Crypto Lobbying and Deregulation: Who's Really Winning?
Crypto Lobbying and Deregulation: Who’s Really Winning?
The conversation around crypto deregulation in the U.S. is heating up — and depending on who you ask, there’s either a revolution underway or a ticking time bomb. According to recent reports, crypto lobbyists are pouring record amounts of money into Washington, and while that’s winning favor with pro-crypto candidates, it’s also raising major questions about where this all leads. Let’s break it down.
Billions in Political Donations, but at What Cost?
In the 2024 election cycle alone, crypto companies and allies have reportedly spent over $119 million trying to influence federal elections. Most of this is going through non-partisan super PACs aiming to get pro-crypto candidates elected — and to kick out those who aren’t playing ball. The scale of this spending is staggering and has led to some valid concerns about how much influence the crypto industry may be buying on Capitol Hill.
Leading the charge is the pro-crypto political action committee (PAC) Fairshake, backed by giants like Coinbase, Ripple, and Andreessen Horowitz. Their goal? Push crypto-friendly candidates into office and keep crypto skeptics out.
Beyond PAC money, some major players are also throwing down serious cash for direct lobbying:
- Robinhood shelled out $1.35 million in lobbying in 2021 to help shape crypto policy.
- Ripple Labs spent $900,000 on lobbying that same year, aiming for favorable regulations.
Rushed and Unclear Regulations
All this lobbying seems to be working — but maybe a little too well. What we’re seeing now is a wave of new regulatory proposals that feel rushed, half-baked, and sometimes outright confusing. Companies and investors alike are left guessing about what’s allowed and what’s not.
Even more controversial? There are talks (still in early stages) about potentially including certain cryptocurrencies — not just Bitcoin — in something like a U.S. Strategic Reserve. That idea has sparked heated debate over how much control the government should have over crypto markets and what that means for decentralization.
Who’s Driving These Decisions?
Here are some of the biggest questions on our minds:
- Are these regulations being designed to protect consumers, or to protect large crypto firms from future competition?
- How much influence should a handful of well-funded PACs have over national policy?
- Is the speed of legislation keeping pace with the technology — or are we getting rules that don’t fit?
Our Take
Lobbying isn’t inherently evil — it’s part of how industries shape the rules they operate under. But when hundreds of millions are flowing from a single sector into election campaigns and lobbying firms, it’s worth asking who’s really writing the rules and for whose benefit.
We think the crypto industry deserves clear, fair, and well-thought-out regulations. But that process should be transparent, inclusive, and — most importantly — not rushed just because the money is there to push it through.
The bottom line: deregulation can be great for innovation. But deregulation without guardrails can be a recipe for the kind of blowups that set the industry back years. Let’s hope Washington gets this one right.