The U.S. crypto lobby has upped its game in 2023, spending more than $20 million and putting it on track to surpass its 2022 record. The surge in lobbying activity has been driven in part by the cryptocurrency industry’s continued growth from retail and institutional investors alike. This increase in spending has resulted in a drastic infusion of capital supporting regulations and legislation favorable to the emerging cryptocurrency and blockchain markets.
Lobbying expenditures for 2023 have been driven by industry groups such as the Chamber of Digital Commerce, the Internet Association, and the Blockchain Association, among others. These groups have been working to promote a wide range of efforts, from pushing for a safe harbor for cryptocurrencies such as Bitcoin, to advocating for stronger Anti-Money Laundering and Know Your Customer protocols, to advocating for greater digital asset protection.
The surge in lobbying activities has been met with a positive response from lawmakers. Recently, the U.S. Securities and Exchange Commission (SEC) put forward a proposal that would provide a three-year safe harbor for certain digital asset platforms, while also pushing for greater regulatory clarity around cryptocurrency investment. This proposal not only reflects the intense lobbying effort of the crypto space but is also seen as a sign of the government’s increasing willingness to regulate the industry.
The intense lobbying efforts of the industry have been buoyed by the influx of new investment into the crypto sector. Major institutional investors have been flocking to the industry, fueled in part by the increasing acceptance of Bitcoin and other coins by mainstream companies such as Tesla.
Looking ahead, it is likely that the lobbying efforts of the crypto industry will continue to grow. As governments and regulators become increasingly accustomed to, and more accepting of, cryptoassets, the sector will likely see even more monetary support. The result of this will be greater regulatory clarity and legal protection for those operating within the crypto space.