Recent lobbying expenditures indicate that cryptocurrency and blockchain businesses are growing increasingly concerned about the future regulators who will be in charge of overseeing their respective industries.
Data presented by Finbold shows, that money spent on crypto lobbying increased by 116% in 2021, with $4.9 million being leveraged to try to influence lawmakers and public authorities with Robinhood, Ripple, and Coinbase dominating the amount spent on crypto lobbying.
Since 2017, the total amount of money spent on lobbying has increased significantly. Lobbying expenditures increased from $200,000 to $920,000 in 2018, representing the largest percentage increase. Nonetheless, the most substantial real increase happened between 2020 and 2021, with expenditure rising by $2.65 million more than doubling the previous year.
By the end of 2021, total crypto lobbying expenditures had reached $9.56 million over five years. If the yearly growth rate continues to increase in 2022, this figure may reach $15 million or even more by the end of the following year. The figures are based on the report published in February 2022 by the digital assets-focused website Crypto Head.
Last year, Robinhood spent the most on cryptocurrency lobbying in 2021 making a $1.35 million contribution to crypto lobbying expenditures. Given that Robinhood only introduced cryptocurrency trading options on its platform in January 2018 speaks volumes about how quickly the company has grown into a major player in the cryptocurrency market.
Meanwhile, Ripple Labs, the blockchain company behind the cryptocurrency token Ripple (XRP), made the second-largest contribution with $0.9 million. Elsewhere, cryptocurrency exchange Coinbase came in third with $0.79 million whereas rival crypto exchange Binance, which has had issues with U.S regulators in the past, contributed just $0.02 million.
Congress jumps into crypto
Furthermore, financial disclosures from December 1, 2020, to December 22, 2021, for the Senate and for the house last year, revealed members of congress purchased and sold $570,000 in crypto.
Since elected officials traded while being privy to the talks and debates that culminated in President Biden’s legislative program, it raises questions about the integrity of the trading process especially when crypto lobbying is allowed.
Lobbying is lawful
Blockchain technology has grown in maturity, but some crypto supporters are concerned that regulators and politicians may misinterpret this revolutionary technology.
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.