The Most Influential Crypto Lobbyists

Understanding the inner workings of government, especially Congress, makes former public officials highly valuable to lobbying firms. There’s a clear trend of influential professionals moving from public service to the private sector, where large financial conglomerates and holdings eagerly employ them.

According to analytics service Social Capital Markets, cryptocurrency lobbying expenditures in the U.S. have surged by an astounding 1,386% since 2017. From 2022 to 2023 alone, nearly 60% of total historical lobbying spending occurred.This research is based on data from OpenSecrets, a nonprofit organization that monitors financial flows in American politics.

Crypto lobbying expenditure growth. Source: socialcapitalmarkets.net

Here’s the current list of companies that have made the largest investments in cryptocurrency lobbying:

1. Apollo Global Management: An American corporation specializing in alternative asset investments. Its Australian subsidiary, Apollo Crypto, spent $7.56 million on lobbying in 2023, employing 104 former government officials. 

Apollo Global’s aggressive lobbying is justified by the success of its Apollo Crypto platform, which was launched in 2021 and has already delivered a 158.5% return to investors—well above the market average. This success demonstrates the company’s significant influence on local regulations and the crypto landscape.

2. Managed Funds Assn (MFA): This organization provides institutional portfolio management services. 

In 2023, the MFA allocated $4.1 million to hire 32 lobbyists, 25 of whom had previous government experience, to better influence the legislative process. The association’s goal is to shape cryptocurrency regulation to ensure it meets the transparency standards seen in TradFi.

3. Coinbase: It's been widely known that Coinbase CEO Brian Armstrong leverages the expertise of former government officials for lobbying. However, the actual amounts spent have only recently been revealed.

In 2023, Coinbase spent over $2.86 million lobbying for clearer regulatory frameworks for the crypto industry. The company engaged a team of 39 lobbyists, 32 of whom were former government officials, aiming to secure favorable conditions for its business expansion. Coinbase is a market leader, ranking second in trading volume globally after Binance.

The most influential crypto lobbyists. Source: socialcapitalmarkets.net

Other major players in crypto lobbying include:

• CME Group, which has been actively advocating for BTC and ETH derivatives;
• Square Inc (now Block Inc), led by Jack Dorsey, which has championed the interests of blockchain companies;
• Ripple Labs, which fought regulatory battles, particularly in the U.S. Congress, to defend its business.

Surprisingly, Binance, one of the largest crypto exchanges globally, spent just $1.2 million on lobbying in 2023 and did not rank in the top 10. This might be due to Binance’s new CEO, Richard Teng, who has prior government experience and may be able to advance the company’s interests without relying heavily on external lobbying support.