These cryptocurrency companies that spend millions on lobbying

The cryptocurrency industry often faces marked hostility from regulators and the public, yet spends large sums to defend itself. This is the conclusion of a report from Crypto Head, which shows that the ecosystem has doubled its lobbying efforts since last year. Decryption.

Crypto Lobbying: When the ecosystem pays to convince the government

The report focuses on the United States, where lobbying is legal, albeit regularly criticized. As the report points out, lobbying is an almost mandatory step for new industries in order to educate policy makers. This is what the crypto ecosystem has started to do, whose efforts accelerated last year.

As proof, this ranking of cryptocurrency companies that spent the most on lobbying last year. Robinhood, Ripple Labs (XRP) and Coinbase I’m at the top of the ranking:

Figure 1: Spending on lobbying in the cryptocurrency sector

The sums are substantial. The Robinhood investment platform surpassed $ 1.3 million in 2021and Ripple Labs is also approaching the million dollar mark. The report also notes the number of lobbyists hired by these companies. Coinbase recruited 23, compared to 12 from Ripple Labs and 3 from Robinhood.

👉 Find our tutorial and opinion on Coinbase

cryptoast logo

Discover ZenGo

$ 10 Bitcoin as a $ 200 deposit bonus 🔥

toaster icon

Investing in cryptocurrencies is risky (find out more)

Expenses skyrocketing

Since 2017, lobbying expenses by cryptocurrency companies have skyrocketed. Five years ago, it was only $ 200,000. But in 2021 they are nearly 5 million dollars that have been spent in total:

Evolution of lobbying spending on cryptocurrency companies

Figure 2: Spending growth since 2017

If we leave out the thorny question of the need for lobbying, we see that these figures show that the ecosystem has evolved a lot in the last five years. Substantial means they are now set to influence decision makers – who remain globally ignorant when it comes to cryptocurrencies.

In five years, $ 9.5 million was spent by lobbying corporation with the US government. We have no data for other regions of the world, for example Europe, but we can confidently estimate that similar initiatives are underway with the European Union.

👉 Also in the news: UK and US to work together on cryptocurrency regulation

cryptoast logo

Discover our Private Group

Content with high added value and quick to consume

toaster icon

Source data and charts: Crypto Head

Newsletter 🍞

Get a cryptocurrency news summary every Sunday 👌 And that’s it.

What you need to know about affiliate links. This page presents assets, products or services related to investments. Some links in this article are affiliates. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus using our links.

Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and cannot be held responsible, directly or indirectly, for any damage or loss caused as a result of the use of a good or service highlighted in this article. Investments related to cryptocurrencies are risky in nature, readers should do their own research before taking any action and invest only within the limits of their financial capabilities. This article does not constitute investment advice.

Leave a Comment