With the upcoming election, crypto companies will likely continue to use lobbying to protect their interests and push for favorable policies.
A new study by blockchain analysis firm Social Capital Markets shows that cryptocurrency companies have dramatically increased their lobbying expenses over the past seven years. Their spending rose by 1,386%, from $2.72 million in 2017 to $40.42 million in 2023.
The research highlights that nearly 60% of the total $131.91 million spent on crypto lobbying happened in the last two years. In 2022 and 2023, the industry spent $78.94 million to influence policy and regulation.
Crypto Giants Ramp Up Lobbying
Apollo Global Management spent the most on lobbying in 2023, investing $7.56 million. The Managed Funds Association followed with $4.11 million, and Coinbase spent $2.86 million. These numbers show how much major financial players want to shape the rules for digital assets.
Individual companies also increased their lobbying expenses significantly. Coinbase’s spending jumped by 3,475%, from $80,000 in 2017 to $2.86 million in 2023. Notably, 74% of Coinbase’s total lobbying spending over the past seven years happened in the last two years.
Binance.US increased its lobbying spending by 656.25%, from $160,000 in 2021 to $1,215,000 in 2023. Ripple’s spending rose by 1,780%, from $50,000 in 2017 to $940,000 in 2023. Tether Operations grew its spending by 158%, from $480,000 in 2022 to $1.24 million in 2023.
From 2017 to 2023, the top five spenders on lobbying were Apollo Global Management ($28.71 million), Managed Funds Association ($21.96 million), CME Group ($10.19 million), Coinbase ($8.45 million), and Block Inc. (formerly Square Inc.) ($6.37 million).
This surge in lobbying spending comes as regulatory scrutiny and legislative efforts around digital assets increase worldwide. Major US players are heavily investing to influence policies in their favor.
The study by Social Capital Markets suggests that the crypto industry is growing more mature and financially powerful. It also shows that the industry understands the critical role of regulation in its future growth and mainstream acceptance. With the upcoming election, crypto companies will likely continue to use lobbying to protect their interests and push fo favorable policies.
