In 2023, the U.S. cryptocurrency industry has successfully spent more than $20 million on lobbying efforts, a significant increase from the $14.9 million recorded in 2022, making it the highest level of expenditure since the industry’s inception.
The spending surge comes amid heightened political interest in the sector, driven by the U.S. Securities and Exchange Commission’s (SEC) attempts to bring greater regulation to the sector.
Cryptocurrency trade associations have spearheaded the lobbying movement, including the Blockchain Association, Coin Center and the Chamber of Digital Commerce, all of which have increased their budgets since the beginning of the Biden administration.
The intensity of lobbying demonstrates the long-term commitment of the industry and reflects a common effort to reduce regulatory uncertainty for all market participants. Increased openness and transparency regarding policy changes will also provide investors with greater confidence in the crypto space, leading to further growth opportunities.
As the industry’s leading associations now strive to collaborate on a range of topics, including taxation, digital asset securities, decentralized finance and asset management, this investment is expected to bring more comprehensive and innovative regulations to an industry prone to evolving technology and changing market needs.