Cryptocurrency industry players saw a sharp increase in their lobbying spending in 2022 in comparison to 2020. According to a recent report by the Money Mongers, crypto industry players spent a total of $25.6 million on lobbying efforts last year, which is roughly equal to the total amount spent within the five years prior combined. Blockchain Association and Coinbase were the top two spenders amongst the industry players, and each allocated an approximate $1.9 million and $3.4 million, respectively, for lobbying efforts. This move is likely due to the ambiguous crypto framework that industry players have been trying to navigate, without a set of comprehensive laws to guide their operations.

Though the US has yet to provide any definitive solutions to the irregular functioning of the cryptocurrency industry, this has not been enough to produce a halt in the lobbying efforts being applied. Lobbying groups remain undeterred and continue to strive for an influential presence in Washington D.C., as this could potentially be a critical period for the industry. The CEO of the Blockchain Association, Kristen Smith, expressed the importance of educating policymakers on the benefits of crypto networks and the promise and power of applicable technology.

However, while some industry players seem to be relatively optimistic and devoted to creating change through the use of regulators, others have chosen to take the more uncertain route by allocating their time and energy outside of the US. Bittrex, the crypto exchange, announced their decision to shut down their US arm due to the lack of clear regulatory environment, but also referencing the SEC and CFTC's enforcement actions on these types of companies.

Gabriella Kusz, CEO of the Global Digital Asset and Cryptocurrency Association, believes there will be a mixture of industry players. On one side, there is expected to be a reduction due to relocating of companies outside of the US wherein they no longer see advocating for US policy change as a central element of their business. On the other hand, companies will recognize the importance of passing cryptocurrency legislation this year to secure a window of opportunity ahead of the 2024 election cycle.

While there has yet to be any concrete move to support this industry, it is clear that the demand for definitive cryptocurrency guidelines is growing. This is reflective of the surge in lobbying spending and dedication to place a sincere emphasis on educating policymakers on the benefits of this technology. Despite the lack of ‘crypto-friendly’ regulations in the US, the industry seems to be mobilizing a fight for digital assets, which could potentially provide essential clarity to the industry in the near future.



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