overwhelming majority of Ripple’s revenue came from its sales of XRP, and Ripple relied on those sales to fund its operations.”
Neither Ripple nor FS Vector responded to Cointelegraph’s request for comments. Representatives for Diem failed to make any remarks.
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