In recent years, there has been a significant surge in lobbying expenditures within the crypto industry. A new study by Social Capital Markets has revealed a staggering 1,386% increase in lobbying spend by crypto companies, rising from $2.72 million in 2017 to $40.42 million in 2023. This increase highlights 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.
Apollo Global Management emerged as the top spender in 2023, investing $7.56 million in crypto lobbying. This was followed by the Managed Funds Association at $4.11 million and Coinbase at $2.86 million. These figures underscore the growing 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 remarkable increases in their lobbying expenditures. Coinbase, for instance, saw a 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 over the past seven years occurred in the last two years alone. Other significant players such as Binance.us, Ripple, and Tether Operations have also ramped up their efforts, with substantial increases in lobbying expenditure.
The study also sheds light on the use of “revolvers” in lobbying efforts. These individuals move 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, of which 32 were revolvers. This strategic approach to lobbying has proven to be effective in influencing policy and regulation.
The surge in lobbying expenditures within the crypto industry coincides with increased regulatory scrutiny and legislative efforts surrounding digital assets worldwide. Major players in the US are now clearly investing heavily in efforts to shape policies favorable to their interests. This trend reflects the industry’s growing maturity and financial clout, as well as its recognition of the critical role that regulation will play in its future development and mainstream adoption.
With the upcoming election on the horizon, lobbying is likely to remain a key strategy for crypto companies seeking to protect their interests and promote favorable policies. The growing trend of increased lobbying expenditures within the crypto industry emphasizes the importance of effective advocacy and engagement with policymakers to ensure a regulatory environment that supports innovation and growth in the sector.
The rise in lobbying efforts within the crypto industry is a clear indication of the sector’s increasing influence and significance in shaping policy and regulation. As the industry continues to evolve, lobbying will remain a crucial tool for companies to navigate the complex regulatory landscape and advocate for policies that support their interests and promote growth.