Crypto Lobbyists Spent Over $56M On Lobbying In 2023: Did It Make A Difference?
Portfolio Pulse from Murtuza Merchant
The cryptocurrency industry in the U.S. has spent $56.44 million on lobbying from 2019 to 2023, with $20.2 million spent in 2023 alone, excluding Q4. This represents 19.7% of Wall Street's lobbying spend. Companies like Andreessen Horowitz, OKX, Polygon, Solana, and Discover Crypto are active in lobbying. Coinbase is the top spender at $7.51 million, followed by the Blockchain Association and Ripple. Despite this, the SEC has increased oversight of the industry, with a focus on investor protection and legal actions against crypto firms.
November 17, 2023 | 5:34 pm
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NEGATIVE IMPACT
Coinbase, with the highest lobbying expenditure of $7.51 million from 2019 to 2023, may face increased scrutiny from regulators despite its lobbying efforts.
Coinbase's significant lobbying investment indicates its attempt to influence regulatory outcomes. However, the SEC's increased oversight suggests that lobbying may not be swaying regulatory actions as intended, potentially impacting investor sentiment and COIN's stock price negatively in the short term.
CONFIDENCE 75
IMPORTANCE 80
RELEVANCE 90
NEUTRAL IMPACT
IBM, which has engaged in crypto lobbying, may see limited short-term impact due to its broader business focus and technological diversification.
IBM's participation in crypto lobbying is acknowledged, but the company's wide-ranging technology and service offerings suggest that the direct impact of crypto regulations on IBM's stock will be limited in the short term. IBM's diversification across various technology sectors provides a cushion against sector-specific regulatory changes.
CONFIDENCE 60
IMPORTANCE 30
RELEVANCE 30
NEUTRAL IMPACT
JPMorgan, which has lobbied on crypto issues, may experience minimal impact due to its vast operations beyond the crypto sector.
JPMorgan's involvement in crypto lobbying is noted, but given its size and diversified financial services, the direct impact of crypto regulatory developments on JPM's stock is likely to be minimal. The company's extensive operations can mitigate the effects of any single regulatory change in the crypto space.
CONFIDENCE 60
IMPORTANCE 40
RELEVANCE 40
NEUTRAL IMPACT
PayPal, involved in crypto-related lobbying, may be indirectly affected by the increased regulatory scrutiny despite its diversified interests.
While PayPal is involved in crypto lobbying, the company's broad range of services and the exclusion of its non-crypto lobbying efforts from the study make the direct impact of increased SEC oversight less clear. The diversified nature of PayPal's business could buffer any negative effects from the crypto regulatory environment.
CONFIDENCE 60
IMPORTANCE 50
RELEVANCE 50