Cryptocurrency companies have emerged as the leading contributors to U.S. federal election spending, with a staggering $119 million directed towards influencing the outcome of the 2024 elections, according to a report by the non-profit organization Public Citizen.
The report reveals that nearly half of all corporate money poured into this year’s U.S. elections, totaling $248 million, came from crypto backers. This positions the crypto industry as the largest corporate political spender of 2024, far outpacing other sectors like Koch Industries, which contributed $28.25 million, primarily in support of Republican candidates.
Much of this influx of cash has flowed through the nonpartisan super PAC Fairshake, which is committed to electing pro-crypto candidates and opposing those skeptical of the industry. However, the report raises concerns that this massive investment from crypto companies could lead to weakened consumer protections and reduced safeguards within the financial system.
Crypto-Influenced Lawmakers and Consumer Protection Concerns
Public Citizen’s report emphasizes that the growing sway of crypto in politics has allowed lawmakers to cater to “Big Crypto” at the expense of consumer safety. It argues that these legislators are prioritizing the interests of crypto companies, which could expose consumers to fraudulent schemes and weaken regulations meant to safeguard the broader financial system.
“Lawmakers influenced by crypto are bending over backwards to benefit Big Crypto, leading to softer regulations and reduced protections that could allow harmful innovations to exploit consumers while enriching insiders,” the report states.
Unprecedented Political Spending by the Crypto Industry
Over the past three election cycles, the crypto sector has funneled $129 million into U.S. politics, with 92% of that amount being spent in the 2024 cycle alone. This accounts for 15% of all known corporate contributions since the Supreme Court’s 2010 Citizens United ruling, which allowed for unlimited corporate spending on political campaigns.
The massive political spending by the crypto industry appears to be yielding results. For example, despite initial skepticism, Montana Senator Jon Tester voted in favor of pro-crypto legislation after crypto firms pledged support in his state’s senate race. Additionally, the House Republicans’ Financial Innovation and Technology for the 21st Century Act (FIT21) received approval from 71 House Democrats, signaling bipartisan support for legislation that could further legitimize the crypto industry.
The Role of Fairshake PAC
Fairshake PAC has been a significant beneficiary of the crypto industry’s political spending. To date, the PAC has raised $202.9 million, with over half of that amount—$107.9 million—coming directly from companies like Coinbase and Ripple. The rest has been funded by billionaire crypto executives and venture capitalists, including the Winklevoss twins and the founders of Andreessen Horowitz.
Concerns Over Corporate Influence
The growing influence of cryptocurrency in U.S. politics is not without its detractors. Critics argue that the crypto industry’s aggressive push for regulatory changes through financial contributions threatens to prioritize private profit-driven interests over public welfare. Public Citizen’s report warns that this surge in corporate spending could erode electoral norms and further consolidate power among wealthy corporate interests.
The report concludes with a warning: “We’ve had enough of elected officials turning a blind eye because influential billionaires and big businesses told them to. Lawmakers should focus on serving the public interest, free from the pressure of corporate influence.”
As the 2024 elections approach, the debate over the role of “Big Crypto” in shaping U.S. politics is poised to intensify, raising important questions about the future of political influence and consumer protection in the digital age.
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