The latest study conducted by Social Capital Markets has unveiled a significant surge in lobbying expenditures within the crypto industry over the past seven years. The data reveals a staggering 1,386% increase in lobbying spend by crypto companies, soaring from $2.72 million in 2017 to an astonishing $40.42 million in 2023. This surge highlights a rapid acceleration in lobbying efforts, with almost 60% of the total $131.91 million spent on crypto lobbying occurring in the last two years. In the years 2022 and 2023 combined, the industry directed a substantial $78.94 million towards influencing policy and regulation.
Standing out as the top spender in 2023, Apollo Global Management significantly invested $7.56 million in crypto lobbying efforts. Following closely behind were the Managed Funds Association at $4.11 million and Coinbase at $2.86 million. These figures underscore the growing emphasis that major players in the financial sector are placing on molding the regulatory environment for digital assets. Noteworthy is the remarkable escalation in lobbying expenditures by individual companies. For instance, Coinbase witnessed a massive 3,475% surge in spending, skyrocketing from a mere $80,000 in 2017 to $2.86 million in 2023. Particularly striking is the fact that 74% of Coinbase’s total lobbying spending over the past seven years took place solely in the last two years.
In addition to Coinbase, other significant players in the crypto space have also significantly ramped up their lobbying efforts. Binance.us saw a substantial 656.25% increase in lobbying expenditure, climbing from $160,000 in 2021 to $1,215,000 in 2023. Ripple experienced a noteworthy 1,780% jump, from $50,000 in 2017 to $940,000 in 2023. Furthermore, Tether Operations observed a considerable growth rate, with a 158% surge from $480,000 in 2022 to $1.24 million in 2023.
The study also sheds light on the use of “revolvers” in lobbying efforts, where individuals transition from the public sector to lobbying roles, leveraging their insider knowledge of governmental 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. Over the course of the analysis, the top five lobbying spenders were Apollo Global Management ($28.71 million), Managed Funds Association ($21.96 million), CME Group ($10.19 million), Coinbase ($8.45 million), and Block Inc (formerly Square Inc) ($6.37 million).
The surge in lobbying expenditures coincides with heightened regulatory scrutiny and legislative initiatives surrounding digital assets on a global scale. Major players in the US are evidently making substantial investments in efforts to shape policies that align with their interests. The study conducted by Social Capital Markets indicates a substantial increase in lobbying spending, reflecting the maturation and financial influence of the crypto industry. It also signifies the sector’s acknowledgment of the pivotal role that regulation will play in its future growth and widespread adoption. With the upcoming election on the horizon, lobbying is poised to remain a pivotal strategy for crypto companies looking to safeguard their interests and advocate for favorable policies.
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