Nearly half of the corporate money donated to federal election campaigns this year — yes, nearly half — came from cryptocurrency backers, according to a recent report from consumer advocacy group Public Citizen.
But what exactly do these cryptocurrency advocates want? And where do presidential candidates Donald Trump and Kamala Harris stand on cryptocurrencies and their still uncertain regulatory future?
In this article, we analyze the positions of both candidates, as well as how much money major crypto companies have invested in political contributions this year — and what they hope to accomplish with that influence.
Cryptocurrencies have big money for the 2024 elections
Cryptocurrencies, once considered a fad and the preferred payment method of mysterious figures, have become increasingly mainstream. And their deep-pocketed devotees are spending big to gain influence in the 2024 elections.
Cryptocurrency companies and wealthy investors have invested more than $119 million directly to influence federal elections, according to an Aug. 21 report from Public Citizen, a progressive nonprofit consumer rights group based in Washington, D.C.
That money is primarily funneled to a nonpartisan super PAC called Fairshake, which has raised more than $202 million in the 2023-24 election cycle, with the goal of electing pro-crypto candidates and defeating crypto skeptics.
According to the report, cryptocurrency companies, primarily Coinbase and Ripple, are now the top corporate spenders on politics in 2024, accounting for nearly half (48%) of all corporate money donated to this year’s election. In fact, since 2010, cryptocurrency companies have been the second-largest election-related spenders, behind fossil fuel companies.
Cryptocurrency executives and advocates say tens of millions of people are interested in the digital currency. Yet a Federal Reserve survey found that only 7% of Americans owned or used cryptocurrencies in 2023.
What is the position of the 2024 presidential candidates on cryptocurrency?
As cryptocurrency lobbyists emerge as a major force in the 2024 election, Trump and Harris face increasing pressure to define their positions on the issue.
Kamala Harris
Vice President Kamala Harris has yet to take an official position on cryptocurrency during her brief campaign as the Democratic nominee, reflecting broader uncertainty within her party.
Democrats have some catching up to do in the cryptocurrency sector, especially since the Biden administration is seen by crypto advocates as hostile to the industry.
The Security and Exchange Commission’s (SEC) crackdown on the industry began about two years ago, after the collapse of FTX, the world’s third-largest cryptocurrency exchange at the time. The SEC responded by hitting major cryptocurrency companies with a wave of lawsuits, accusing them of circumventing fundamental investor protections. Two of the most high-profile cases target the world’s largest cryptocurrency exchange, Binance, and the largest U.S.-based exchange, Coinbase.
The litigation follows several failed attempts by the SEC to restrict broader adoption of crypto, including blocking approval of Bitcoin ETFs, which a federal judge struck down in 2023, paving the way for the new funds to begin trading in January 2024.
But with plenty of money and potential voters up for grabs in key states, Democratic Party leaders are working to improve their relationship with the crypto industry — even if their candidate has yet to take an official position.
In July, 14 House Democrats wrote a letter to the head of the Democratic National Committee, urging the party to adopt pro-crypto policies in its platform, according to Politico.
In mid-August, party officials held a video call with the cryptocurrency industry to “reset” their relationship with the sector. The cryptocurrency advocacy group, dubbed Crypto4Harris, held a roughly 90-minute virtual town hall meeting with a “who’s who” of Democratic lawmakers, aimed at deepening the connection with the cryptocurrency industry.
The Crypto4Harris group is also planning nationwide fundraisers in September to rally support for Harris, according to Reuters.
Donald Trump
Former President Donald Trump, who once expressed skepticism about cryptocurrencies, has repositioned himself as a pro-cryptocurrency presidential candidate.
In the summer of 2019, Trump criticized cryptocurrency on social media, saying it could be used to facilitate illegal activities like drug trafficking. And during his presidency, the Trump administration’s regulatory actions have included the SEC’s controversial lawsuit against Ripple.
But Trump has changed his tune in 2024, aiming to win over a bloc of single-issue voters and — perhaps more importantly — big donors in the cryptocurrency world.
In July, at a major cryptocurrency conference in Nashville, Tennessee, Trump said he wanted the United States to become the “cryptocurrency capital of the world” and the “global superpower” of Bitcoin.
Trump’s campaign is now accepting Bitcoin donations and recently launched digital NFT trading cards featuring the former president dancing, wearing a superhero costume, and holding Bitcoin, available for $99 on the Trump campaign website. His vice presidential running mate, Sen. J.D. Vance (R-Ohio), has also been a longtime cryptocurrency advocate.
The Republican National Committee even mentions cryptocurrency in its official platform, noting that Trump will defend the right to mine Bitcoin and “ensure that every American has the right to control their own digital assets and transact without government oversight or control.”
At the Bitcoin 2024 conference in Nashville, Trump detailed a set of crypto-friendly policies. He also claimed that the price of Bitcoin would skyrocket under his administration.
Some of Trump’s crypto policy proposals include:
- Create a government stockpile of Bitcoin: At the conference, Trump indicated that his administration would “retain 100% of all bitcoin that the United States government currently holds or acquires going forward,” adding that the digital currency would serve as “the core of the strategic national bitcoin stockpile.” The U.S. government is estimated to hold more than $5 billion worth of bitcoin as of October 2023, much of it seized as a result of criminal investigations. However, it’s unclear what this stockpile would be used for, whether it’s realistic, or whether it’s even welcomed by the broader crypto industry.
- Create a Cryptocurrency Advisory Board: In Nashville, Trump proposed launching a group called the “Presidential Advisory Council on Bitcoin and Cryptocurrencies,” whose rules would be “written by people who love your industry, not hate it.”
- Prevent the Federal Reserve from creating its own digital currency: Central bank digital currencies, known as CBDCs, are a growing trend in the rest of the world, but the idea has received strong opposition from the U.S. crypto world. The Fed has yet to decide whether it will create a fully digital version of the U.S. dollar, though it released a highly anticipated report in January 2022 detailing the potential costs and benefits. Trump has spoken out against the idea several times in 2024, including at a January campaign rally in New Hampshire, where he called it a “dangerous threat to liberty.” In May, the House passed a bill that would prohibit the Federal Reserve from creating a CBDC, though the legislation still has a long way to go before becoming law.
In conclusion
With millions of dollars at stake, cryptocurrency is a major factor in the 2024 election, influencing both presidential and primary candidates. While Trump has welcomed the crypto crowd with big promises, Harris and the Democrats are playing catch-up. Cryptocurrency advocates are pouring money into campaigns, aiming to shift regulations in their favor.
As both parties eye massive cash flows, the battle over cryptocurrency regulation is heating up, making it a key issue to watch in the final weeks leading up to the election.
