The lobbying expenses that have been made recently show the rising worries of crypto and blockchain businesses concerning the upcoming regulators that will have a say in the regulation of the cryptocurrency industry.
The cryptocurrency lobbying expenses surged in 2021, as they incurred a rise of 116%. $4.9 million of those expenditures were allocated to influence legislators and public officials, where the highest spendings are associated with the likes of Ripple, Coinbase, and Robinhood.
The overall amount of spending on lobbying has climbed dramatically since 2017. Lobbying expenses soared by the most substantial amount, from $200,000 to $920,000 in 2018. However, the most significant real rise occurred between 2020 and 2021, when spending increased by $2.65 million, having doubled from the year before.
Over the course of five years, the combined crypto lobbying spending had topped $9.56 million by the end of 2021. If the annual growth rate keeps rising in 2022, this sum might rise to $15 million or even higher by the end of 2022, per the Crypto Head research.
In 2021, Robinhood was the company that had the biggest expenditures on cryptocurrency lobbying, contributing $1.35 million to the cause. Seeing how swiftly Robinhood has grown into a prominent participant in the cryptocurrency industry, the fact that it only added crypto trading options to its platform only in the beginning of 2018 says a great deal.
Likewise, the blockchain business responsible for Ripple (XRP) – the popular cryptocurrency contributed $0.9 million as the second-largest commitment. Next in line was Coinbase, having contributed a total of $0.79 million. Binance, compared to its other competitors in the industry, merely contributed to $0.02 million, seeing as the crypto exchange platform previously had troubles with US regulators.
Moreover, financial reports for the Senate and the House of Representatives between December of 2020 and 2021, disclosed that members of Congress exchanged a total of $570,000 in cryptocurrency.
Due to the legality of cryptocurrency lobbying, because elected representatives traded in cryptocurrencies while being cognizant of the discussions and arguments that resulted in President Biden’s legislative agenda, it expresses concern about the legitimacy of the trading process.
Although blockchain technology has developed, some cryptocurrency enthusiasts are fearful that authorities and legislators may misconstrue it entirely. Lobbying is permissible in American politics, and lobbyists may be seen in nearly every industry.