The cryptocurrency industry has ramped up its lobbying efforts in Washington over the past year, with spending more than doubling from the previous year. In 2021, crypto companies spent a total of $21.55 million on lobbying in Washington, setting a new record.
This is more than double the amount spent in the previous year, highlighting the increasing importance of the industry and its desire to influence policy decisions.
Record-breaking Spending: Cryptocurrency Industry Doubles Lobbying Efforts in Washington
OpenSecrets, a corporation that tracks political contributions, has analyzed reports from over 50 participants in the cryptocurrency industry. Their findings reveal that the industry has broken records, spending a total of $21.55 million on lobbying efforts in Washington in 2022.
Lobbying is the act of influencing government decisions, particularly those made by politicians and regulators, in favor of a particular interest group or company. In this case, the cryptocurrency industry is making a concerted effort to shape policy decisions in its favor.
The cryptocurrency industry broke its own lobbying spending record in Washington last year, with the total amount spent surpassing $8.29 million, which was invested in 2021 by more than double. The surge in spending indicates that the sector is seeking to gain more influence and support in Washington, especially in light of increasing regulatory scrutiny and negative public perception of cryptocurrencies. As such, the industry is using lobbying as a means to shape public policy decisions in their favor.
Cryptocurrency Industry Doubles Down on Washington Influence
The cryptocurrency sector experienced a tumultuous year, marked by a series of high-profile failures. These included the algorithmic stablecoin launched by Terra, the collapse of FTX crypto exchange, and most recently, the fall of the crypto lending startup Genesis. Notably, during this period, the industry broke its own lobbying spending record.
According to data from OpenSecrets, Coinbase emerged as the biggest spender on lobbying in 2022 among companies that sought to influence Washington on issues related to cryptocurrencies. This indicates that the company is actively seeking to shape policy decisions in its favor, in response to increasing regulatory scrutiny and unfavorable public opinion of cryptocurrencies.
According to the report, Coinbase topped the list of companies that spent the most on lobbying in 2022, paying over $3.4 million. Following closely behind were Blockchain Association, Crypto.com, Binance Holdings, and Ripple, with each contributing approximately $1.9 million, $1.2 million, $1.1 million, and $1 million, respectively.
It is worth noting that campaign contributions, election funding, or political donations are not classified as lobbying expenses, even if they are used by donors to establish relationships with lawmakers. Therefore, the figures mentioned in the report represent only direct payments made to lobbyists or lobbying firms to influence policy decisions in favor of the cryptocurrency industry.
Expenditures of Leading Technology and E-commerce Corporations
While the cryptocurrency industry has increased its lobbying expenditures, it still falls significantly short of leading technology and e-commerce corporations. However, trade groups and private businesses within the industry have boosted their lobbying spending in recent years.
For instance, OpenSecrets, a research organization that monitors the influence of money in American politics, found that Amazon and its affiliates spent $21.38 million on lobbying in 2022. Likewise, Alphabet spent over $13 million on lobbying efforts last year.
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