Crypto Lobbying Rose 1386% in Seven Years, But the Industry Is Still Playing Catch-Up

Lobbying has become one of the primary methods companies use to shape policy in their favor. For crypto companies, this is particularly important.

Lobbying has become one of the primary methods companies use to shape policy in their favor. For crypto companies, this is particularly important, as US legislators have still not approved a comprehensive legal framework for digital assets.

For this reason, in recent years, the scale and intensity of crypto lobbying efforts have increased dramatically. Still, while other industries employed the practice for decades, crypto is just catching up.

Crypto Lobbying Rose 1386% in Seven Years

Crypto lobbying efforts are increasingly ramping up. In 2023, crypto companies spent $40.42 million on lobbying activities, a 1386% rise from 2017. The rapid rise is seen in the fact that nearly 60% of the total spending over that period occurred in the last two years.

Still, these figures don’t tell the whole story. For one, crypto lobbying efforts pale in comparison to those of other industries. According to Statista, total lobbying expenditures in 2023 reached a staggering $4.26 billion. This means that crypto lobbying represents less than 1% of total lobbying expenditures in the US.

What is more, lobbying expenditures did not rise as much as the crypto industry did overall. For instance, from January 2017 to January 2024, Bitcoin rose from about $1000 to $44,000, representing a 4400% increase, more than three times the increase in lobbying.

Crypto Firms Scramble to Secure Favorable Framework for Crypto

One of the reasons why crypto companies need lobbying is that the US still lacks a comprehensive regulatory framework for digital assets. Without such a framework in place, regulatory uncertainty discourages both investors and entrepreneurs from getting involved in the industry.

Additionally, the current approach of the U.S. Securities and Exchange Commission, which applies existing securities laws to crypto, is seen as overly restrictive. Critics, including SEC Commissioner Hester Peirce, believe these regulations are inadequate for decentralized digital assets. If the legislators created a different framework for digital assets, the SEC would have to follow it. This is why crypto firms have a strong incentive to lobby.

Major Players Shaping Crypto Lobbying

Apollo Global Management was in the lead in 2023, spending $7.56 million on lobbying. The company, which operates a crypto-focused arm called Apollo Crypto, employed 104 lobbyists, including 78 revolvers—former public sector employees who now work in the private sector.

Managed Funds Association (MFA), representing major alternative asset managers with interests in cryptocurrencies, followed closely with $4.11 million in lobbying expenditures. MFA employed 32 lobbyists, 25 of whom were revolvers.

Coinbase, one of the largest crypto exchanges, also dramatically increased its lobbying efforts, spending $2.86 million in 2023—a 3475% increase since 2017.

On the Flipside

Why This Matters

As crypto lobbying efforts intensify, they highlight the need for a comprehensive regulatory framework in the U.S. Without clear regulations, the crypto industry faces continued uncertainty, hurting innovation and investment.

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