Crypto Lobbying Soars 1,130% in 5 Years: What’s Driving the Surge?
• Crypto lobbying expenditure has dramatically increased by 1,130% in the last five years as the industry faces increased regulatory scrutiny
• Major players in the crypto space are investing significant sums of money to sway politicians and regulators
• The surge in lobbying is driven by a number of factors, including the aftermath of the FTX scandal, the indictment of Sam Bankman-Fried, and SEC lawsuits against major crypto firms like Coinbase and Binance
Crypto Lobbying Expenditure
The crypto industry’s lobbying expenditure has skyrocketed over the past five years. It has more than doubled each year since then, reflecting increasing regulatory scrutiny of crypto. As governments tighten their grip on this emerging sector, major players are pumping money into efforts to influence policymakers. This is why there has been a staggering 1,130% increase in crypto lobbying expenditure in just five years.
What’s Driving the Surge?
Louis Schoeman from Forex Suggest highlighted some of the challenges and setbacks that have hurt crypto’s credibility. He pointed out that scandals such as FTX and Sam Bankman-Fried’s indictment have led companies to try to rectify their reputations through intense lobbying efforts. Additionally, Schoeman noted that SEC lawsuits against major firms like Coinbase and Binance could challenge existing regulations and shift regulatory oversight towards them. All these developments have contributed to an exponential rise in spending on cryptocurrency lobbying.
Research by Forex Suggest
Forex Suggest conducted research which revealed an impressive 1,130% growth in US-based crypto lobbying expenditure over a five year period. It appears that larger companies are investing significantly more funds into influencing policymakers as they seek to protect themselves from stricter regulations or potential lawsuits for violating those regulations.
It is clear that there has been a noticeable surge in crypto lobbying activity over recent years due to various factors relating to increased regulation and legal action against cryptocurrency companies. As these companies strive to maintain their current market standing while navigating new legislation, it is likely that we will see further investment into this area as they look for ways to influence policy makers both domestically and internationally.
If you want to learn more about cryptocurrency regulation check out our topical overview here: [Link]