In 2023, US cryptocurrency lobbying spending reaches 20% of traditional financial institutions

CoinGecko has compiled lobbying information for the cryptocurrency industry, revealing that lobbying spending in the crypto sector has surged to $20 million in the past two years, accounting for about 20% of traditional finance lobbying. Additionally, there has been an influx of new institutions entering the space, indicating the impact of U.S. regulatory policies.

Summary of Cryptocurrency Industry Lobbying Records in the Past Five Years

CoinGecko investigated lobbying data of cryptocurrency industry operators in the United States from 2019 to November 13, 2023, and found that lobbying expenditures have been increasing annually, with a potential to break records again this year.

Cryptocurrency Industry Lobbying at $56 Million in the U.S.

From 2019 to November 2023, the total lobbying expenses of the cryptocurrency industry in the United States amounted to $56.32 million, with the participation of 66 companies and 12 organizations.

Lobbying Expenditures on the Rise Year by Year

Lobbying expenditures related to cryptocurrencies have increased from $2.99 million in 2019 to $22.23 million in 2022. As of November 13th this year, lobbying expenses have already reached $20 million, with a chance to surpass last year's record once again.

Comparing the lobbying amounts with traditional financial institutions on Wall Street, the proportion has also significantly grown. In 2019, cryptocurrency lobbying expenses were approximately 2.9% of those of traditional financial institutions on Wall Street, but this year the proportion has risen to 19.6%, indicating the increasing influence of the cryptocurrency industry.

In the coming years, the growth of cryptocurrency industry lobbying may surpass that of traditional financial institutions on Wall Street, exerting greater influence in Washington.

Coinbase Leads Cryptocurrency Lobbying in the U.S.

Coinbase is the representative enterprise for cryptocurrency lobbying in Washington. Over the past five years, it has spent the most on lobbying in the cryptocurrency industry, approximately $7.51 million.

Following Coinbase is the U.S. Blockchain Association, which spent $5.23 million, and Ripple's company, Ripple, ranked third with lobbying expenditures of $3.46 million. All three have been involved in lobbying for the U.S. cryptocurrency industry for five consecutive years.

Additionally, many cryptocurrency exchanges and asset management companies, including Kraken, Crypto.com, Tether, and TaxBit, only began lobbying in 2022. However, these companies have all invested over a million dollars in lobbying in the past year or two, contributing to the growth in lobbying expenses.

Cryptocurrency Lobbying Update in 2023

Top Ten Institutions Account for 54% of Lobbying Expenditures

Among the 56 cryptocurrency companies and organizations lobbying this year, the top 10 have collectively spent $10.81 million so far, accounting for 54% of the current lobbying expenses, indicating significant disparities in lobbying expenditures among different companies.

The leaders in lobbying are mostly influenced by regulatory pressures. Coinbase, Binance, Kraken, and Ripple have all faced challenges from the SEC's actions against the industry this year, which is why they appear in the list of the top ten institutions in lobbying expenditures this year.

Popular Products Become New Lobbying Participants

In 2023, five well-known companies in the industry participated in U.S. cryptocurrency lobbying for the first time, namely: Andreessen Horowitz A16Z, OKX, Polygon, Solana, and Discover Crypto. Most of them have attracted market attention this year.