Over the past seven years, there has been a significant uptick in lobbying expenditures in the crypto industry, as highlighted by a recent study from Social Capital Markets. The study reveals a staggering 1,386% increase in lobbying spend by crypto companies, skyrocketing from $2.72 million in 2017 to $40.42 million in 2023. This exponential growth underscores a significant acceleration in lobbying efforts, with nearly 60% of the total $131.91 million spent on crypto lobbying occurring in the last two years.
In 2022 and 2023 combined, the industry allocated an impressive $78.94 million to influence policy and regulation. The top spender in 2023 was Apollo Global Management, investing $7.56 million in crypto lobbying, followed by the Managed Funds Association at $4.11 million and Coinbase at $2.86 million. These figures emphasize the increasing importance that major players in the financial sector are placing on shaping the regulatory landscape for digital assets.
Individual companies within the crypto industry have demonstrated remarkable increases in their lobbying expenditures over the years. For instance, Coinbase saw a jaw-dropping 3,475% rise in spending from a modest $80,000 in 2017 to $2.86 million in 2023. Notably, 74% of Coinbase’s total lobbying spending occurred in the last two years alone. Other significant players such as Binance.us, Ripple, and Tether Operations have also ramped up their efforts, showcasing substantial growth in their lobbying expenditures.
The study also sheds light on the use of “revolvers” in lobbying efforts. These individuals transition from the public sector to lobbying positions, leveraging their insider knowledge of government operations. For example, Apollo Global Management employed 104 lobbyists in 2023, with 78 of them being revolvers. Similarly, Coinbase utilized 39 lobbyists, with 32 of them being revolvers.
The surge in lobbying expenditures within the crypto industry aligns with the increased regulatory scrutiny and legislative efforts surrounding digital assets globally. Major players in the US are now making substantial investments in efforts to shape policies favorable to their interests. This trend underscores the growing maturity and financial clout of the crypto industry, as well as its recognition of the pivotal role that regulation will play in its future development and mainstream adoption.
As the election approaches, lobbying is expected to remain a key strategy for crypto companies looking to safeguard their interests and advance favorable policies. The study by Social Capital Markets paints a vivid picture of the evolving landscape of crypto lobbying expenditures, signaling a shift towards increased advocacy and engagement with policymakers. This trend underscores the industry’s proactive approach to shaping regulatory frameworks and underscores the pivotal role that lobbying will continue to play in the sector’s growth and development.
The surge in crypto lobbying expenditures reflects a dynamic and evolving industry that is increasingly proactive in influencing policy and regulations to advance its interests and foster innovation. As the sector continues to mature, lobbying is likely to remain a crucial tool for navigating the complex regulatory landscape and driving forward the adoption of digital assets on a global scale.
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