Crypto companies have ramped up their lobbying spending in recent years, seeking to influence US legislation. Among them are Coinbase, Ripple Labs, and Binance.US.
Increase in Lobbying Expenditures
According to a Social Capital Markets report, Coinbase's lobbying expenditures increased by 3,475% since 2017, from $80,000 to $2.86 million in 2023. During the same period, Ripple Labs saw a 1,780% increase in its lobbying costs, from $50,000 to $940,000. Binance.US has also been among the major players, with expenses rising from $160,000 in 2017 to $1.2 million in 2023.
Legal and Regulatory Challenges
Many of these companies have faced legal and regulatory scrutiny. Ripple has been in a legal battle with the US Securities and Exchange Commission (SEC) since 2020 over the sale of the XRP token. Binance.US has faced several regulatory challenges, including a lawsuit from the SEC in 2023, accusing the company of operating as an unregistered exchange and broker. Coinbase is also involved in a legal dispute with the SEC, which accuses the platform of offering unregistered securities.
Major Lobbying Players
Since 2017, crypto lobbying expenditures in the US have surged by 1,386%. Key players include Apollo Global Management, which spent $7.56 million on lobbying in 2023 and $28.7 million over the past seven years. Managed Funds Association invested $2.86 million in 2023 and $21.9 million since 2017.
With increasing legal and regulatory challenges, crypto companies continue to ramp up their lobbying expenditures in an effort to influence legislative frameworks and secure clearer regulatory guidance for digital assets.
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