As the 2024 US elections reach home, crypto companies are opening their wallets to influence the outcome.
About half of all corporate money that goes into elections comes from the crypto industry. according to one report This week, Public Citizen is a non-profit organization. About $119 million was raised from a mix of donors Coinbase and Ripple accounts for more than 80% of donations.
Most of the money will go to super PACs that support cryptocurrency advocates running for office this year. The industry faced heightened scrutiny during the Biden administration and Coinbase and Fluctuation are two of the biggest players involved in legal battles with the Securities and Exchange Commission.
Donald TrumpThe Republican candidate tried to exploit the rift between the crypto industry and Democrats by presenting himself as a cryptocurrency supporter and even keynote A major bitcoin conference in Nashville, Tennessee last month. But with the House, Senate and presidency all up for grabs, money flows to both parties.
No other sector is keeping pace with cryptocurrency. This includes oil companies and banks, which have historically made large political contributions.
Since 2010, when the Supreme Court’s Citizens United decision opened the door to unlimited corporate money in US elections, the crypto sector has accounted for 15% of all disclosed contributions, according to a Public Citizen report. More than 90% of the corporate crypto money raised was brought in this election cycle.
Rick Claypool, director of research at Public Citizen, which authored the latest report, said the “big money invested by crypto companies to silence crypto critics and elevate supporters epitomizes everything wrong with the Supreme Court’s disastrous Citizens United decision.”
Claypool’s research shows that crypto corporations are second only to fossil fuel conglomerates in total election-related spending since the 2010 ruling.
Fairshake is the most popular of the pro-crypto, bipartisan super PACs. It is funded by some of the industry’s leading companies and has become one of the top-spending PACs this year.
The majority of the group’s funds can be attributed to four sources. Coinbase provided $49 million, venture firm Andreessen Horowitz $47 million, Ripple $47 million, and Jump Crypto $15 million. In total, Fairshake and its two affiliated PACs have raised nearly $169 million, with more than 90% directly from corporations.
Other funds came from a mix of donors. For example, Coinbase CEO Brian Armstrong gave $1 million, and the Winklevoss twins gave $5 million.
Application to the Federal Election Commission Fairshake paid about $75 million during the month of July, it showed on Tuesday. Data compiled from FEC reports by OpenSecrets Fairshake’s coffers show it has about $120 million to deploy with less than 80 days to go before the November election.
The super PAC has pledged $25 million of that money to be split between nine Democrats and nine Republicans to 18 House candidates in the general election. He allocated another $18 million to three Senate races.
‘Eye-catching sums’
The industry’s strategy paid off in the primaries.
A report by Public Citizen found that out of 42 primary races that attracted money from cryptocurrency-backed super PACs, the candidate chosen by the crypto industry won 36. However, many of them do not openly promote their position on crypto.
“When Fairshake and its affiliates spend money to influence the contests, either by attacking crypto skeptics or boosting crypto supporters, the ads don’t mention crypto at all,” Claypool said.
In congressional races in New York and California, cryptocurrency-funded campaign ads attacked the target candidates with traditional political jabs, and crypto was not mentioned at all.
“The only reason crypto is a hot topic this election cycle is because crypto businesses are spending eye-popping amounts to ignore themselves,” Claypool said.
Democrats are trying to show that they can find a way with the industry, despite the tensions that have arisen in recent years.
Senate Majority Leader Chuck Schumer, D-N.Y., began a A virtual town hall called “Crypto4Harris”. in August. He said at the event that the cryptocurrency law could pass the Senate by the end of the year.
vice president Kamala Harris The campaign team is actively working to build a platform position around the crypto industry and rebuild the approach adopted by the President Joe Biden, several key Democrats told CNBC. Harris’ campaign on Tuesday announced plans to adopt a pro-crypto innovation stance.
Coinbase Chief Policy Officer Faryar Shirzad praised the move. Write on X he is “pleased to engage in a series of discussions with the Harris team”. He called the approach “constructive” and said that “dialogue is an important first step.”
Meanwhile, money has flowed into Trump’s campaign from digital asset managers as the pro-crypto-currency candidate leans forward.
Trump has increasingly embraced the promotion talking points He talked about cryptocurrencies on the campaign trail, and he announced in late July that he had raised $25 million from cryptocurrency interests, a figure CNBC has not independently confirmed.
Cryptocurrency executives arrive at fundraisers for Trump in San Francisco and NashvilleThe Republican candidate told an audience of conference attendees that if he is returned to the White House, he will make sure the federal government never sells bitcoin holdings.
“This afternoon I am laying out my plan to ensure that the United States is the cryptocurrency capital of the planet and the bitcoin superpower of the world,” Trump said. “And we’re going to make it happen.”