The landscape of lobbying in the crypto industry has seen a significant shift over the past seven years, as highlighted by a recent study conducted by Social Capital Markets. The study reveals an astonishing 1,386% increase in lobbying expenditures by crypto companies, soaring from $2.72 million in 2017 to a staggering $40.42 million in 2023. This surge in lobbying efforts demonstrates the growing importance that major players in the financial sector are placing on influencing policy and regulation in the digital asset space.
In 2023, Apollo Global Management emerged as the top spender, allocating $7.56 million towards crypto lobbying. This was closely followed by the Managed Funds Association at $4.11 million and Coinbase at $2.86 million. The significant rise in lobbying spending by individual companies is worth noting, with Coinbase witnessing a remarkable 3,475% increase from a modest $80,000 in 2017 to $2.86 million in 2023. Notably, a substantial portion of Coinbase’s total lobbying expenditure occurred in just the last two years, indicating an accelerated focus on shaping regulatory policies.
Several other key players in the crypto industry have also ramped up their lobbying efforts. Binance.us increased its lobbying spending by 656.25%, from $160,000 in 2021 to $1,215,000 in 2023. Ripple saw a significant 1780% jump, from $50,000 in 2017 to $940,000 in 2023. Additionally, Tether Operations experienced substantial growth, with a 158% increase from $480,000 in 2022 to $1.24 million in 2023. These escalations in lobbying expenditures reflect the industry’s proactive approach towards influencing policy decisions in their favor.
The study also sheds light on the utilization of “revolvers” in lobbying campaigns. These individuals leverage their insider knowledge of government operations, having previously worked in the public sector, to influence policy-making. For instance, Apollo Global Management employed 104 lobbyists in 2023, with 78 of them identified as revolvers. Similarly, Coinbase utilized 39 lobbyists, 32 of whom were classified as revolvers. This strategic use of individuals with government experience underscores the sophisticated tactics employed by crypto companies to advance their lobbying objectives.
The surge in lobbying expenditures within the crypto industry aligns with the heightened regulatory scrutiny and legislative efforts surrounding digital assets on a global scale. Major players in the US are clearly intensifying their lobbying efforts to shape policies that are conducive to their interests. The study by Social Capital Markets indicates a significant uptick in lobbying spending, underscoring the industry’s maturation and financial influence. It also signifies the sector’s acknowledgment of the pivotal role that regulations will play in its future development and broader adoption. With the upcoming election, lobbying is poised to remain a crucial strategy for crypto companies aiming to safeguard their interests and advocate for favorable regulatory frameworks.
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