Crypto lobbying surges 1,400% since 2017 as industry pushes for policy change

Lobbying by crypto companies has increased by 1,386% since 2017. This increase reflects the industry’s aggressive push to create favorable regulations.

As cryptocurrencies become more integrated into the financial system, risks are becoming ever greater, driving companies to invest millions of dollars to ensure the regulatory environment aligns with their goals.

According to data from Social Capital Markets, lobbying in the crypto sector has increased by a staggering 1,386% since 2017, with major players making a concerted effort to influence U.S. policy. Reflecting the sector’s growing clout and desire for favorable regulation, crypto firms spent a record $40.42 million on lobbying in 2023 alone.

The data shows that key industry leaders emerged as the biggest lobbying spenders. Apollo Global Management, under its Apollo Crypto arm, invested $7.56 million in lobbying last year, with 78 of its 104 lobbyists using “revolvers” (individuals who move between the public and private sectors).

Another major name, the Managed Funds Association, spent $4.11 million, while cryptocurrency exchange Coinbase allocated $2.86 million to lobbying in 2023. However, since 2017, Coinbase’s lobbying activities have increased by 3,475%, highlighting the increasing pressure from regulators to create crypto-friendly legislation.

Crypto lobbying on the rise as industry regulations tighten

The sharp increase in lobbying spending reflects the industry’s race to influence U.S. legislatures as regulations around digital assets intensify. Data shows that nearly 60% of total lobbying spending over the past seven years has occurred in the past two years, suggesting an urgency for companies to protect their interests amid heightened scrutiny.

Earlier in August, crypto.news reported that Fairshake, a prominent crypto-focused super PAC, planned to invest $25 million in TV ad campaigns to support 18 House candidates from both parties. Fairshake supports candidates committed to advancing crypto-friendly legislation and encouraging innovation in the U.S. Its recent efforts include supporting House Financial Services Chairman Patrick McHenry, Rep. Dusty Johnson, and Rep. Josh Gottheimer (D-N.J.), who have been key figures in pushing crypto legislation.

The PAC is backed by major crypto companies like Coinbase, Ripple, and Andreessen Horowitz. Most recently, Fairshake helped spend more than $37 million on primary race ads and contributed to key victories, including Rep. John Curtis’ victory in Utah.