Crypto Lobbying

Key Insights

• Industry wide spending on lobbying has increased significantly over the last five years, though total expenditures remain well below traditional finance and other well-regulated industries like oil and gas.
• Top spenders on lobbying so far this year include Coinbase, Binance, the Blockchain Association, Kraken, and Tether.
• Market structure and stablecoin legislation have been the two main policy issues for lobbyists.
• As some lawmakers continue to push for legislation that could cripple the industry (e.g., Senator Elizabeth Warren’s Digital Asset Anti-Money Laundering Act), advocacy efforts aimed at protecting innovation in the U.S. will likely remain a critical priority for crypto operators  in the near term.

Introduction

“Lobbying” generally refers to advocacy efforts aimed at achieving favorable policy outcomes. For example, companies may employ internal policy staff or external government affairs firms (usually with previous government experience) to engage with government officials and staff on key issues impacting their business. Because Members of Congress and their staff are responsible for such a broad array of issues, they often deal with topics outside of their area of expertise or comfort zone. Lobbyists can thus help bridge the knowledge gap between industry and government throughout the policy development process.