Lobbying spending for the crypto industry in the United States has exploded by 1,386% since 2017, with a major increase in the last two years.
Crypto lobbying has seen a meteoric rise in recent years, with a few key firms leading efforts to influence lawmakers in the United States.
Coinbase, for example, has increased its lobbying spending by 3,475% over the past seven years, according to a September 5 report from Social Capital Markets. The crypto exchange’s spending has increased from $80,000 in 2017 to $2.86 million in 2023.
Another crypto company that has invested significant sums to influence lawmakers is Ripple Labs. Over the same period, the company saw its lobbying costs increase by 1,780%, from just $50,000 to $940,000 in 2023.
Binance US is also among the largest lobbyists in Washington, DC. The company invested $160,000 in 2017 and $1.2 million in 2023, representing a 656% increase in lobbying spending.
Stablecoin issuer Tether also spent $1.2 million on lobbying in 2023, while decentralized exchange Uniswap and fintech giant Block Inc. invested $280,000 and $1.7 million, respectively.
These companies have all faced legal battles and regulatory scrutiny in recent years. Ripple has been in a legal dispute with the U.S. Securities and Exchange Commission (SEC) since 2020 over the sale of the XRP token.
Binance US has also faced several regulatory challenges, both at the federal and state levels. The SEC sued the company in 2023, accusing it of operating as an unregistered exchange and broker-dealer. Coinbase is also in litigation with the SEC, which accuses the company of offering unregistered securities through its platform.
In the United States, lobbying is legal and protected by the Constitution. The First Amendment guarantees the right to “petition the government to remedy problems.” In other words, it allows individuals and organizations to influence decision-makers and laws.
In recent years, cryptocurrency companies lobbying in Washington have called for clearer rules to clarify the murky legal environment surrounding crypto assets, avoiding the uncertainties of a current “gray area.”
Since 2017, lobbying spending for the crypto industry in the United States has exploded by 1,386%. Nearly 60% of that $131.91 million total was spent in the last two years, or $78.94 million between 2022 and 2023.
Behind these numbers are key players investing millions of dollars to influence cryptocurrency and blockchain legislation.
Apollo Global Management tops the list, spending $7.56 million in 2023 alone and a total of $28.7 million over the past seven years. The firm is among the largest private equity funds in the United States, with a significant portfolio of investments in the blockchain sector.
The Managed Funds Association also spent $2.86 million on lobbying efforts in 2023 and a total of $21.9 million since 2017. The firm works on behalf of hedge funds and alternative investment managers to influence policy.
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