Over the past seven years, the world of cryptocurrency has seen a significant increase in lobbying expenditures. A study conducted by Social Capital Markets has revealed a staggering 1,386% surge in lobbying spend by crypto companies, skyrocketing from $2.72 million in 2017 to an impressive $40.42 million in 2023. This data highlights a remarkable acceleration in lobbying efforts, with nearly 60% of the total $131.91 million spent on crypto lobbying occurring in the last two years alone.
In 2022 and 2023 combined, the industry dedicated a substantial $78.94 million towards influencing policy and regulation. Notably, Apollo Global Management emerged as the top spender in 2023, investing a significant $7.56 million in crypto lobbying. Following closely behind were the Managed Funds Association at $4.11 million and Coinbase at $2.86 million. These figures underscore the increasing importance major players in the financial sector are placing on shaping the regulatory landscape for digital assets.
Individual companies within the crypto industry have also shown significant increases in their lobbying expenditures. For example, Coinbase experienced a staggering 3,475% rise in spending, from a mere $80,000 in 2017 to $2.86 million in 2023. Surprisingly, 74% of Coinbase’s total lobbying spending over the past seven years occurred within the last two years. Other major players such as Binance.us, Ripple, and Tether Operations also ramped up their lobbying efforts with substantial increases in expenditures.
The study also sheds light on the use of “revolvers” in lobbying efforts. These individuals leverage their insider knowledge of government operations by moving from the public sector to lobbying positions. For instance, Apollo Global Management employed 104 lobbyists in 2023, with 78 of them being revolvers. Similarly, Coinbase utilized 39 lobbyists, of which 32 were classified as revolvers.
The surge in lobbying expenditures within the crypto industry coincides with increased regulatory scrutiny and legislative efforts surrounding digital assets globally. Major players in the US are clearly investing heavily in efforts to shape policies favorable to their interests. This trend reflects the industry’s growing maturity and financial influence, as well as its acknowledgment of the critical role that regulation will play in its future development and mainstream adoption.
As the world of cryptocurrency continues to evolve, lobbying will likely remain a key strategy for companies seeking to protect their interests and advocate for favorable policies. With the upcoming election on the horizon, the importance of lobbying efforts in the crypto industry is only expected to grow. It is evident that lobbying has become an integral part of the industry’s operations, reflecting its commitment to influencing regulatory decisions in its favor.
