As we approach the end of 2023, the United States crypto industry is making headlines not just for its impressive growth but also for its substantial lobbying efforts. In a year that has witnessed remarkable developments in the world of cryptocurrency, the industry's commitment to advocating for its interests within the corridors of power is more evident than ever. In this article, we delve into the surge in crypto lobby spending, surpassing last year's records and making a significant impact on the nation's political landscape.
Breaking Records: $20 Million and Counting
With over a month remaining before we bid farewell to 2023, the U.S. crypto industry has already allocated a staggering $20 million towards lobbying. To put this into perspective, the total sum for the previous year stood at $22.2 million. The surge in lobby spending this year is nothing short of impressive and signifies the industry's determination to shape policies and regulations in its favor.
A CoinGecko Report Unveils the Numbers
A recent report by CoinGecko, published on November 14, sheds light on the substantial crypto lobby spending in the United States. According to the report, the U.S. crypto lobby has invested $20.19 million in 2023 alone, and this figure doesn't even include the numbers for the fourth quarter. This means that the total lobby spending for this year is poised to surpass the previous year's record, marking a historic achievement for the American crypto sector.
From Margins to Mainstream: The Lobbying Evolution
The journey of crypto lobbying in the United States has been nothing short of remarkable. Between 2019 and 2020, the total lobbying budget for crypto companies ranged from $2.5 million to $3 million, making up less than 3% of Wall Street's lobbying expenditures. Fast forward to 2021, and this number surged to $8.5 million. In 2022, it reached an impressive $22 million. As of now, crypto lobby spending accounts for 19.7% of Wall Street's lobbying efforts.
Steady Participation: The Key Players
While the numbers have surged, the number of companies actively involved in lobby spending hasn't seen significant changes compared to the previous year. In 2023, there are 56 crypto companies participating in lobby efforts, only slightly less than the 57 in 2022. However, this figure is significantly higher than in 2021 (37 companies), 2020 (17), or 2019 (19).
- Coinbase: The leader in spending efforts for the years 2019 to 2023, with a total expenditure of $7.5 million.
- Blockchain Association: The non-commercial entity takes the second spot with $5.23 million in lobbying spending.
- Ripple: Claiming the third place with $3.46 million allocated to crypto lobbying.
- Consistent Contributors: Organizations like the Chamber of Digital Commerce, the Bitcoin Association, and Anchorage Digital have consistently participated in crypto lobby efforts.
Inclusivity and Exclusions
It's important to note that the study's data set excluded cases of mixed spending, where companies allocated resources to both crypto and non-crypto issues. Companies like PayPal, JP Morgan, and IBM, now involved in the digital asset economy, have their lobbying efforts in the broader spectrum and were not included in this crypto-specific analysis.
The surge in crypto lobby spending in the United States paints a vivid picture of an industry that has transitioned from the fringes to the forefront of political discourse. With record-breaking numbers, a steady roster of active participants, and key players leading the charge, crypto lobbying has become an integral part of shaping the regulatory landscape. As we move into 2024, it remains to be seen how these efforts will influence policies and regulations surrounding the ever-evolving world of cryptocurrency.
In a world where digital currencies are becoming increasingly mainstream, crypto lobby spending is a reflection of the industry's commitment to securing its future and ensuring that it continues to thrive in the years to come.