According to a new study from Social Capital Markets, crypto lobbying spending has increased dramatically over the past seven years.
The study shows a staggering 1,386% increase in crypto firms’ lobbying spend, from $2.72 million in 2017 to $40.42 million in 2023.
The research indicates a significant acceleration in lobbying efforts, with nearly 60% of the total $131.91 million spent on crypto lobbying over the past two years. In 2022 and 2023 combined, the industry allocated $78.94 million to influence policy and regulations.
Apollo Global Management emerged as the largest issuer in 2023, investing $7.56 million in crypto lobbying. This was followed by the Managed Funds Association at $4.11 million and Coinbase at $2.86 million. These figures highlight the increasing importance that major players in the financial sector are placing on shaping the regulatory landscape for digital assets.
Individual companies have reportedly shown notable increases in their lobbying expenditures. Coinbase, for example, saw a 3.475% increase in spending, from a modest $80,000 in 2017 to $2.86 million in 2023. Notably, 74% of Coinbase’s total lobbying spend over the past seven years occurred in the past two years alone .
Other key players have also stepped up their efforts. Binance.us increased its lobbying spend by 656.25%, from $160,000 in 2021 to $1,215,000 in 2023. Ripple saw a jump of 1780%, from $50,000 in 2017 to $940,000 in 2023. Finally, Tether Operations witnessed substantial growth , increasing 158% from $480,000 in 2022 to $1.24 million in 2023.
The study also sheds light on the use of ‘revolvers’ in lobbying activities. These individuals move from the public sector into lobbying positions, using their inside knowledge of government operations. For example, Apollo Global Management employed 104 lobbyists in 2023, 78 of whom were revolvers. Similarly, Coinbase used 39 lobbyists, 32 of whom were revolvers.
In the seven years analyzed, 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).
This increase in lobbying spending coincides with increased regulatory scrutiny and legislative efforts around digital assets worldwide. Major players in the US are now clearly investing heavily in efforts to shape policies favorable to their interests.
The Social Capital Markets research suggests a dramatic increase in lobbying spending, reflecting the growing maturity and financial strength of the crypto industry. It also indicates that the industry recognizes the crucial role that regulation will play in its future development and mainstream adoption. With elections just around the corner, lobbying will likely remain an important strategy for crypto companies looking to protect their interests and promote favorable policies.