Crypto Lobbying Expenditures Surge 1386% in 7 Years
A New Study by Social Capital Markets Reveals Dramatic Increase in Lobbying Spend by Crypto Companies
A new study by Social Capital Markets has revealed a staggering 1386% increase in lobbying spend by crypto companies over the past seven years. The research shows that the industry’s lobbying expenditure has risen from $2.72 million in 2017 to $40.42 million in 2023.
Acceleration in Lobbying Efforts
The study highlights a significant acceleration in lobbying efforts, with nearly 60% of the total $131.91 million spent on crypto lobbying occurring in the last two years. In 2022 and 2023 combined, the industry allocated $78.94 million to influence policy and regulation.
Top Spending Companies
Apollo Global Management emerged as the top spender 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 stress the growing importance major players in the financial sector are placing on shaping the regulatory landscape for digital assets.
Individual Company Growth
Individual companies have reportedly shown remarkable increases in their lobbying expenditures. Coinbase, for instance, saw a 3475% rise in spending from a modest $80,000 in 2017 to $2.86 million in 2023. Notably, 74% of Coinbase’s total lobbying spending over the past seven years occurred alone in the last two years.
Other Significant Players
Other significant players have also ramped up their efforts. Binance.us increased its lobbying expenditure by 656.25%, from $160,000 in 2021 to $1,215,000 in 2023. Ripple saw a 1780% jump, from $50,000 in 2017 to $940,000 in 2023. Lastly, Tether Operations witnessed substantial growth, with a 158% increase from $480,000 in 2022 to $1.24 million in 2023.
Use of “Revolver” Lobbyists
The study also sheds light on using “revolvers” in lobbying efforts. These individuals move from the public sector to lobbying positions, leveraging their insider knowledge of government 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 seven years analyzed, 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).
Conclusion
The study by Social Capital Markets reveals a dramatic increase in lobbying spending by crypto companies, reflecting the industry’s growing maturity and financial clout. This surge in lobbying expenditures coincides with increased regulatory scrutiny and legislative efforts surrounding digital assets worldwide. The sector’s heavy investment in lobbying efforts underscores the importance it places on shaping policies favorable to its interests. With the election just around the corner, lobbying will likely remain a key strategy for crypto companies seeking to protect their interests and promote favorable policies.
FAQs
- What is the extent of the surge in crypto lobbying expenditures?
- The surge in crypto lobbying expenditures is 1386%, rising from $2.72 million in 2017 to $40.42 million in 2023.
- What is the total amount spent on crypto lobbying over the seven-year period?
- The total amount spent on crypto lobbying over the seven-year period is $131.91 million.
- Which companies emerged as top spenders in 2023?
- Apollo Global Management emerged as the top spender 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.
- What percentage of Coinbase’s total lobbying spending over the past seven years occurred in the last two years?
- 74% of Coinbase’s total lobbying spending over the past seven years occurred in the last two years.
