New research reveals that crypto lobbying expenditure skyrocketed by 1,330% in the last five years, but what heights could expenditure reach in the next few years?
The crypto experts at Forex Suggest have revealed new data showing crypto lobbying expenditure has increased by 1,330% in the last 5 years + they weigh in on where expenditure could be in the next 5 years.
Lobbying expenditure increases since 2018:
|Year||Total Lobbying Expenditure||Annual increase|
- Over the last five years, lobbying expenditure has climbed by a total of 1,330%, from $830,000 to $11,875,000.
- Crypto companies increased their spending on lobbying by 54% in 2022 compared to 2021 with a total spend of $11,875,000.
Where will lobbying expenditure be in the next 5 years?
- Crypto lobbying expenditure has had a rapid average growth rate of 113.3% over the past 5 years, with this trend continuing, lobbying expenditure could reach $133,382,425 by 2026.
Louis Schoeman, MD and crypto expert at Forex Suggest commented on the rapid increase of lobbying expenditure and what may be driving the large growth.
Schoeman said, “The crypto industry has faced significant challenges and setbacks which have affected the industry’s credibility. Scandals, catastrophic firm crashes, plunging cryptocurrency values, plummeting funding levels, and users fleeing the industry to place their hard-earned funds into savings have all plagued the industry.
“Particularly in the aftermath of the FTX scandal and the indictment of its prominent founder, Sam Bankman-Fried, the industry has been strongly striving to rectify the damage, increasing their expenditure by 54% in 2022 alone.
“The rising regulatory scrutiny of the industry is another reason for the increase in lobbying spending by crypto companies. Crypto firms are increasingly attempting to influence the regulatory process in order to ensure that any new legislation is in their best interests, and if the SEC’s lawsuits against Coinbase and Binance are successful, they have the potential to cause a significant shift in the cryptocurrency / digital assets industry.
“These lawsuits could challenge the prevailing notion and result in a shift in regulatory oversight by asserting the Securities and Exchange Commission’s (SEC) jurisdiction over the industry, which has long argued that tokens are not securities and as such should not be subject to SEC regulation.”