United

<p>In an era where regulating this rapidly expanding market has become a crucial issue, crypto companies’ lobbying expenditures have reached staggering amounts. In 2023, these players spent more than 40 million dollars to represent their interests to governments. This surge in lobbying expenditures signifies a true battle for the future regulatory framework of cryptos.</p> 
<h2 id="h-une-explosion-des-depenses-en-lobbying">An explosion in lobbying expenditures</h2> 
<p>In 2023, <a href="https://www.cointribune.com/en/usa-lobbying-crypto-companies-spend-millions-to-influence-regulation/" target="_blank" rel="noreferrer noopener">crypto companies’ lobbying expenditures</a> reached 40.42 million dollars. This amount reflects an increase of 1386% compared to 2017, where investments in this domain were only 2.72 million dollars. Among the biggest spenders, Apollo Global Management stands out with a contribution of 7.56 million dollars, closely followed by the Managed Funds Association (4.11 million) and Coinbase (2.86 million). <a href="https://x.com/Crypto__Goku/status/1831761942714970213" target="_blank" rel="noreferrer noopener">Indeed, nearly 60% of total expenditures were made in 2022 and 2023</a>. These figures highlight the acceleration of lobbying efforts in a context where crypto regulation is becoming a priority for governments. Lobbying investments aim to influence regulations to ensure a favorable environment for crypto innovation.</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1"> 
 </div> 
</div> 
<p>This lobbying race is also marked by a strong mobilization of human resources. For example, Apollo Global Management employed 104 lobbyists, including 78 “revolvers,” meaning former public sector members now active in private affairs. These individuals benefit from precise knowledge of the internal workings of public decision-making bodies.</p> 
<div class="affiliate-button"> <a class="affiliate-button__link" href="https://www.bitget.com/referral/register?from=referral&amp;clacCode=Y6GU6UFX" target="_blank" rel="noreferrer noopener">Discover the Bitget platform and buy your first cryptocurrencies</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noreferrer noopener">This link uses an affiliate program.</a> 
</div> 
<h2 id="the-race-for-regulatory-influence">The race for regulatory influence</h2> 
<p>Another key player in this dynamic is Coinbase, whose lobbying expenditures increased by 3475% since 2017. From 80,000 dollars, they rose to 2.86 million in 2023. The rise of the Californian company is part of its strategy to become a key player in the development of crypto laws in the United States. With a presence in over 100 countries and a high transaction volume, Coinbase positions itself as a central figure in crypto exchanges and intends to heavily influence decisions that could affect its business model. It employed 39 lobbyists, including 32 revolvers, to strengthen its political weight.</p> 
<p>Other companies are not far behind. Binance.US also saw its expenditures explode, with an increase of 656% between 2021 and 2023. Ripple, for its part, increased its expenditures by 1780% since 2017. The growing influence of crypto players on legislators could well shape laws that are particularly favorable to them. However, this dynamic raises concerns about the balance between innovation and consumer protection.</p>  
<p>The rise in lobbying expenditures in the crypto sector reflects a clear intention of companies to influence a regulatory framework that is still under construction. While these massive investments show the growing weight of the industry in political decisions, they also raise concerns about the independence of regulators in the face of such powerful private interests. <a href="https://www.cointribune.com/crypto-lembauche-dex-fonctionnaires-dans-le-secteur-inquiete-des-legislateurs/" target="_blank" rel="noreferrer noopener">The hiring of former officials in the sector</a> is a strategy that increasingly worries legislators.</p>

Crypto Lobbying Expenses Explode By 1386% In 7 Years: A Danger For Regulations?

Table of Contents

Cointribune EN

Other articles published on Sep 7, 2024

Trump Supports Controversial Crypto Project

Vitalik Buterin Shares 10-Year Visions for Ethereum Network

Meta’s Stock Gains Surpasses Bitcoin as Ethereum Struggles in 2024

Leading Blockchain Platforms Gaining Ground Against Ethereum in 2024

MEV Bot Generates $37K from Just $100 by Manipulating Illiquid Pool on Uniswap

Donald Trump Launches Fourth NFT Collection with Exclusive Physical Rewards

Join our free newsletter for daily crypto updates!