A recent analysis by Social Capital Markets shows that spending on lobbying by the US cryptos has skyrocketed. The current spending towards lobbying efforts by the crypto industry increased by 1,386% over the past seven years. This growth especially in the last two years where about 60% of the total lobbying spend, or $79 million out of $132 million has been spent.
With the increasing yearnings of legislations that seek to regulate cryptocurrencies one of the most popular crypto exchange platform namely Coinbase has boosted its lobbying activities. Despite considering political lobbying expenses as questionable, in 2017, Coinbase reported only $80,000 to spend on lobbying activities In 2020, Coinbase’s expenditures in lobbying were 3,475% more significant with $2. 9 million in 2023. Fifty four percent of total business spending on SOs happened in the last two years only which reflects that the company has stepped up its lobbying efforts in the recent past.
Binance.US has also grown significantly the lobbying costs to 656. 3 million between 2021 to 2023, from 160 000 to 1 000 000 USD, respectively. 2 million. Another giant in the field, Ripple, painted an even starker picture, having its lobbying expenses rise by 1,780%, from $50,000 in the year 2017 to $940,000 this year 2023.
More activity in lobbying has come at a time when the crypto industry is under increased pressure from US regulators. The regulators have been taking active enforcement actions against many industry participants including the recent cases like Coinbase and Ripple.
Nonetheless, not only crypto-native firms engage in the lobbying process, but the leaders of the traditional financial industry as well. As described in the study, BlackRock, the global asset manager, emerged as one of the key actors that actively advocating for the approval of Bitcoin ETFs. BlackRock came up prominently by procesing approvals aimed at the January spot Bitcoin ETFs through its iShares Bitcoin Trust (IBIT).
This increased lobbying can be understood as the crypto industry’s way of preparing for even further changes in US policy over the coming years.
