Crypto Lobbying Increases 1400% Since 2017: Data Shows

crypto adoption Cryptocurrency

Author

Jimmy Aki

Author

Jimmy Aki

About Author

Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

Author Profile

Share

Copied

Last updated: 

September 5, 2024

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Crypto lobbying efforts have seen a remarkable surge as companies seek to influence policies shaping digital assets’ future.

The rise highlights the growing importance of lobbying as crypto becomes more integrated into mainstream finance.

The Evolution of Crypto Lobbying

According to a recent study by Social Capital Markets, crypto lobbying has increased by nearly 1,400% since 2017. The study reveals that crypto companies spent $40.42 million in 2023 alone, up from $2.72 million in 2017, with 60% of the total expenditure occurring in the last two years.

Lobbying, often misunderstood as bribery, is critical in shaping public policy by enabling industries to communicate their interests to lawmakers.

Lobbying is a constitutionally protected practice in the U.S. and has become a central tool for the crypto sector.

With regulatory scrutiny mounting, crypto companies invest heavily to ensure new policies align with their objectives.

Since 2017, the industry has spent $131.91 million on lobbying, with $78.94 million allocated in 2022 and 2023 alone.

The influx of funds is a response to increasing regulatory pressures, especially in key markets like the U.S., where lawmakers are debating the best approach to regulate digital assets.

Apollo Global Management is leading the charge in lobbying expenditures, having invested $7.56 million in 2023 under its Apollo Crypto arm.

The Managed Funds Association followed with $4.11 million, while Coinbase, a prominent crypto exchange, spent $2.86 million in the same year.

Coinbase’s investment witnessed a 3,475% surge since 2017, reflecting the exchange’s growing efforts to influence favorable crypto legislation.

Other important contributors include Binance.US, which increased its lobbying budget by 656% between 2021 and 2023, and Ripple, with a staggering 1780% rise from $50,000 in 2017 to $940,000 in 2023.

Tether Operations, a key player in the stablecoin space, also increased its lobbying expenditures by 158% over the past year.

The Role of Revolvers in Lobbying And Legislative Action Driving Its Adoption

The study also emphasizes using “revolvers” — individuals transitioning from government roles to private-sector lobbying positions.

These revolvers leverage insider knowledge of governmental processes to help employers navigate complex regulatory landscapes.

For example, Apollo Global Management employed 104 lobbyists in 2023, 78 of whom were revolvers.

Similarly, Coinbase relied on 39 lobbyists, 32 of them were revolvers. The prevalence of revolvers illustrates how crypto firms deepen their ties to policymakers.

As governments worldwide move toward tighter regulations, the surge in lobbying is a natural response to protect the industry’s interests.

Notably, the top five lobbying spenders since 2017, Apollo Global Management ($28.71 million), Managed Funds Association ($21.96 million), CME Group ($10.19 million), Coinbase ($8.45 million), and Block Inc. ($6.37 million), have emerged as key influencers in shaping crypto-related policies.

A prime example of crypto lobbying efforts is one exemplified by Fairshake, a crypto-focused super PAC.

On August 7, Fairshake announced plans to spend $25 million on TV ads supporting pro-crypto candidates in the U.S. House of Representatives.

Backed by industry giants like Coinbase and Ripple, the PAC seeks to advance crypto-friendly legislation, with recent campaigns contributing to notable victories like Rep. John Curtis’s win in Utah.