- The No. 1 crypto candidate is Trump
- Why the future of cryptocurrency regulation has become a hot political issue
- Cryptocurrencies account for nearly half of all corporate election spending in the 2024 cycle
The US election is approaching and political polarization is once again coming to the forefront. The country remains deeply divided, with the electorate split almost 50/50 along party lines. The presidential race is drawing to a close and, for the first time, the outcome will have significant implications for the future of the digital asset industry.
This raises an important question: will the cryptocurrency sector have enough clout to sway the election?
Many believe that yes, it will be enough. Elections are won with money, not just ideas. This is the reality of the political landscape. Politicians can be influenced, if not bought directly, and the current election cycle marks the first time the crypto industry has had a well-funded, organized lobby to support its interests. Cryptocurrency-focused political action committees (PACs) have raised $183 million to influence the 2024 US election, according to followthecrypto.org.
US election: cryptocurrency distribution by party.
The big players in Silicon Valley are seizing this opportunity to use their wealth and influence to shape future policy on digital assets and artificial intelligence.
The No. 1 crypto candidate is Trump
Donald Trump, the Republican candidate, has applauded the effort, pledging strong support for the crypto industry. His proposals include overhauling US energy policy to position the country as a world leader in bitcoin mining, ending “Operation Chokepoint 2.0,” removing Gary Gensler as SEC chairman, and even creating a national strategic bitcoin “reserve.” The crypto industry has reacted enthusiastically, pouring money into his campaign. Whether he will fulfill these promises remains to be seen.
Why the future of cryptocurrency regulation has become a hot political issue
The answer is simple: money. Not only are large sums of money being funneled into this election, but the growing institutional interest in the industry itself, spurred by the emergence of Bitcoin and Ethereum ETFs, is making even the most ardent skeptics think twice. Larry Fink, chairman and CEO of BlackRock, the world’s largest asset manager, has become a leading advocate, touting the benefits of bitcoin and blockchain technology.
Cryptocurrency has become an inherently political phenomenon, challenging the very foundations of centralized markets. The principles of decentralization, transparency, financial inclusion, autonomy and ownership have far-reaching implications for all aspects of financial life.
Politicians tend to follow the money, and voters often cast their votes based on economic interests. Americans’ penchant for libertarian ideals now intersects with the struggle over the future of digital assets. The political climate is increasingly favorable to sensible regulation, and numerous bills related to cryptocurrencies are circulating on Capitol Hill.
Could this US election finally push cryptocurrency into the mainstream? Given the stakes, it certainly seems possible.
Cryptocurrency companies account for nearly half of all corporate spending on elections in the 2024 cycle
Nearly half of all corporate political contributions in the 2024 election cycle came from cryptocurrency companies, according to a report released Wednesday by Public Citizen, a corporate influence watchdog organization.
The Public Citizen report, based on data provided by government transparency group OpenSecrets, found that cryptocurrency companies like Ripple and Coinbase currently account for 48% of corporate spending on US elections. This amounts to $119 million out of a total of $248 million.
Corporate contributions impacting federal elections after Citizens United singled out contributions from crypto corporations. Data source: OpenSecrets.org
The vast majority of these donations went to PACs. Specifically, to Fairshake, a non-partisan super PAC focused on electing crypto-friendly candidates on both sides of the aisle, as well as suppressing the bids of crypto skeptics.
According to the Public Citizen report, $107.9 million of the $203 million raised by Fairshake came directly from cryptocurrency companies, with the rest coming from large donations made by wealthy and well-known personalities in the tech and crypto industries, including the Winklevoss twins and Coinbase CEO Brian Armstrong.
The author of the Public Citizen report, research director Rick Claypool, described the crypto industry’s political spending as “unprecedented.” Direct spending by cryptocurrencies over the past three election cycles totaled $129 million, or 15% of all known corporate contributions since 2010, when the US Supreme Court ruled in Citizens United v. Federal Election Commission that corporations have a First Amendment right to make unlimited donations to candidates through PACs.
According to the report, the mining industry alone has spent more than cryptocurrency companies since 2010, donating $176 million dollars to politician-friendly candidates over the past 14 years.
Contributions from leading corporate sectors. Data source: OpenSecrets.org
