Political Donations Soar to Record $91 Million in Cryptocurrency Ahead of 2024 Election
The cryptocurrency industry has shattered records by donating a staggering $91 million to political causes since 2023, in a bid to support governance that favors cryptocurrency. This figure surpasses the $83 million donated during the previous 2020 election cycle, as reported by Bloomberg on May 17.
The majority of these political donations come from political action committees (PACs), which pool contributions from members and distribute the funds to campaigns that align with their interests, whether in support of or against candidates, ballot initiatives, or legislation. PACs strategically allocate funds during primaries to influence the selection of candidates who are favorable to their cause.
One notable PAC, Fairshake, has managed to raise over $85 million to back political candidates who endorse cryptocurrency and blockchain technology in the upcoming election. Fairshake’s mission is to ensure that elected officials will push for the establishment and adoption of much-needed regulations for the cryptocurrency industry. The PAC recently spent more than $10 million on a successful campaign opposing a Democratic U.S. Senate candidate in California, effectively keeping her off the ballot.
Fairshake’s efforts have garnered attention from influential figures in the crypto space, including venture capitalists Marc Andreessen and Ben Horowitz, who each contributed $9 million to the PAC. Major crypto firms like Coinbase and Ripple Labs have also made substantial donations, with Coinbase giving $20.5 million and Ripple Labs contributing $20 million, according to the report. Coinbase CEO Brian Armstrong, a vocal critic of anti-crypto governance, personally donated $1 million.
The largest contributor in the crypto industry, however, is Jeffrey Yass from Susquehanna International Group. Yass, who describes himself as a libertarian, supports a range of networks from Bitcoin to ByteDance. He has already donated $70 million towards political causes, primarily backing Republican candidates.
The 2024 election holds significant implications for the future of cryptocurrency. As major jurisdictions increasingly position themselves as hubs for cryptocurrency development, it is crucial to establish robust regulatory support for the technology. The United States, in particular, plays a pivotal role in shaping the future of cryptocurrency, making the 2024 election a crucial event for the industry.
A Digital Currency Group poll reveals that the stance on cryptocurrency has become a major issue among voters in the 2024 U.S. Elections. This is driven by the divergent views held by leading political candidates. The Biden administration has displayed a stringent regulatory approach, which some perceive as being hostile towards cryptocurrency. On the other hand, the Trump administration seeks to foster a more supportive environment for crypto in the U.S. During a Q&A session, Trump expressed his desire to prevent cryptocurrency businesses from leaving the country due to perceived hostility.
However, Trump’s motives have been questioned as opportunistic, as he has raised considerably less in political donations compared to his primary competitor, the Biden administration, as reported by the Financial Times. Additionally, Trump’s ongoing legal expenses may have prompted a personal appeal to the cryptocurrency industry, stating, “If you’re in favor of crypto, you better vote for Trump.”
A Greyscale survey conducted in 2023 indicates that U.S. voters want presidential candidates to have an informed perspective on new technologies like cryptocurrency. According to a Coinbase report, approximately 20% of American adults claim to hold cryptocurrency, making a pro-crypto stance potentially influential in the upcoming 2024 election.
