The interaction between the cryptocurrency industry and Capitol Hill is becoming more intense, as efforts to regulate cryptocurrencies grow along with their popularity. The rise in crypto industry lobbying over the past year was given some concrete parameters in February by crypto analytics firm Crypto Head. It published a report showing that the crypto companies that spent the most money on lobbying in 2021 were Robinhood, Ripple Labs, Coinbase and the Blockchain Association.. These organizations were the leaders of the lobby for the last five years as well, albeit with different classifications.
We present below the current aspect of the crypto-lobby landscape in the United States.
influence metrics
Robinhood spent $1.35 million on lobbying in 2021 and was the only crypto-related organization to spend more than $1 million. Ripple Labs, in second place, spent $900,000. The Economist estimated that a total of $5 million was spent by crypto companies on lobbying in the first three quarters of 2021.
To put this in perspective, the highest-spending lobbying group in the United States in 2020, the National Association of Realtors, spent $84.11 millionaccording to the non-profit organization Open Secrets, which provided the data for the Crypto Head report.
Blockchain Association CEO Kristin Smith said in an email to Cointelegraph that “spend is just one metric of influence, and these balances do not typically provide context on the effectiveness of the dollars spent.” Smith pointed out that the Crypto Head report “mixes companies with different focuses, multi-member trade associations, and other entities, making a one-on-one comparison difficult”.
Smith said that education is the top priority of your organization. She told Fox News last year: “Our number one priority is to help [la Secretaria del Tesoro Janet] Yellen to understand that cryptocurrencies go beyond financing criminal enterprises“.
The cryptocurrency industry has not been the only one to lobby for cryptocurrencies. The National Football League spent $600,000 lobbying Congress, the Securities and Exchange Commission, and other government agencies in 2021 with the goal of determining “whether cryptocurrencies can be an integral part of the League’s business.”, according to CNBC sources. In February, the former presidential candidate Andrew Yang launched Lobby3, a decentralized autonomous organization that will lobby in favor of Web3 and the eradication of poverty.
“Revolvers” in operation
Crypto Head noted the presence of “revolvers” in the ranks of crypto industry lobbyists, defining such “revolvers” What “government regulators, congressional staff or members of Congress who take jobs at lobbying firms, leveraging their inside knowledgeThe narrative was enriched in February with the release of the Tech Transparency Project (TTP) report “Crypto Industry Amasses Washington Insiders as Lobbying Blitz Intensifies.”
The TTP report documents the presence of “two former chairmen of the Securities and Exchange Commission (SEC), two former chairmen of the Commodity Futures Trading Commission (CFTC), and a former chairman of the Senate Finance Committee “, other former legislators and officials of various kinds for a total of “nearly 240 examples of officials with key positions in the White House, Congress, federal regulatory agencies, and national political campaigns moving in and out of the industry“.
While the use of revolvers is common practice in many industries, and not just for lobbying, TTP saw a potential conflict of interest in the move from industry to government. Specific, Five “former top executives of Circle Internet Financial,” operator of the USD Coin (USDC) stablecoin, have joined the Federal Reserve Bank of Boston “even as the company is seeking a bank charter from the Fed”. The Boston Fed is also participating in the Hamilton Project’s research on a digital dollar.
The crypto-PACs
Political Action Committees (PACs, for its acronym in English) give the cryptocurrency industry another chance to influence the political process, and there has also been a groundswell of organizations on that front.and. The American Blockchain PAC was founded in November with the goal of raising $300 million for pro-crypto candidates. However, in mid-February it was reported that he had raised less than $8,000 to date.
In January, the $10 million Protect Our Future Democratic PAC was created, and donors include FTX CEO Sam Bankman-Fried. The Gonna Make It (GMI) PAC was launched the same month with the endorsement of Donald Trump’s former communications director, Anthony Scaramucci, with a tweet that declared: “When we organize, when we mobilize, we are unstoppable. We are GMI PAC, a super PAC that will elect pro-cryptocurrency candidates in federal campaigns across the country.” Their intention is to raise $20 million.
Coinbase launched its second PAC attempt in February. He was a founding member of the Crypto Council for Innovation last April.
Politics related to cryptocurrencies in the United States promises to be interesting this year.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.