In 2021, US crypto lobbying spending doubles. The biggest spenders

Ripple Labs spent $2 million on crypto lobbying in the US during the last five years.

Crypto lobbying funding has increased dramatically in recent years, as has the number of crypto advocates in the US.

Crypto-related lobbying spending in the US hit $4.9 million in 2021, up from $2.3 million the year before, according to a new analysis by Cryptohead.io. The study uses data from Open Secrets, a research and government transparency initiative.

According to Cryptohead, approximately $9.5 million has been spent on lobbying in the last five years. In 2017, crypto lobbying costs were as low as $200,000.

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In addition to Cryptohead’s $5 million estimate for US crypto lobbying, some observers claim the business spends far more on things like political activities. Americans for Financial Reform found that Wall Street executives, employees, and trade associations spent approximately $3 billion on political campaigns in 2020.

It says Ripple Labs, the open-source protocol and remittance system provider, has spent over $2 million on lobbying in the last five years.

This makes Ripple Labs “potentially the most influential crypto firm in the USA,” according to the report. The SEC has been suing Ripple Labs since late 2020, saying that the firm engaged in a $1.3 billion unregistered XRP securities offering.

Coinbase, Robinhood, Blockchain Association, and Block.one are among the major industry lobbyists. Coinbase reportedly spent over $1.3 million lobbying in 2021, according to records.

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The crypto industry’s increased lobbying spending appears to be a response to growing regulatory scrutiny from US regulators.

The SEC threatened to sue Coinbase in September 2021 over their crypto yield programme Lend, which it deemed a security. The company had to abandon the Lend product. As early as September 2016, the US Financial Industry Regulatory Authority ordered Robinhood to pay about $70 million in fines for “systemic supervisory failures” and extensive user harm.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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