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 positively influence regulatory policy.
An analysis of Federal Election Commission (FEC) filings by blockchain analytics firm Breadcrumbs, in cooperation with FOX Business reveals that the digital assets sector has raised at least $238 million to date, surpassing contributions from the oil and gas sector, the pharmaceutical industry and major Wall Street players like Citadel.
Crypto contributions indicate an urgent need for change
The crypto industry’s substantial financial support includes 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, a blockchain payments company Ripple Labsand venture capital firm A16z, which collectively donated approximately $160 million to pro-crypto super PACs in support of candidates aligned with the industry’s interests.
James Delmore, a research analyst at analyst firm Breadcrumbs, emphasized the importance of these donations from major industry players, telling FOX:
The crypto industry is sending a clear message to US politicians and elected officials: current cryptocurrency regulations and policies are not working in the US.
This is because the same backers, Coinbase and Ripple Labs, have come under increasing scrutiny from the US Securities and Exchange Commission (SEC) in recent years. lawsuits about the exchange and payment company’s crypto activities.
According to data collected by Breadcrumbs, of the $238 million raised, approximately $181 million went to super PACs. For comparison: $57 million has been allocated to individual candidates and their supporting committees.
Notable contributors include Ripple co-founder Chris Larsen, who contributed interestingly supported Vice President Kamala Harris is donating a significant $11.7 million, much of it in Ripple’s native token, XRP.
Meanwhile, Donald Trump has raised more than $22 million from various crypto industry leaders, reflecting the industry’s preference for candidates who favor less stringent regulation.
Wins against anti-Crypto candidates
The industry’s political contributions are indicative of a strategic effort to gain influence in Washington, especially in light of the Biden administration’s efforts. regulatory approachwhich is considered overly restrictive by many in the industry.
Former President Donald Trump has openly criticized the current regulatory framework promised to fire SEC Chairman Gary Gensler on day one if he is elected to another term in the White House on Tuesday, making it even more attractive to investors.
The industry’s financial influence is largely channeled through super PACs like Fairshake, which has raised $170 million and spent $135 million in this presidential election. These PACs are intended to support congressional candidates who view digital initiatives favorably.
Fairshake has already managed to campaign against candidates seen as “anti-crypto,” such as California Rep. Katie Porter and New York Rep. Jamaal Bowman, who lost their primary races after facing significant ad spend .
However, Rick Claypool, research director at Public Citizen, criticized the extensive financial situation contributions from the digital asset sector, suggesting that they represent an attempt to “swing” American democracy toward the industry’s interests, he stated:
The millions of crypto companies and executives issuing this is a brazen attempt by a relatively small industry to distort American democracy to serve its profit-maximizing whims. By spending so much, the crypto sector has made its demands for light regulation and minimal enforcement impossible to ignore.
Featured image of DALL-E, chart from TradingView.com