Spending on crypto lobbying surged 116% in the last year, according to a new study, and could reach $15 million or more by the end of 2022.
Crypto Head said in a report that the total spent of crypto lobbying has increased considerably in recent years.
Impact on Public Policy
Over a five-year period, crypto lobbying spending totaled $9.56 million and could reach $15 million or more by the end of 2022.
The largest percent increase was 2018, when lobbying expenditure rose from $200,000 to $920,000.
The largest real increase was from 2020 to 2021. Spending climbed 116% to $4.9 million last year.
"As a very general rule of thumb, the more money a company or organization can spend on lobbying, the greater effect it can have on public policy and decision making," the Crypto Head report said.
The online trading platform Robinhood Markets (HOOD) spent the most money on lobbying in 2021, plunking down a total of $1.35 million.
Ripple Labs, which develops the Ripple payment protocol and exchange network, spent the second-largest amount on lobbying in the U.S. in 2021, with their total reaching $900,000.
Ripple Labs created its own form of digital currency referred to as XRP.
In December 2020, the Securities and Exchange Commission filed an action against Ripple Labs and two of its executives, alleging that they raised over $1.3 billion through an unregistered, ongoing digital asset securities offering.
'The Most Influential Crypto Company'
Ripple Labs hired former SEC chairwoman Mary Jo White to defend itself against the charges, the New York Times reported in November, as well as two lobbying firms and a consulting firm staffed with former aides to both Hillary Clinton and former President Donald Trump.
Ripple Labs has spent the most money overall on lobbying since 2017, the Crypto Head report said, with a combined expenditure of $1.95 million.
"This makes Ripple Labs possibly the most influential crypto company in the USA when it comes to affecting government policy and regulation," the report said.
Coinbase, the largest crypto exchange by trading volume, is the third biggest lobbyist among crypto companies, having spent $785,000 in 2021.
Coinbase also has 23 separate lobbyists acting on its behalf, the largest number of lobbyists employed in 2021.
Of these 23, Crypto Head said, as many as 19 are so-called "revolvers" meaning that they are particularly well-connected and understand the inner workings of government decision making.
Robinhood had the second-highest number of lobbyists in 2021, with a total of 16 employed by the company, 10 of which can be considered "revolvers".
Ripple Labs came in third, hiring 12 separate lobbyists to represent their interests in Washington, eight of whom are "revolvers".
Last week, the Crypto Council for Innovation said that former World Economic Forum executive Sheila Warren will become CEO of the Washington-based lobbying group.
