Despite a significant rise in spending since 2017, crypto lobbying still represents less than 1% of the total lobbying expenditures in the U.S.
A recent study reveals that U.S. crypto companies have drastically increased their lobbying efforts, with expenditures surging by 1,386% between 2017 and 2023.
According to data compiled by Social Capital Markets, crypto firms spent $40.42 million on lobbying for regulatory changes in 2023 alone, highlighting the growing importance of government relations in the sector.
Most of this spending occurred over the past two years, with $78.94 million — nearly 60% of the total expenditures over the seven-year period — invested in 2022 and 2023. This surge reflects the industry’s intensified push to influence U.S. policymakers as regulations on digital assets remain uncertain.
Leading Crypto Firms in Lobbying
Apollo Global Management led the charge in 2023, spending $7.56 million on lobbying efforts. The firm, which launched its crypto-focused platform Apollo Crypto in 2021, employed 104 lobbyists, 78 of whom were “revolvers” — individuals who previously worked in the public sector.
The Managed Funds Association (MFA) followed with $4.11 million in spending. MFA, representing alternative asset managers expanding into digital assets, employed 32 lobbyists, including 25 revolvers, showing its strong focus on crypto regulations.
Coinbase significantly ramped up its lobbying efforts, spending $2.86 million in 2023 — a staggering 3,475% increase from the $80,000 it spent in 2017. Over the years, Coinbase has invested $8.45 million in lobbying, with 74% of that amount spent in the last two years alone. The exchange employed 39 lobbyists in 2023, 32 of whom were revolvers.
The surge in lobbying is driven by the industry’s urgent need for regulatory clarity, as the U.S. still lacks a comprehensive legal framework for digital assets. The crypto industry is advocating for more tailored regulations that distinguish cryptocurrencies from traditional financial products.
Political Donations on the Rise
Despite this significant increase, crypto lobbying still accounts for less than 1% of total lobbying expenditures in the U.S., which reached an estimated $4.26 billion in 2023. This underscores that while crypto is making progress in Washington, it remains a relatively small player compared to sectors like healthcare, finance, and energy.
Lobbying spending in 2024 is expected to decline, with crypto firms spending $13 million in the first half of the year — less than half of the $40.42 million spent in 2023.
However, this decline has coincided with a major increase in political donations, with the crypto industry contributing over $119 million to federal elections through Political Action Committees (PACs) this year. This accounts for nearly half of all corporate election spending in this cycle.
Coinbase has led the charge in donations, contributing $51 million, including $500,000 to both Republican and Democratic PACs like the Congressional Leadership Fund and Senate Leadership Fund. Additionally, $61.5 million of its funding went to Fairshake PAC, which supports pro-crypto candidates and opposes those viewed as hostile to the industry.
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