With the uncertainty around cryptocurrency regulations, players in the space are making attempts to align with policymakers in a bid to establish a friendly environment. Consequently, the amount spent on cryptocurrency lobbying has steadily increased over the last five years as the sector matures.
Data presented by Finbold shows that money spent on crypto lobbying by U.S. companies increased by 116% in 2021 to $4.9 million from 2020’s figure of $2.28 million. In 2019, the amount stood at $1.24 million to represent year-over-year growth of 35% from 2018’s figure of $0.92 million.
The largest growth rate was registered between 2017 and 2018 at 360% from $0.2 million. Cumulatively, the amounts spent on lobbying stood at $9.56 million over the last five years.
Elsewhere, retail investment platform Robinhood spent the highest amount on crypto lobbying at $1.35 million, followed by Ripple Labs at $0.9 million with digital currency exchange Coinbase is third at $0.79 million.
Blockchain Association has utilized $0.5 million with Block.One closing the top five category at $0.28 million.
Other entities spending on lobbying include CoinFlip ($0.24 million), Digital Currency Group ($0.17 million), Marqeta ($0.15 million), Algorand ($0.15 million), Chainalysis ($0.13 million), Binance ($0.02 million), and Chia Network ($0.01 million).
Blockchain and crypto sector maturing
The report highlights the motivation behind the increasing amount spent by cryptocurrency entities on lobbying. According to the research report:
“Blockchain technology has grown in maturity, but some crypto supporters are concerned that regulators and politicians may misinterpret this revolutionary technology. However, in American politics, the act of influencing officials to promote one’s own interests is legal, and lobbyists may be found in practically every business in the country.”
With the funding, there are concerns legislators might not fully represent the value of blockchain technology.
Read the full story with statistics here: https://finbold.com/u-s-crypto-lobbying-expenditure-doubles-in-2021-fueled-by-regulatory-uncertainty/