Coinbase has maintained its position as a leader in lobbying expenditures for the past six years, but Binance.US is rapidly gaining ground in its efforts to catch up. With both companies vying for the top spot, it will be interesting to see which one comes out on top in the end.
The crypto industry has seen a dramatic surge in lobbying efforts since the start of the crypto winter in late 2020. According to a report released on February 23 by the Money Mongers, the market participants spent a total of $25.57 million on lobbying in the United States in 2022. This figure is based on data from OpenSecrets, a nonpartisan nonprofit that tracks lobbying expenses in the U.S.
The industry's lobbying budgets have skyrocketed by an astonishing 922% over the past five years, from $2.5 million in 2017 to $25.57 million in 2022. This represents a 121.41% increase from the $11.54 million spent in 2021.
Leading the list of spenders is the U.S.-based crypto exchange Coinbase, which paid $3.3 million to 32 lobbyists in 2022. The Blockchain Association and Robinhood followed closely behind, spending $1.9 million and $1.84 million respectively, with 18 and 20 lobbyists hired respectively.
The American subsidiary of the world’s largest crypto exchange, Binance.US, occupied the ninth spot on the list with $960,000 spent in 2022. However, Coinbase has consistently maintained a high level of expenditure, shelling out around $1-1.5 million each year, while Binance.US only began spending in 2021 and saw its efforts increase from $160,000 to almost $1 million in just one year.
The overall expenditure of crypto companies on lobbying in America stands at slightly over $50 million in the past six years, which is relatively modest when compared to other industries.
For example, pharmaceutical companies alone spent more than $350 million in 2022 on federal lobbying efforts. This stark contrast in spending highlights the importance of lobbying for certain industries, and the potential for crypto companies to increase their influence in the future.
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