Crypto Industry Increases Lobbying Efforts During Crypto Winter
The crypto industry has been ramping up its lobbying efforts in recent years, particularly during the crypto winter that began in 2021. A new study published by the Money Mongers on February 23, 2023, sheds light on the increasing amount of money spent on lobbying by market participants in the United States.
According to the study, which analyzed data from OpenSecrets, a nonpartisan nonprofit organization that tracks lobbying expenses in the U.S., the crypto industry's lobbying budgets increased by 922% over the past five years. In 2017, when Bitcoin's price soared for the first time, the industry spent only $2.5 million on lobbying efforts. Last year, that number jumped to $25.57 million, and in 2021 alone, stakeholders raised their expenses by 121.41% to $11.54 million.
The study also found that the U.S.-based crypto exchange Coinbase was the largest spender, paying $3.3 million to 32 lobbyists in 2022. The Blockchain Association ranked second, with 18 lobbyists and $1.9 million spent, while Robinhood ranked third with 20 lobbyists and $1.84 million spent. Binance.US, the American subsidiary of the world's largest crypto exchange, occupied only the ninth spot on the list with $960,000 spent in 2022.
Despite the increase in lobbying efforts, the overall expenditure of crypto companies on lobbying in America is modest compared to other industries. The pharmaceutical industry, for example, spent over $350 million in 2022 on federal lobbying efforts.
It's worth noting that lobbying is an important aspect of any industry, as it allows stakeholders to advocate for policies that support their interests. In the case of the crypto industry, lobbying efforts may help shape regulations and laws that facilitate the growth and adoption of cryptocurrencies. It's also worth noting that the increase in lobbying efforts may reflect the industry's growing maturity and willingness to engage with policymakers.
Overall, the Money Mongers study highlights the increasing importance of lobbying in the crypto industry, particularly in the United States. As the industry continues to mature and grow, we can expect to see more lobbying efforts aimed at shaping regulations and laws that support its development.