- Crypto companies spent roughly $12.1 million in just the first half of 2022.
- Nearly 78 crypto companies and organizations in the US have had a hand in crypto lobbying.
- So far, crypto companies have spent $20.19 million in 2023.
Congress is inclined to have more jurisdiction over the crypto industry, reduce crypto’s use in criminal activities like fraud and money laundering, and have proper definitions for these digital assets. However, some of their discussions and proposals clash with the crypto community business goals, pushing crypto companies to indulge in lobbying.
According to fininterest.com, crypto lobbying has been on the rise until the recent decline in 2023, with lobbyists seeing a $2 million decline from last year.
The site’s financial analyst, Nellius Mukuhi, comments:
The current lobbying expenditure may change dramatically as quarter four results are yet to be seen. The $2 million deficit may increase or be eliminated in the coming months. Crypto companies will have to take a stand and see what they are willing to spend to push specific regulations and secure their future.
Fininterest crypto analyst, Nellius Mukuhi
Overall Statistics on Crypto Lobbying
With the current crackdown on the crypto industry on a roll, it’s only understandable that crypto companies result in lobbying. So far, crypto companies in the US have spent nearly $ 57 million on lobbying alone since 2019. The lowest amount contributed was in 2020 at $ 2.54 million, before rising to $ 8.49 million in 2021. Key players in 2021 include Robinson, which spent nearly $1.35 million, putting it well ahead of Ripple Lab’s price of $900,000 and Coinbase’s Lobbying Expenditure of $785,000.
And while the crypto lobbying expenditure was incredible in 2021, 2022 saw record-breaking spending. Its spending represents an increase of more than twice the roughly $8.3 million in 2021 and over eight times the $2.5 million in 2020
The highest crypto spending in 2022 came from Coinbase, which spent about $3.4million. Not to mention, over 57 crypto companies from 2021’s 37 entities participated in the lobbying. New companies like Crypto.com, Taxbit, and Kraken joined the list of crypto spenders and made it to the top 15 contributors that year.
2023 was also off to a great start, with crypto companies spending about $13million in the first six months. Coinbase, of course, is leading the charge after spending $1.4 million in the same period. However, crypto companies will have to step up and pay more later this year.
Why is Crypto Lobbying Likely To Increase?
The SEC has shown immense interest in pushing specific regulations on crypto trading. This regulatory commission is determined to increase scrutiny around the crypto community and influence the crypto industry.
Currently, the SEC is on a roll and wants crypto companies to have clear definitions; if their proposals go through, crypto will be considered securities rather than commodities, and crypto companies will be registered under strict supervision. As a result, crypto companies are shelling out their money for lobbying.
Then again, about 38% of Congress currently concur that crypto will be here to stay, while 31% believe that crypto will dissipate and fall while the rest still need to decide about the overall future of crypto. These results show the profound variations that have torn up the industry and Congress. The uncertainty among lawmakers will drive crypto companies to continue lobbying and ultimately see some of them support crypto trading.
Crypto companies still have to continue lobbying to stand a chance to make regulations that support their trading while still providing a safe environment for people to trade in. The decline in 2023 expenditure should act as a wake-up call for these crypto companies to step up, as their future may be blurry.
