• Crypto lobbying expenditure has increased by 1,130% in the last five years.
• The surge in lobbying expenditure reflects increasing regulatory scrutiny of crypto.
• Major players in the crypto space are investing significant amounts of money into efforts to sway politicians and regulators.
Crypto Lobbying on the Rise
The crypto industry is facing greater regulatory scrutiny, leading major players in the space to invest heavily in lobbying efforts. Over the past five years, crypto lobbying expenditure has increased by a staggering 1,130%. This trend indicates that businesses are striving to shape regulations to their favor.
What’s Driving The Surge?
Louis Schoeman, a crypto expert at Forex Suggest, commented on this rapid increase of spending on lobbying activities. He noted that several scandals and catastrophic firm crashes have damaged the industry’s credibility, sparking an effort among firms to restore public trust and lobby for favorable regulations. Scandals such as FTX and legal action from the Securities and Exchange Commission (SEC) could challenge existing laws regarding cryptocurrency regulation.
Exponential Growth
Research conducted by Forex Suggest shows that crypto lobbying expenditure in the US has grown exponentially over the past 5 years – more than doubling every year since 2018. This trend suggests that more firms are seeking to influence policy makers and regulators as they navigate an increasingly complex landscape of cryptocurrency regulation.
Conclusion
The data paints a clear picture: businesses are increasingly striving to shape regulations through heavy investment into lobbying activities as they seek favorable outcomes for their operations within a rapidly changing regulatory environment.
Takeaways
• Crypto lobbying expenditure has increased by 1,130% over the last five years
• Scandals such as FTX have damaged public trust within the industry • Businesses are seeking to influence policy makers and regulators