A new report from CoinGecko just showed that crypto lobbying efforts in the U.S. have gobbled up $20M thus far, with Coinbase and Ripple making headlines.
The CoinGecko data shows the crypto industry has spent a total of $56 million in lobbying efforts from 2019 to date. The spending for this year, which is likely to surpass the $23 million spent in 2022, saw participation from Coinbase, the Blockchain Association, and Ripple Labs.
‘Lobbying’ is an advocacy term that describes a situation in which an individual or a group persuades members of Parliament to support a defined policy or campaign.
With the clamor for crypto regulations growing in the past few years, injecting cash into lobbying seems right as Congressional support can help the industry achieve its goals faster.
The Crypto Lobbying Statistics
According to the data presented, a total of 78 ‘non-individual entities’ including 66 companies and 12 organizations participated in the US lobbying efforts in the past 5 years.
The effort took $2.99 million in 2019 but the spending dropped to $2.45 million in 2020, with the breakout of COVID-19 the plausible explanation for the drop.
Crypto lobbying efforts regained momentum in 2021 with $8.49 million spent. This figure skyrocketed to $22.23 million in 2022.
Per individual company participation, Coinbase has spent $7.51 million in its lobbying efforts from 2019 to date. This spending is reasonable considering its status as a publicly listed US firm with obligations to keep the company attractive for the benefit of its investors.
Masked by the SEC’s lawsuit, Coinbase needs allies and lobbying remains one of the more viable ways to achieve it.
Blockchain Association spent $5.23 million to rank in the second spot while Ripple Labs, a firm with multiple legal victories against the SEC, spent $3.46 million. According to Coingecko, the top three spenders have participated in lobbying efforts in the past 5 years.
This year, Coinbase’s spending sits at $2.16 million, closely followed by Crypto.com’s $1.535 million, Blockchain Association and Binance have spent $1.47 million and $1.19 million while Ripple Labs have spent $710,000 in its lobbying efforts thus far this year.
Other top 10 spenders include Kraken, the exchange currently facing its second SEC lawsuit, Andreessen Horowitz (a16z), Tether, Crypto Council for Innovation, and DeFi Education Fund.
Future of Crypto Lobbying Efforts
Considering how dynamic the digital currency ecosystem is, crypto lobbying efforts have come to stay. This crypto lobbying trend might persist even when the industry gets the much-needed robust regulatory clarity.
According to the Coingecko report, crypto spending this year accounts for 19.6% of Wall Street lobbying cost thus far, with projections that this rate might soar in the coming years.