In a resounding testament to the growing influence of the cryptocurrency industry in the United States, data from a CoinGecko report published on November 14, 2023, reveals that the crypto sector has already spent a staggering $20.19 million on lobbying efforts in the current year, and this figure does not even include the fourth quarter. This spending surpasses the $22.2 million allocated for lobbying in the entirety of 2022, marking a historic high for the American crypto sector.
The cryptocurrency industry in the United States has been making its presence felt in the nation’s capital with remarkable financial muscle. Between 2019 and 2020, crypto companies allocated their lobbying budgets to amounts fluctuating between $2.5 million and $3 million. This figure represented less than 3% of the lobbying expenditures of Wall Street firms during the same period.
However, the tide began to change in 2021 when crypto lobbying expenses soared to $8.5 million. The momentum continued into 2022 when it reached an impressive $22 million. Now, with more than a month left in 2023, the industry has already crossed the $20 million mark. If the trend continues, this year’s spending is likely to eclipse the previous record.
Crypto lobbying vs. Wall street
The cryptocurrency sector’s lobbying efforts have not only been substantial but also significant when compared to traditional financial giants on Wall Street. In fact, crypto lobbying expenditures for 2023 have already accounted for a substantial 19.7% of the lobbying expenses of Wall Street companies. This demonstrates the crypto industry’s determination to have its voice heard in Washington, D.C.
While the crypto industry’s lobbying power is on the rise, the number of companies actively involved in these efforts has remained relatively stable. In 2023, 56 crypto companies have participated in lobbying, only slightly down from the 57 in 2022. This figure is still notably higher than previous years, with 37 companies in 2021, 17 in 2020, and 19 in 2019.
Leading the charge in lobbying spending from 2019 to 2023 is Coinbase, one of the most prominent cryptocurrency exchanges in the United States. Coinbase allocated a substantial $7.5 million towards its lobbying efforts during this period.
Following closely behind is the non-commercial organization, Blockchain Association, with $5.23 million in lobbying expenditures. Ripple, a key player in the cryptocurrency space, secured the third position with $3.46 million spent on crypto lobbying activities. Other organizations that have consistently been active in lobbying include the Chamber of Digital Commerce, the Bitcoin Association, and Anchorage Digital.
Exclusion of mixed spending
The data collected for this study excluded cases where companies allocated resources for both crypto and non-crypto issues in their lobbying efforts. Notable companies like PayPal, JP Morgan, and IBM, which are increasingly involved in the digital asset economy, were not considered in this analysis.Cointelegraph reached out to CoinGecko for further details on the methodology of the research.
The cryptocurrency industry in the United States is making its mark in Washington, D.C. with record-breaking lobbying expenditures. With more than a month remaining in 2023, the sector has already spent over $20 million, surpassing the previous year’s total.
This significant investment in lobbying showcases the industry’s commitment to shaping regulatory policies and advancing its interests in the nation’s capital. As the crypto industry continues to evolve and expand, its influence on policymaking is expected to grow even further, making it a force to be reckoned with on the political landscape.