These crypto companies that spend millions on lobbying

The cryptocurrency industry often faces marked hostility from regulators and the public, yet it spends vast sums to defend itself. This is the conclusion of a report by Crypto Head, which shows that the ecosystem has doubled its lobbying efforts since last year. Decryption.

Crypto lobbying: when the ecosystem pays to convince the government

The report focuses on the United States, where lobbying is legal, though regularly criticized. As the report points out, lobbying is an almost obligatory step for new industries, in order to educate political decision-makers. This is what the crypto ecosystem started doing, whose efforts accelerated last year.

As proof, this ranking of crypto companies that spent the most on lobbying last year. Robinhood, Ripple Labs (XRP) and Coinbase are at the top of the ranking:

Figure 1: Crypto business lobbying spend

The sums are substantial. The Robinhood Investment Platform exceeded $1.3 million in 2021, and Ripple Labs is also approaching the million-dollar threshold. The report also notes the number of lobbyists hired by these companies. Coinbase recruited 23, compared to 12 for Ripple Labs and 3 for Robinhood.

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Skyrocketing expenses

Since 2017, lobbying spending by crypto companies has skyrocketed. Five years ago, they were only $200,000. But in 2021, these are nearly $5 million which were spent in total:

Evolution of lobbying spending on crypto companies

Figure 2: expenditure growth since 2017

If we leave aside the thorny question of the need for lobbying, we see that these figures prove that the ecosystem has evolved a lot over the past five years. Substantial means are now set up to influence decision-makers – who remain globally uneducated when it comes to cryptocurrencies.

Over five years, $9.5 million was spent by 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 estimate that similar initiatives are underway with the European Union.

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Source data and graphs: Crypto Head

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