As the 2024 U.S. election enters its home stretch, cryptocurrency companies are opening their wallets in an attempt to influence the outcome.
Nearly half of all corporate money flowing into elections came from the cryptocurrency industry, It is reported This week’s report comes from the nonprofit watchdog group Public Citizen. The amount, approximately US$119 million, was raised by a number of donors, including Coin library Ripple accounts for more than 80% of donations.
Much of the money will go to super PACs backing pro-crypto candidates running for office this year. The industry faces increased scrutiny during the Biden administration, and Coin library and ripple are two of the largest players in legal battles with the U.S. Securities and Exchange Commission.
Donald TrumpRepublican candidates are trying to exploit the rift between the crypto industry and Democrats to position themselves as pro-crypto alternatives, even keynote speech Last month’s big Bitcoin conference in Nashville, Tennessee. But money is flowing into both parties, as big races remain in the House, Senate and presidency.
No other industry can keep up with cryptocurrency. These include oil companies and banks, which have historically been important political contributors.
According to a report by Public Citizen, the cryptocurrency industry has accounted for 15% of all disclosed donations since the 2010 Supreme Court Citizens United ruling opened the door to unlimited corporate funding in U.S. elections. Over 90% of corporate crypto cash was raised during this election cycle.
Rick Claypool, the author of the latest report and director of research at Public Citizen, said that crypto companies investing heavily in “silencing critics of cryptocurrencies and elevating their supporters exemplify everything that was wrong with the Supreme Court’s disastrous Citizens United decision.”
Claypool’s research shows that cryptocurrency companies are second only to fossil fuel groups in total election-related spending since the 2010 ruling.
Fairshake is the most popular pro-cryptocurrency bipartisan super PAC. Funded by some of the industry’s leading companies, it has become one of the highest-spending PACs this year.
Much of the group’s funding can be traced to four sources. Coinbase donated $49 million, venture capital firm Andreessen Horowitz donated $47 million, Ripple donated $47 million, and Jump Crypto donated $15 million. Fairshake and its two affiliated PACs have raised about $169 million in total, more than 90% of which came directly from businesses.
Other funding comes from various donors. For example, Coinbase CEO Brian Armstrong donated $1 million, while the Winklevoss twins donated $5 million.
Filings with the Federal Election Commission Tuesday showed Fairshake paid out nearly $75 million in July. Data compiled from OpenSecrets’ FEC report Fairshake has nearly $120 million in its coffers ready for deployment with less than 80 days until the November election, it said.
The super PAC has pledged $25 million from that cash pool to 18 general election House candidates, split among nine Democrats and nine Republicans. It pledged another $18 million to three Senate races.
“The amount is jaw-dropping”
The industry’s strategy paid off in the primaries.
Public Citizen’s report found that of the 42 primary elections that attracted funds from cryptocurrency-backed super PACs, candidates selected by the cryptocurrency industry won 36. position.
“While Fairshake and its affiliates spend money to influence the campaign, whether by attacking cryptocurrency skeptics or supporting cryptocurrency proponents, these ads make no mention of cryptocurrency at all,” Claypool said.
In congressional races in New York and California, cryptocurrency-funded campaign ads targeted candidates with traditional political attacks but made no mention of cryptocurrencies.
“The only reason cryptocurrency is a hot topic in this election cycle is because crypto businesses are spending eye-popping amounts of money to make themselves impossible to ignore,” Claypool said.
Despite the tensions that have arisen in recent years, Democrats are trying to show they can find common ground with the industry.
Senate Majority Leader Chuck Schumer, D-N.Y., launched a A virtual town hall called “Crypto4Harris” August. He said at the event that the cryptocurrency law could pass the Senate before the end of the year.
Vice President Kamala Harris The campaign is actively working to develop a platform position around the cryptocurrency industry and recalibrate the approach taken by the president Joe Biden, Several leading Democrats told CNBC. Harris’ campaign on Tuesday declare Plans to take a stance supporting cryptocurrency innovation.
Coinbase Chief Policy Officer Faryar Shirzad praised the move, write on X He “had the pleasure of participating in numerous discussions” with Harris’ team. He described the approach as “constructive” and said “dialogue is an important first step.”
Meanwhile, money from digital asset executives has poured into Trump’s campaign since he leaned toward becoming a pro-cryptocurrency candidate.
Trump takes an increasingly optimistic approach talking points He has talked about cryptocurrencies on the campaign trail and announced in late July that he had raised $25 million from cryptocurrency interests, although CNBC has not independently confirmed that number.
Cryptocurrency executives show up at Trump fundraiser in san francisco and NashvilleThe Republican candidate told attendees that if he returns to the White House, he will ensure that the federal government never sells its Bitcoin holdings.
“This afternoon, I will lay out my plan to ensure that the United States becomes the cryptocurrency capital of the planet and the Bitcoin superpower of the world,” Trump said. “We will get it done.”
