• Crypto lobbying expenditure has increased by 1,130% in the last five years.
• Major players in the crypto space are investing significant amounts of money into efforts to sway politicians and regulators.
• Challenges and setbacks affecting the industry’s credibility have led to a surge in lobbying expenditure.
Exponential Increase of Crypto Lobbying Expenditure
Crypto lobbying expenditure has greatly increased over the last five years, more than doubling every year. This surge reflects increasing regulatory scrutiny of crypto, as major players in the space invest money into efforts to sway politicians and regulators. The challenges and issues that have affected the industry’s credibility have also driven up the amount spent on lobbying activities.
What Causes Cryptocurrency Lobbying?
Louis Schoeman, an expert at Forex Suggest, provided his insights on why crypto lobbying is so high. He pointed out that scandals like FTX’s founder Sam Bankman-Fried being indicted, along with catastrophic firm crashes, plunging cryptocurrency values, plummeting funding levels, and users fleeing the industry for safer investments have all contributed to the industry’s need for rectification – resulting in significantly higher lobbying expenditure from crypto firms attempting to influence regulatory processes. The threat of SEC lawsuits against major crypto companies such as Coinbase and Binance has also encouraged more spending on influencing regulations.
Research Findings
Forex Suggest research found that crypto lobbying expenditure in America had risen by an incredible 1,130% over five years. This growth highlights just how much effort is being put into trying to shift regulation related to cryptocurrencies in order to protect their interests.
Conclusion
The rapid increase of cryptocurrency lobbying expenditure shows just how serious this new technology is taken by those who stand to benefit from it most – namely major players within the industry itself . In spite of recent issues faced by cryptocurrencies , they continue to move forward with ever-increasing support from those who understand its potential benefits .
Takeaway
Crypto companies are investing heavily into efforts designed to influence politicians and regulators due to increasing regulatory scrutiny . Despite facing numerous challenges , these companies are determined not only survive but thrive . As a result , there has been an exponential rise in cryptocurrency lobbying expenditures over the past five years .