US Encryption Industry Experiences Increase in Lobbying Fees

02/28/2023 11:02 • Tech Trends • 82 views

On February 28, according to the data of OpenSecrets, a non-partisan non-profit organization, the lobbying fee of the US encryption industry reached US $25.57 million in 2022, an increase of 121.41% compared with US $11.54 million in 2021. Coinbase paid US $3.3 million to 32 lobbyists, Robin Hood paid US $1.84 million to 20 lobbyists, and Binance.US paid US $0.96 million in this respect, ranking ninth on the list.

Data: In 2022, the lobbying fee of the US encryption industry reached US $25.57 million, with a year-on-year increase of 120%

Analysis based on this information:

The US encryption industry has seen a significant increase in lobbying fees this year, reaching a total of $25.57 million as reported by OpenSecrets. This marks a remarkable 121.41% increase compared to $11.54 million in 2021. The rise in lobbying efforts can be attributed to the increasing importance of encryption technologies in security and privacy matters, as well as the growing interest of cryptocurrency companies in shaping regulatory frameworks.

Three companies that stand out in terms of lobbying expenses are Coinbase, Robin Hood, and Binance.US. Coinbase, one of the largest cryptocurrency exchanges in the world, paid $3.3 million to 32 lobbyists. Robin Hood, a popular trading app, paid $1.84 million to 20 lobbyists, while Binance.US, the US subsidiary of the world’s largest cryptocurrency exchange, spent $0.96 million on lobbying efforts.

The fact that cryptocurrency companies are investing in lobbying efforts is not surprising given the regulatory uncertainty and lack of clarity that has plagued the industry for years. As the adoption of crypto and blockchain technologies continue to soar, concerns over safety, stability, and regulatory oversight have become even more pressing. Companies with vested interests in the success of the industry are looking to influence policymaker’s decisions to create a more favorable operating environment.

The increase in lobbying fees also highlights the importance of organizations like OpenSecrets that provide transparency into the world of political lobbying. Without such tools, it would be much harder to get a clear picture of the extent of influence that certain industries and companies wield over lawmakers and policy-making bodies.

In conclusion, the rise of encryption industry lobbying fees is a clear indication of the growing significance of the industry in the US and the world. The fact that major players in the crypto space are spending significant funds on lobbying efforts underscores the need for a clear and coherent regulatory framework to govern the industry. While the motivations of these companies may be self-serving, such efforts can have a positive impact by shaping policies that benefit both the industry and consumers.

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