Cryptocurrency companies are increasingly investing in lobbying to secure favorable legislation, with expenditures skyrocketing 922% in the past six years, according to a recent study by Money Mongers. The report reveals that crypto lobbying contributions reached almost $26 million in 2022, highlighting the industry's drive to influence policy in its favor.

Coinbase and CME Group Lead Crypto Lobbying

Leading the charge in 2022 were Coinbase, the Blockchain Association, and Robinhood, with lobbying expenditures of $3.30 million, $1.9 million, and $1.84 million, respectively. In addition, the report notes that nearly half of the total crypto lobbying spending in the last six years occurred in 2022 alone.

Significant growth in lobbying expenditure was observed across various crypto companies. Coinbase's spending has surged 4,137% in the past six years, while Binance.US has seen a 500% increase, FTX.US witnessed a 1,340% growth, and Ripple experienced a 2,060% rise in lobbying expenditure.

The top five companies contributing the most to lobbying spending since 2017 include CME Group, Coinbase, Block Inc (formerly Square Inc), the Blockchain Association, and Robinhood Markets.

“These individuals and companies aided them in getting specific policies either passed through the houses or brought to the forefront of the public conscience so that there is organic support for them as well,” the study stated.

However, lobbying efforts have not always guaranteed favorable outcomes, with skepticism about the cryptocurrency industry's impact on the financial world remaining a challenge.

A Growing Number of Lobbyists and Revolvers among Crypto Companies

CME Group has been a trailblazer in crypto lobbying, shelling out $8.26 million since 2017. In their push in 2022, they assembled a formidable team of 20 lobbyists, 13 of whom were seasoned revolvers. Meanwhile, Coinbase has consistently increased its lobbying budget, reaching an impressive $5.595 million over six years. In 2022 alone, they deployed a robust force of 32 lobbyists, with 26 revolvers in the mix.

Block Inc (previously Square Inc) has been another major player, investing a total of $4.56 million in lobbying over six years. In 2022, they strategically allocated $1.17 million and enlisted a powerful team of 36 lobbyists, including 25 revolvers. On the other hand, the Blockchain Association, the collective voice of the crypto industry, has dedicated $3.91 million to lobbying since 2017. Last year, they funneled $1.9 million into their efforts, recruiting 18 lobbyists, 12 of whom boasted experience as revolvers.

Robinhood, a newcomer to the crypto sector, quickly embraced lobbying efforts, spending $3.895 million in just three years. In their ambitious 2022 campaign, they poured $1.84 million into lobbying and assembled a team of 20 lobbyists, including 12 knowledgeable revolvers.

The Money Mongers' study utilized data from OpenSecrets, ensuring transparency and allowing for a comprehensive analysis of the industry's lobbying activities from 2017 to 2022.

The cryptocurrency market's first bigger lobbying movement occurred as early as 2018. A year later, at least 40 companies in the United States tried to influence policy shaping so that the new regulations would favor the digital asset industry.