Crypto lobbying efforts have seen a remarkable surge as companies seek to influence policies shaping digital assets’ future.
The rise highlights the growing importance of lobbying as crypto becomes more integrated into mainstream finance.
The Evolution of Crypto Lobbying
According to a recent study by Social Capital Markets, crypto lobbying has increased by nearly 1,400% since 2017. The study reveals that crypto companies spent $40.42 million in 2023 alone, up from $2.72 million in 2017, with 60% of the total expenditure occurring in the last two years.
Lobbying, often misunderstood as bribery, is critical in shaping public policy by enabling industries to communicate their interests to lawmakers.
Lobbying is a constitutionally protected practice in the U.S. and has become a central tool for the crypto sector.
With regulatory scrutiny mounting, crypto companies invest heavily to ensure new policies align with their objectives.
Since 2017, the industry has spent $131.91 million on lobbying, with $78.94 million allocated in 2022 and 2023 alone.
The influx of funds is a response to increasing regulatory pressures, especially in key markets like the U.S., where lawmakers are debating the best approach to regulate digital assets.
Apollo Global Management is leading the charge in lobbying expenditures, having invested $7.56 million in 2023 under its Apollo Crypto arm.
The Managed Funds Association followed with $4.11 million, while Coinbase, a prominent crypto exchange, spent $2.86 million in the same year.
Coinbase’s investment witnessed a 3,475% surge since 2017, reflecting the exchange’s growing efforts to influence favorable crypto legislation.
Other important contributors include Binance.US, which increased its lobbying budget by 656% between 2021 and 2023, and Ripple, with a staggering 1780% rise from $50,000 in 2017 to $940,000 in 2023.
Ripple and coinbase were the only ones that spent money on lobbying efforts.
— crypto.Darren🪝 🏴☠️ (@Fame21Moore) August 8, 2021
Tether Operations, a key player in the stablecoin space, also increased its lobbying expenditures by 158% over the past year.
The Role of Revolvers in Lobbying And Legislative Action Driving Its Adoption
The study also emphasizes using “revolvers” — individuals transitioning from government roles to private-sector lobbying positions.
These revolvers leverage insider knowledge of governmental processes to help employers navigate complex regulatory landscapes.
More than 4 out of every 5 Pfizer lobbyists are "revolvers," or individuals who used to oversee the company they now work for.
A Swamp of open corruptionhttps://t.co/bmo3GqNmxq pic. .com/F0sA4hklq4
— Jordan Schachtel @ dossier.today (@JordanSchachtel) June 16, 2022
For example, Apollo Global Management employed 104 lobbyists in 2023, 78 of whom were revolvers.
Similarly, Coinbase relied on 39 lobbyists, 32 of them were revolvers. The prevalence of revolvers illustrates how crypto firms deepen their ties to policymakers.
As governments worldwide move toward tighter regulations, the surge in lobbying is a natural response to protect the industry’s interests.
Notably, the top five lobbying spenders since 2017, Apollo Global Management ($28.71 million), Managed Funds Association ($21.96 million), CME Group ($10.19 million), Coinbase ($8.45 million), and Block Inc. ($6.37 million), have emerged as key influencers in shaping crypto-related policies.
A prime example of crypto lobbying efforts is one exemplified by Fairshake, a crypto-focused super PAC.
On August 7, Fairshake announced plans to spend $25 million on TV ads supporting pro-crypto candidates in the U.S. House of Representatives.
Backed by industry giants like Coinbase and Ripple, the PAC seeks to advance crypto-friendly legislation, with recent campaigns contributing to notable victories like Rep. John Curtis’s win in Utah.