Good morning to all blockchain and cryptocurrency enthusiasts. Recent reports indicate that Bitcoin continues its consolidation, maintaining its value around $26,779, down just 2% over the last 30 days. This minor and sluggish decline is a welcome respite from the volatile ups and downs of the previous year. According to Joe DiPasquale, CEO of BitBull Capital, Bitcoin is expected to retest the $30,000 mark in the coming days.
Amidst this market activity, it’s worth examining the lobbying efforts of the crypto industry in comparison to other industries. Year-round, industries and activist groups spend billions on federal lobbying, and crypto seems to be falling short in that department. A recent report from Open Secrets revealed that the crypto industry spent only $21.6 million on lobbying for the entire year. Although that’s an increase from previous years, it is still dwarfed by other industries.
Comparatively, the pharmaceutical industry spent a colossal $375.2 million on lobbying in 2022, while the automotive industry shelled out $82 million. Commercial banks allocated $64.6 million to lobbying in the same year. The crypto industry lags behind in lobbying efforts despite a market cap of just over $1 trillion.
Notable contributors within the crypto space include Coinbase, which alone spent $3.4 million on lobbying. The overall political contributions by the industry to election campaigns amounted to $2.3 million in 2022, a tenfold increase from 2020.
Certain crypto entities have upped their lobbying game recently. Tether’s lobbying spend rose from $100,000 in Q1 2022 to $270,000 in Q1 2023, while the Blockchain Association increased its spending from $460,000 to $490,000 for the same periods. Meanwhile, stablecoin issuer Paxos saw its lobbying expenditure rise from $50,000 in Q1 2022 to $80,000 in Q1 2023.
Looking at these figures, it’s clear that the crypto industry needs to step up its lobbying game if it wants to compete against traditional financial players who are far ahead, spending into millions for lobbying, like the American Bankers Association ($2 million) and Citigroup ($1.4 million).
On the other side of the spectrum, Ripple announced its plans to launch a central bank digital currency (CBDC) platform. This platform aims to facilitate central banks, governments, and financial institutions in issuing their own digital currencies. Ripple’s foray into the CBDC space stems from an inherent interest in digital currencies and the potential they hold for revolutionizing the global financial landscape.
In conclusion, the crypto industry must grapple with the challenging landscape of regulations and political dynamics. Stepping up lobbying efforts could be the key to gaining traction and ensuring a secure future for the industry. As digital currencies find their footing in ever-changing financial markets, the industry must showcase its resilience and adaptability to prove its worth.