Crypto lobbying efforts by industry firms have skyrocketed by 1,400% since 2017, driven by the push to influence US regulations of the digital asset industry.
Recent data from Social Capital Markets revealed that crypto companies spent $40.42 million on lobbying efforts in 2023 alone. With the stakes higher than ever, digital asset firms are investing millions to ensure that regulatory policies align with their interests.
Crypto Lobbying Stats. | Source: Social Capital Markets
Coinbase Among the Big Crypto Lobbying Spenders
Among the top spenders, Apollo Global Management, through its crypto arm, Apollo Crypto, invested $7.56 million in lobbying efforts last year. Similarly, Coinbase and the Managed Funds Association spent $6.97 million on crypto lobbying in 2023.
Notably, the association contributed $4.11 million, while Coinbase contributed $2.86 million. Coinbase’s lobbying activities have surged by 3,475% since 2017, signaling the exchange’s aggressive push for crypto-friendly legislation.
The Urgency to Influence Regulation
Meanwhile, almost 60% of total crypto lobbying expenditures have occurred in the last two years, showcasing the growing urgency to shape the industry’s legislation as regulation around digital assets tightens.
With increased scrutiny from US lawmakers, firms are eager to secure regulations that support innovation and protect their business models. For instance, Fairshake, a prominent crypto-focused political action committee (PAC), has also ramped up its efforts.
In early August, Fairshake announced plans to spend $25 million on TV ads to support 18 House of Representatives candidates. The PAC backs candidates who advocate for crypto-friendly policies and is funded by major crypto players like Coinbase, Ripple, and Andreessen Horowitz.
Political Influence Grows
Moreover, Fairshake’s influence has contributed to significant wins for key political figures, including House Financial Services Chair Patrick McHenry and Representatives Dusty Johnson and Josh Gottheimer. These individuals have been key in advancing crypto-related legislation in the US.
Fairshake’s support was partly responsible for Rep. John Curtis’ victory in the recent Utah primary elections. As the US presidential election looms, the cryptocurrency sector’s push to secure favorable policies is expected to intensify. More companies will ramp up their efforts to influence the direction of US crypto laws.
