The cryptocurrency industry often faces significant hostility from regulators and the public, but it spends huge sums defending itself. This is the conclusion of a report from Crypto Head, which shows that the ecosystem has doubled its lobbying efforts since last year. Decryption.
Cryptolobbying: when the ecosystem pays to convince the government
The report focuses on the United States, where lobbying is legal, although it is regularly criticized. As the report points out, lobbying is an almost mandatory step for new industries to educate policy makers. This is what the crypto ecosystem started doing, whose efforts accelerated last year.
As proof is this ranking of crypto companies that spent the most on lobbying last year. Robinhood, Ripple Labs (XRP) and Coinbase is at the top of the ranking:
Figure 1: Crypto business lobbying expenses
The amounts are significant. The Robinhood investment platform exceeded $1.3 million in 2021, and Ripple Labs is also approaching the million mark. The report also notes the number of lobbyists employed by these companies. Coinbase recruited 23 compared to 12 for Ripple Labs and 3 for Robinhood.
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Since 2017, lobbying by crypto companies has skyrocketed. Five years ago they were only $200,000. But in 2021 these are almost 5 million dollars which was used in total:
Figure 2: Expenditure growth since 2017
Leaving aside the difficult question of the need for lobbying, these figures prove that the ecosystem has evolved a lot over the past five years. Substantial funds is now set up to influence decision makers – who remain globally uneducated when it comes to cryptocurrencies.
Over five years, $9.5 million was spent of companies for lobbying actions with the US government. We do not have figures for other regions of the world, for example Europe, but we can safely assess that similar initiatives are on the way with the EU.
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Source data and graphs: Crypto Head
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