Last Updated: August 2, 2023
• Crypto lobbying expenditure has increased by 1,130% in the last five years.
• Major players are investing significant amounts of money into efforts to sway politicians and regulators.
• This is due to increased regulatory scrutiny of crypto and events such as the FTX scandal and indictments of prominent figures.
Crypto lobbying expenditure has increased by a staggering 1,130% in the last five years, more than doubling every year in that period. This surge reflects increasing regulatory scrutiny of crypto as companies attempt to influence regulation that is favorable for them. Major players have invested significant amounts of money into efforts to sway politicians and regulators due to events such as the FTX scandal and indictments of prominent figures.
What Drives Crypto Lobbying?
Louis Schoeman from Forex Suggest provided insight into why there has been an increase in crypto lobbying expenditure. He pointed out that the industry has faced significant challenges including scandals, catastrophic firm crashes, plunging cryptocurrency values, plummeting funding levels, and users fleeing the industry which have all damaged its credibility. These events have led crypto firms to strive to rectify the damage through influencing regulations that are favorable for them which explains why there is such a dramatic increase in lobbying expenditure. Specifically he mentioned threats such as potential lawsuits by the Securities and Exchange Commission against major crypto firms like Coinbase or Binance which could challenge previously held notions about how tokens should be regulated or not (as securities).
Exponential Increase in Lobbying Expenditure
Research conducted by Forex Suggest showed that crypto lobbying expenditure in the United States increased dramatically over the past five years – 1,130%. It is clear this surge was driven by an effort from within the industry to influence regulation on their behalf due to events such as those mentioned earlier damaging their credibility.
It’s evident that rising regulatory scrutiny on cryptocurrency has driven an exponential increase in crypto-lobbying expenditure over recent years -1,130%. This surge reflects a need for companies within this space to defend themselves against legal challenges posed by entities like The Securities and Exchange Commission while attempting to restore their reputation damaged by scandals . As a result , they are investing significant sums of money into influencing legislation favourable for them .