Coinbase Lobbying Efforts In the US Hits Historic Level

September 08, 2024

🚀 Stay Ahead with AltcoinDaily.co! 🌐

There has been a significant spike in lobbying expenses in the crypto industry, particularly within the past six to seven years. According to a report, Social Capital Markets noted that crypto stakeholders’ spending to lobby in the United States rose by about 1,386% between 2017 and 2024.

This indicates that key crypto players decided to respond strategically to regulatory authorities’ policies. Specifically, the U.S. Securities and Exchange Commission (SEC) has intensified its enforcement moves on perceived non-compliance.

Coinbase Leads the Charge in Crypto Lobbying

The analysis shows that Coinbase, the largest cryptocurrency in the U.S., leads the pack of lobbyists with a 3,475% leap in budgetary allocation for this purpose. The exchange’s spending jumped within a six-year period from $80,000 in 2017 to approximately $2.9 million in 2023.

🌟 Unlock Crypto Insights with AltcoinDaily.co! 💰

Interestingly, a greater percentage (74%) of this huge spike occurred within the last two years. This indicates that Coinbase intensified efforts to persuade and influence both legislative and regulatory outcomes for the exchange. The uptick in lobbying expenditure occurred during a critical phase of the company as it sought a favorable regulatory environment to secure its future growth path.

Other Crypto Giants Follow Suit

Besides Coinbase, Binance U.S. also engaged in massive lobbying. The exchange increased its persuading expenditure by 656.3%, as spending rose sevenfold, from $160,000 in 2021 to almost $1.2 million in 2023.

Another notable spender in the lobbying effort was Ripple, whose expenditure climbed from $50,000 in 2021 to $940,000 in 2023, representing about a 1,780% increase in expenses. Industry experts see this as a significant development for the crypto space. They maintain that these stakeholders have come to recognize the significance of pressuring for policies that promote innovation while safeguarding the sector’s interests.

🦂 AltcoinDaily.co is your trusted source for the latest in crypto news and insights. 🚀

BlackRock’s Strategic Influence in Crypto Space

Aside from exchanges, other lobbyists were major financial players like BlackRock, the world’s largest asset manager. Although there is no statistical data on the amount spent on persuasion, the global asset manager was pivotal in facilitating the approval of spot Bitcoin exchange-traded funds (ETF).

Sources familiar with the process say BlackRock gathered considerable influence and resources to push for easier access to Bitcoin. It achieved this using structured investment products like iShares Bitcoin Trust (IBIT).

Meanwhile, as the race to the U.S. election in November thickens, industry players are taking advantage of the electioneering to pledge support for the presidential candidates.