Crypto lobbying has skyrocketed over the past few years, with a handful of key companies driving advocacy efforts to influence legislators in the United States.
Coinbase, for instance, has increased its lobbying expenditure by 3,475% over the past seven years, according to a Social Capital Markets report on Sept. 5. The crypto exchange’s spend increased from $80,000 in 2017 to $2.86 million in 2023.
Another crypto firm pouring large sums of money into influencing legislators was Ripple Labs. Over the same period, the firm saw a 1,780% increase in lobbying costs, from merely $50,000 to $940,000 in 2023.
Binance.US is also among the biggest players lobbying in Washington, DC. The firm invested $160,000 in 2017 and $1.2 million in 2023, representing an increase of 656% in lobbying expenses.
In addition, stablecoin issuer Tether spent $1.2 million lobbying in 2023, while decentralized exchange Uniswap and fintech giant Block Inc. poured in $280,000 and $1.7 million, respectively.
Lobbying expenditure trend since 2017. Source: Social Capital Markets
These companies have all faced legal battles and regulatory scrutiny over the past few years. Ripple has been in a legal battle with the US 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 filed a lawsuit against the company in 2023, accusing Binance.US of operating as an unregistered exchange and broker. Coinbase is also embroiled in a legal dispute with the SEC, which accuses the company of offering unregistered securities through its platform.
Lobbying is allowed in the United States and protected under the country’s Constitution. Specifically, the First Amendment protects the right “to petition the government for a redress of grievances.” In other words, this ensures that individuals and organizations have the right to influence public officials and legislation.
Over the past few years, crypto firms lobbying in Washington have been advocating for clearer regulatory frameworks to replace the ambiguous legal environment for digital assets firms, moving away from the uncertainties of a current “gray zone.”
Lobbing giants
Since 2017, crypto lobbying expenditures in the US have surged by 1,386%. Nearly 60% of this $131.91 million total was spent just the last two years, amounting to $78.94 million between 2022 and 2023.
Behind the figures are key players driving millions of dollars to influence crypto and blockchain legislation.
Apollo Global Management heads the list, spending $7.56 million in 2023 alone and a total of $28.7 million over the past seven years. The company is among the biggest private equity firms in the United States, with a reported large portfolio of investments in the blockchain space.
Managed Funds Association also spent $2.86 million in 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 policies.
Cointelegraph contacted Binance.US, Coinbase, Tether and Ripple Labs for comment but did not receive a response by the time of publication.
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