US crypto firms ramp up lobbying efforts, expenditures up 1386% over 7 years

A recent study has revealed that US crypto companies have significantly increased their lobbying efforts, with expenditures rising by 1386% from 2017 to 2023.

According to the data compiled by Social Capital Markets, crypto firms spent $40.42 million lobbying for regulatory changes during 2023 alone, signaling the growing importance of government relations in the industry.

The bulk of this spending has occurred over the past two years, with $78.94 million — almost 60% of total expenditures over the seven-year period — invested in 2022 and 2023. This surge reflects the sector’s intensified efforts to influence US policymakers as regulations on digital assets remain uncertain.

Leading crypto firms in lobbying

Apollo Global Management led crypto lobbying efforts in 2023, spending $7.56 million. The firm, which launched its crypto-focused platform Apollo Crypto in 2021, employed 104 lobbyists, including 78 revolvers — individuals who previously held public sector positions.

The Managed Funds Association (MFA) followed with $4.11 million in spending. This association represents alternative asset managers, many of whom have expanded into digital assets. MFA used 32 lobbyists, 25 of whom were revolvers, reflecting its strong push to influence crypto regulations.

Coinbase dramatically increased its lobbying expenditures over the years. The exchange spent $2.86 million in 2023, marking a 3475% increase from the $80,000 it spent in 2017. Its total lobbying investment since 2017 stands at $8.45 million, with 74% of that spent in just the last two years. The exchange used 39 lobbyists during 2023, 32 of whom were revolvers.

A key driver behind this lobbying surge is the industry’s need for regulatory certainty. The US still lacks a clear legal framework for digital assets, and the crypto industry is pushing for more tailored legislation that distinguishes between cryptocurrencies and traditional financial products.

Political donations on the rise

Despite the dramatic rise, crypto lobbying still accounts for less than 1% of total lobbying expenditures in the US, which hit an estimated total of $4.26 billion in 2023. This shows that while crypto is making strides in Washington, it remains a relatively small player compared to more established sectors such as healthcare, finance, and energy.

Meanwhile, spending for 2024 is likely to be lower than the previous year, with crypto firms spending $13 million on lobbying during the first half — less than half of the $40.42 million spent over 2023.

However, the decline coincides with a significant increase in political donations, with the crypto industry spending more than $119 million on federal elections this year through Political Action Committees (PACs). This total accounts for nearly half of all corporate election spending this cycle.

Coinbase has led with $51 million in donations, including $500,000 each to both Republican and Democratic PACs, such as the Congressional Leadership Fund and Senate Leadership Fund. Much of the exchange’s funding — $61.5 million — went to Fairshake PAC, which has actively supported pro-crypto candidates and opposed those seen as hostile to the industry.​

Mentioned in this article