Lobbying activities by cryptocurrency firms have surged an astonishing 1,386% since 2017, underscoring the industry’s intensified efforts to influence regulatory frameworks. As cryptocurrencies become increasingly integrated into the financial system, companies are investing significant resources to ensure that regulations align with their interests.
Data from Social Capital Markets reveals that cryptocurrency firms allocated a record $40.42 million to lobbying efforts in 2023, marking a dramatic increase in industry spending. This surge reflects the growing influence of the sector and its strategic push for favorable regulatory conditions.
Key players in the industry have emerged as major spenders. Apollo Global Management, through its Apollo Crypto division, spent $7.56 million on lobbying last year, employing 104 lobbyists, including 78 who frequently transition between public and private sectors. The Managed Funds Association also made a substantial contribution, investing $4.11 million. Meanwhile, Coinbase, a leading crypto exchange, increased its lobbying expenditure by 3,475% since 2017, spending $2.86 million in 2023 alone.
This sharp rise in lobbying expenditures highlights the crypto industry’s urgent push to influence U.S. lawmakers amidst growing regulatory scrutiny. Nearly 60% of the total lobbying spending over the past seven years has occurred in the last two years, reflecting the industry’s heightened focus on shaping legislation.
In a notable development, Fairshake, a prominent crypto-focused super PAC, announced plans to invest $25 million in TV advertising to support 18 House of Representatives candidates from both major parties. Fairshake is dedicated to endorsing candidates who support crypto-friendly legislation and innovation in the U.S. Recent endorsements include House Financial Services Chair Patrick McHenry, Rep. Dusty Johnson, and Rep. Josh Gottheimer (D-N.J.), all of whom are influential in advancing crypto legislation.
Backed by major crypto firms such as Coinbase, Ripple, and Andreessen Horowitz, Fairshake has already contributed over $37 million to primary race advertisements, playing a role in significant electoral victories, including Rep. John Curtis’s recent win in Utah.
The sharp increase in lobbying activity underscores the cryptocurrency sector’s strategic maneuvering to secure regulatory advantages as the landscape for digital assets continues to evolve.
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