The role of cryptocurrency in political fundraising has become increasingly significant as donations for the 2024 US elections have exceeded $190 million. With approximately $130 million of this total earmarked for congressional and House races, the crypto industry’s involvement in politics is capturing widespread attention.
Surge in Crypto Donations
Crypto political contributions have reached over $190 million for the ongoing presidential election cycle, with a notable $130 million allocated to congressional races, including primaries. This uptick in donations comes amidst heightened discussions around the role of cryptocurrency in political campaigns.
Ripple co-founder Chris Larsen has been at the center of controversy, having donated more than $10 million to Kamala Harris’s campaign. This move has sparked outrage within the XRP community, particularly given the Biden administration’s ongoing regulatory scrutiny of Ripple and its XRP token. Ripple co-founder Brad Garlinghouse criticized the administration’s stance, urging for a change in direction regarding crypto regulation.
Trump’s PAC and Crypto Support
Former President Donald Trump’s political action committee (PAC) has also made headlines, raising approximately $7.5 million in cryptocurrency donations. Contributors to the Trump 47 joint fundraising committee have utilized various cryptocurrencies, including Bitcoin, Ethereum, and XRP, along with stablecoins like Tether (USDT) and USDC.
The PAC Fairshake has been one of the largest spenders this election cycle, focusing on close House races. In September, the committee disbursed $29 million, with $20 million going to two affiliated PACs: $15 million to the Defend American Jobs PAC, which promotes pro-crypto policies, and $5 million to Protect Progress, supporting Democratic candidates.
James Delmore, a crypto market analyst, emphasized the significance of Fairshake’s strategy, stating that their donations aim to secure pro-crypto representatives in key congressional seats while maintaining California’s status as a crypto industry hub.
Market Reactions and Future Implications
The cryptocurrency market appears to respond positively to the shifting political landscape, particularly with Trump’s rising odds for re-election. According to Polymarket data, Trump’s chances of winning have surged to 63.5%, which has corresponded with a rally in Bitcoin prices, recently peaking at $69,000. The momentum has also lifted altcoins, although the market faces resistance at crucial levels, awaiting a significant catalyst.
Market analysts remain optimistic that a Trump victory could bolster the crypto sector during his next term, potentially fostering a more favorable regulatory environment.
Conclusion
The growing influence of cryptocurrency in political donations reflects its deepening integration into mainstream finance and governance. As the 2024 US elections approach, the impact of these contributions on both political outcomes and market dynamics will be closely monitored by investors and industry stakeholders alike.
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