As the 2024 U.S. election cycle enters its final phase, cryptocurrency firms are impacting the political landscape with their financial contributions. According to a recent report by the nonprofit watchdog Public Citizen, the crypto sector has injected nearly $119 million into the election, accounting for nearly half of all corporate political donations. Major players like Coinbase and Ripple have contributed over 80% of this sum.
This influx of funds is largely directed towards super PACs that support pro-crypto candidates. Despite increased regulatory scrutiny under the Biden administration, with Coinbase and Ripple embroiled in legal disputes with the Securities and Exchange Commission, these contributions represent a strategic effort to bolster allies and influence political outcomes.
Crypto donations account for nearly half of all corporate political contributions this cycle
Republican candidate Donald Trump has leveraged the crypto industry’s discord with Democrats to position himself as a crypto-friendly alternative, even addressing a prominent Bitcoin conference in Nashville last month. Despite this, financial support is evenly distributed across both major parties, reflecting the high-stakes nature of the upcoming elections for the House, Senate, and presidency.
The crypto industry’s financial clout is unprecedented. Since the Supreme Court’s 2010 Citizens United decision, which allowed unlimited corporate donations to political campaigns, the crypto sector has accounted for 15% of all such contributions, with more than 90% of its total donations occurring this election cycle. Rick Claypool, Public Citizen’s research director, criticized this trend, arguing that it highlights the negative impact of Citizens United by amplifying corporate influence over public discourse.
Fairshake, a leading pro-crypto super PAC, is among the most prolific spenders this election year. Funded by top crypto companies, including $49 million from Coinbase, $47 million each from Andreessen Horowitz and Ripple, and $15 million from Jump Crypto, Fairshake has amassed approximately $169 million, with over 90% from corporate donations. As of late July, Fairshake has already distributed nearly $75 million and plans to allocate $25 million to 18 House candidates and $18 million to three Senate races before the election.
