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.
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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:
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
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Source data and charts: Crypto Head
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