The lobbying expenditure of the encryption industry in 2022 reached US $21.55 million, a record

On February 19, it was reported that cryptocurrency company’s travel expenses in Washington in 2022 reached 21.55 million US dollars, setting a record, of which Coinbase ranked the first. According to the data of OpenSecrets, a research institute focused on tracking political contributions, the lobbying expenditure of encryption companies in 2022 exceeded twice that of 2021 ($8.29 million).

Interpretation of this information:

The reported increase in travel expenses of cryptocurrency companies in Washington in 2022 has raised eyebrows and set a record. Coinbase tops the list of companies that spent the most on lobbying efforts during this period. The data is from OpenSecrets, a research institute that tracks political contributions. The lobbying expenditure in 2022 for encryption companies is more than twice that of the previous year.

This news raises several questions, such as what are the priorities and political goals of the cryptocurrency companies? What do they hope to achieve through such high lobbying expenditure? It is clear that these companies view political lobbying as essential in gaining regulatory freedom and influence in the US government. As the cryptocurrency industry continues to grow, these companies seek to legitimize their presence and prevent possible regulatory scrutiny.

The reasons behind the increase in such expenses are also interesting. While it is hard to draw direct cause-effect relationships, it is likely that the development of the infrastructure bill played a significant role in this surge. The bill proposed several regulatory changes that could potentially affect cryptocurrency trading, mining, and taxation. Hence, it is not surprising that these companies see increased lobbying as essential to protecting their interests.

Additionally, we can infer that the profits made during the cryptocurrency market’s boom in recent years have provided companies with greater financial resources to invest in lobbying in Washington. While it may be argued that these companies are only serving their financial interests, we must also recognize that they are attempting to drive innovation in the financial industry.

In conclusion, the increase in lobbying expenditure by cryptocurrency companies in Washington reflects the growing importance of these companies in mainstream finance. Their lobbying efforts signify an attempt to legitimize their presence and protect their interests. We can also see the impact that the regulatory environment can have on a highly dynamic and volatile industry. As such, it is not unlikely that the lobbying expenditure by these companies will continue to increase in the coming years.