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In recent years, spending on cryptocurrency lobbying in the United States has experienced a dramatic increase, with a notable surge occurring over the past two years. Since 2017, expenditures in this sector have risen by 1,386%, underscoring the growing influence of key players in shaping regulatory frameworks for digital assets.
According to a report by Social Capital Markets, Coinbase has significantly ramped up its lobbying efforts, with spending increasing by 3,475% from 2017 to 2023. The crypto exchange's expenditures grew from $80,000 to $2.86 million. Ripple Labs also saw a substantial increase in lobbying costs, rising by 1,780% over the same period, from $50,000 to $940,000. Binance.US, another major player, escalated its lobbying expenses from $160,000 in 2017 to $1.2 million in 2023, reflecting a 656% increase.
Additional contributions to the lobbying landscape include Tether, which allocated $1.2 million to advocacy efforts in 2023, and decentralized exchange Uniswap, which spent $280,000. Fintech firm Block Inc. significantly increased its lobbying expenditure to $1.7 million.
The escalation in lobbying expenditure coincides with heightened regulatory scrutiny and legal challenges faced by these firms. Ripple Labs, for example, has been engaged in a legal dispute with the U.S. Securities and Exchange Commission (SEC) regarding the sale of the (XRP) token. Similarly, Binance.US and Coinbase have faced regulatory issues, with the SEC accusing them of operating unregistered exchanges and offering unregistered securities.
Lobbying activities are protected under the U.S. Constitution's First Amendment, which guarantees the right to petition the government. In recent years, cryptocurrency firms have sought to influence legislation to establish clearer regulatory guidelines, aiming to resolve the current ambiguities in the legal environment for digital assets.
Overall, cryptocurrency lobbying expenditures have surged, with nearly 60% of the total amount spent in the last two years alone. Key contributors to this trend include Apollo Global Management, which expended $7.56 million in 2023, and the Managed Funds Association, which spent $2.86 million in the same year. These efforts highlight the growing emphasis on shaping policies related to blockchain and digital assets.
