According to a recent CoinGecko report, over $20 million has been spent on crypto-related lobbying in the United States this year. This figure is set to surpass last year’s record of $22 million, as the data does not include fourth quarter spending. It is expected that the total amount spent on lobbying in Washington this quarter will push the figure past $22.23 million.
The increase in crypto lobbying can be attributed to the growing adoption of the sector, leading industry-related companies to allocate bigger budgets for lobbying efforts worldwide. In fact, digital asset lobbying has outpaced similar attempts by Wall Street, with a 19.7% increase compared to last year.
Implications for the Market
Should this trend continue, analysts believe that the crypto market may exert significant influence on capital compared to Wall Street in certain areas. However, last year’s record high figures were largely due to the involvement of FTX, an exchange that faced significant challenges and controversy.
Regulatory authorities have criticized political parties for their slow response in properly regulating the market and for accepting questionable gifts from industry insiders. These criticisms highlight the need for increased transparency and accountability within the crypto sector.
Over the years, the number of companies involved in lobbying has doubled, leading to the record-breaking figures seen last year.
Lobbying History
Crypto-related lobbying can be traced back to 2019 when the industry saw a surge in institutional inflows and retail adoption in various jurisdictions. From 2019 to present, a total of $56.44 million has been spent on cryptocurrency lobbying, with 66 companies and 12 organizations participating in the process.
In 2019, the lobbying spending amounted to $2.99 million, although there was a slight drop in 2020. The bull run experienced in 2021 led to a significant increase in lobby activity, reaching $8.49 million. This trend continued into 2022, with Bitcoin surpassing $64,000 and numerous institutions showing interest in crypto after Coinbase’s public listing in 2021.
Given these findings, policy watchers emphasize the importance of involving more traditional institutions in the crypto market to expedite rule clarity in the United States and to enhance investor confidence. Notably, Coinbase leads the crypto lobbying figures with $7.5 million spent since 2019, followed by the Blockchain Association with $5.23 million, and Ripple, a blockchain payment firm, with $3.46 million.
