The landscape of lobbying within the crypto industry has seen a significant surge in expenditures over the past seven years, as indicated by a recent study conducted by Social Capital Markets. The study demonstrates a massive 1,386% increase in lobbying spend by crypto companies, skyrocketing from $2.72 million in 2017 to an astonishing $40.42 million in 2023. This growth highlights a notable acceleration in lobbying efforts, with close to 60% of the total $131.91 million spent on crypto lobbying taking place in just the last two years.
The study delves into the key players in the industry and their respective investments in lobbying activities. In 2023, Apollo Global Management emerged as the top spender, allocating $7.56 million towards crypto lobbying. Following closely behind were the Managed Funds Association with $4.11 million and Coinbase with $2.86 million in expenditures. These figures underscore the increasing emphasis that major financial sector players are placing on shaping regulations related to digital assets.
Individual companies within the crypto industry have also shown remarkable increases in their lobbying expenditures over the years. For example, Coinbase experienced a substantial 3,475% rise in spending, soaring from a mere $80,000 in 2017 to $2.86 million in 2023. Incredibly, 74% of Coinbase’s total lobbying expenses occurred within the last two years alone. Other significant players such as Binance.us, Ripple, and Tether Operations have also significantly ramped up their lobbying efforts, with percentage increases ranging from 158% to 1780%.
The study sheds light on the strategic use of “revolvers” in lobbying efforts within the crypto industry. These individuals leverage their insider knowledge of government operations, often transitioning from the public sector to lobbying positions. For instance, Apollo Global Management employed 104 lobbyists in 2023, with a significant portion of them being revolvers. Similarly, Coinbase utilized 39 lobbyists, a majority of which were also identified as revolvers.
The surge in lobbying expenditures within the crypto industry coincides with a period of increased regulatory scrutiny and legislative efforts concerning digital assets globally. Major players in the United States are clearly demonstrating a substantial investment in shaping policies that align with their interests. The study suggests that this surge in lobbying spending reflects the industry’s growing maturity, financial influence, and its recognition of the pivotal role that regulation will play in future development and mainstream adoption.
As the industry continues to evolve and with elections on the horizon, lobbying is poised to remain a critical strategy for crypto companies looking to safeguard their interests and advocate for favorable policies. The increasing investments in lobbying activities underscore the industry’s commitment to influencing regulatory frameworks and ensuring a conducive environment for growth and innovation.