Cryptocurrency companies have spent a staggering $119 million campaigning in the political landscape ahead of the 2024 U.S. election. That’s nearly half of all corporate contributions to the election, which total nearly $250 million.
Leading the way, companies like Coinbase and Ripple are spending huge amounts of money on super PACs that seek to promote the candidacies of pro-cryptocurrency politicians while undermining skeptics. The spending spree is raising concerns about the influence of money in politics.
US Elections: Cryptocurrency Spending on the Rise
Public Citizen’s report highlights that the crypto sector has become so dominant in corporate political spending that it eclipses even the spending prowess of seasoned heavyweights such as Koch Industries.
Data Source: OpenSecrets.org
Since the 2010 Citizens United decision that allowed unlimited corporate contributions, 15% of all corporate political spending has come from crypto companies – and 92% of that amount has come from this year alone.
Nearly $114 million has flowed to Fairshake PAC, the super PAC dedicated to pro-crypto initiatives, this cycle, more than any other corporate fund recipient.
Data source: OpenSecrets.org. Chart: Public Citizen
This is no accident, it’s part of a strategic effort by the crypto industry in its quest to shape the political discourse around digital assets. As Public Citizen’s research director Rick Claypool put it, “the only reason crypto is a campaign issue this year is because crypto companies are spending a ton of money trying to make themselves impossible to ignore.”
The spending was seen as the industry’s best attempt to lock in regulations while trying to contain almost daily declarations of danger from senators like Elizabeth Warren and Sherrod Brown.
Political implications
The implications of this spending are enormous. With such financial support, pro-cryptocurrency candidates have a greater chance of winning, which could change the policies that govern the sector.
The former president has already taken a liking to this crypto narrative, with Donald Trump promising that if he emerges – which he indeed will – the rules will be written by the industry’s friends, not those who want to destroy it.
On the Democratic side, there are signs of a possible policy overhaul, especially if Kamala Harris is nominated. Her advisers have talked about policies that would allow the cryptocurrency industry to thrive, a change many in the crypto community have been waiting for.
Future prospects
The spending of the cryptocurrency industry will set the roadmap for what will follow in the next election. With other industries following suit, policies will eventually be changed overnight as others use their financial power to set their hearts on the political prophecy of their choice.
Featured image from The Banker, chart from TradingView
