A Surge in Crypto Lobbying Expenditure
As we inch closer to the end of 2023, the U.S. crypto industry isn’t just gearing up for the holidays; it’s also spending big on lobbying. With more than a month left in the year, they’ve already shelled out a staggering $20 million. This amount eclipses last year’s total of $22.2 million, and it seems we’re on track for even more extravagant spending before we pop the champagne.
Trends and Historical Context
Historically, crypto lobbying budgets have been a rollercoaster ride. From a modest $2.5 million to $3 million between 2019 and 2020, spending took a dramatic leap to $8.5 million in 2021 and exploded to $22 million in 2022. Looking ahead, 2023’s projected spending could substantially outpace previous years, accounting for a remarkable 19.7% of Wall Street’s lobby funds.
What Changed?
It’s clear that the crypto landscape is maturing, and with it, the willingness of companies to invest in lobbying efforts. The number of firms jumping on the lobbying bandwagon has increased, with 56 companies participating this year, compared to 57 in 2022. That’s a far cry from the 37 companies involved in 2021. Talk about a growth spurt!
Big Spenders: Who’s Leading the Charge?
- Coinbase: The big winner with $7.5 million in lobbying efforts from 2019 to 2023.
- Blockchain Association: In a strong second place with $5.23 million.
- Ripple: Rounding out the top three with $3.46 million.
Other notable players like the Chamber of Digital Commerce and Bitcoin Association are also throwing their hats into the ring.
The Exclusions: What’s Left Out?
Interestingly, the figures we’re seeing exclude mixed lobbying cases from major firms such as PayPal and JP Morgan, which dabble in both crypto and traditional finance. It’s like counting calories but ignoring the dessert—that’s how they roll!
Conclusion: What Lies Ahead?
The crypto lobby is clearly ramping up its efforts, and as more money flows into this space, it will be intriguing to see how this affects regulations and the broader industry. Will that extra spending translate into favorable legislation? Or will lawmakers remain tough as nails? Only time—and perhaps a hefty lobby budget—will tell.
