In a significant shift within the US political landscape, the crypto industry has surpassed traditional sectors in campaign spending during the 2024 election cycle, aiming to influence regulatory policies favorably.
An analysis of Federal Election Commission (FEC) filings by the blockchain analytics firm Breadcrumbs, in collaboration with FOX Business, reveals that the digital asset sector has raised at least $238 million thus far, outpacing contributions from the oil and gas, pharmaceutical industries, and major Wall Street players like Citadel.
Crypto Contributions Signal Urgent Need For Change
The substantial financial backing from the crypto industry comprises corporate donations to super Political Action Committees (PACs) and direct contributions to individual candidates from prominent industry figures.
The largest contributors include well-known entities such as crypto exchange Coinbase, blockchain payment company Ripple Labs, and venture capital firm A16z, which collectively donated around $160 million to pro-crypto super PACs supporting candidates aligned with the industry interests.
James Delmore, a research analyst at analyst firm Breadcrumbs, emphasized the significance of these donations from major industry players, telling FOX:
The crypto industry is sending a clear message to American politicians and elected officials: Current cryptocurrency regulations and policies are not working in the US.
This comes as the same donors, Coinbase and Ripple Labs, have faced increased scrutiny from the US Securities and Exchange Commission (SEC) over the past years, with lawsuits over the exchange and payments company’s crypto operations.
According to the data compiled by Breadcrumbs, out of the $238 million raised, approximately $181 million has been directed to super PACs. In comparison, $57 million has been allocated to individual candidates and their supporting committees.
Notable contributors include Ripple co-founder Chris Larsen, who has interestingly supported Vice President Kamala Harris, donating a substantial $11.7 million—largely in Ripple’s native token, XRP.
Meanwhile, Donald Trump has garnered over $22 million from various crypto industry leaders, reflecting the industry’s preference for candidates who favor less stringent regulations.
Wins Against Anti-Crypto Candidates
The political contributions from the sector are indicative of a strategic effort to gain influence in Washington, particularly in light of the Biden administration’s regulatory approach, which many in the industry view as overly restrictive.
Former President Donald Trump has openly criticized the current regulatory framework and promised to fire SEC Chairman Gary Gensler on day one if elected to another term in the White House on Tuesday, further appealing to investors.
The industry’s financial influence is largely funneled through super PACs like Fairshake, which has raised $170 million and spent $135 million in this presidential election cycle. These PACs aim to support congressional candidates who are favorable to digital initiatives.
Fairshake has already succeeded in campaigning against candidates perceived as “anti-crypto,” such as California Rep. Katie Porter and New York Rep. Jamaal Bowman, who lost their primary races after facing significant ad spending.
However, Rick Claypool, research director at Public Citizen, criticized the extensive financial contributions from the digital asset sector, suggesting they represent an attempt to “sway” US democracy toward the industry’s interests, he stated:
The millions crypto corporations and executives are spending is a brazen attempt by a relatively small sector to distort US democracy to serve its profit-maximizing whims. By spending so much, the crypto sector has made its demands for light-touch regulation and minimal enforcement impossible to ignore.
Featured image from DALL-E, chart from TradingView.com