watch now As the 2024 U.S. elections reach their home stretch, crypto companies are opening their wallets to try and influence the results.
Nearly half of all the corporate money flowing into the election has come from the crypto industry, according to a report this week from the nonprofit watchdog group Public Citizen.
Most of the money is going to super PACs that are backing pro-crypto candidates running for office this year.
More than 90% of the corporate crypto cash that’s been raised was brought in this election cycle.
Coinbase has contributed $49 million, venture firm Andreessen Horowitz has donated $47 million, Ripple has given $47 million and Jump Crypto put in $15 million.
Public Citizen’s report found that of the 42 primary races that attracted money from crypto-backed super PACs, the candidate picked by the crypto industry won 36.
“When Fairshake and its affiliates spend money to influence races, either by attacking crypto skeptics or boosting crypto supporters, the ads don’t mention crypto at all,” said Claypool.
Vice President Kamala Harris’s campaign team is actively working to craft a platform stance around the crypto industry and reset the approach taken by President Joe Biden, several key Democrats told CNBC.
Watch now.
In 2024, the U.S. s. As the elections approach their conclusion, cryptocurrency companies are opening their wallets in an attempt to sway the outcome.
A report released this week by the nonprofit watchdog group Public Citizen states that the cryptocurrency industry has contributed nearly half of all corporate money going into the election. A variety of donors helped raise the total, or about $119 million, with Coinbase and Ripple contributing more than 80% of the funds.
The vast majority of the funds will go to super PACs supporting pro-crypto candidates this year. Coinbase and Ripple are two of the largest companies that have been involved in legal disputes with the Securities and Exchange Commission. The industry has been under increased scrutiny during the Biden administration.
By positioning himself as the pro-crypto option and even keynoting a significant bitcoin conference in Nashville, Tennessee, last month, Republican nominee Donald Trump has attempted to capitalize on the division between the crypto industry and the Democrats. The House, Senate, and presidency are still up for grabs, though, and money is flowing into both parties.
watch now.
Crypto is gaining traction unlike any other industry. This includes banks and oil companies, which have long been significant political donors.
Since 2010, when the Citizens United decision by the Supreme Court allowed for unlimited corporate funding in the U.S. s. Public Citizen’s report states that 15% of all disclosed contributions for the elections have come from the cryptocurrency sector. This election cycle has brought in over 90% of the corporate cryptocurrency capital raised.
The recent report’s author, Rick Claypool, research director at Public Citizen, claimed that the enormous sums of money donated by cryptocurrency companies “embodies everything that is wrong with the Supreme Court’s disastrous Citizens United decision—namely, to silence crypto’s critics and elevate its backers.”. “.
According to Claypool’s research, since the 2010 ruling, the amount of money spent on elections by crypto corporations has surpassed only that of fossil fuel conglomerates.
Pro-crypto, bipartisan super PAC Fairshake is the most well-liked. It’s one of the highest-spending PACs this year and is supported by some of the biggest businesses in the field.
Four sources account for the lion’s share of the group’s funding. Venture capital firm Andreessen Horowitz has contributed $47 million, Coinbase has contributed $49 million, Ripple has contributed $47 million, and Jump Crypto has contributed $15 million. Around $169 million has been raised by Fairshake and its two connected PACs, with over 90% of that amount coming from businesses.
A variety of donors have contributed additional money. For instance, Coinbase CEO Brian Armstrong contributed $1 million, whereas the Winklevoss twins contributed $5 million.
According to a document filed on Tuesday with the Federal Election Commission, Fairshake disbursed nearly $75 million in July. Less than 80 days remain until the November election, according to data gathered by OpenSecrets from FEC reports, suggesting that Fairshake has almost $120 million available for use.
From that pot of money, the super PAC has promised to donate $25 million to 18 House candidates in the general election, nine of whom are Democrats and nine of whom are Republicans. It has also committed $18 million to three Senate contests.
“Sums that pop.”.
In the primaries, the industry’s plan worked.
“Ads that use money from Fairshake and its affiliates to influence races don’t even mention cryptocurrency—they either attack proponents of cryptocurrency or bolster those who oppose it,” Claypool said.
The campaign commercials funded by cryptocurrency in the New York and California congressional races used conventional political rhetoric to disparage the targeted candidates without mentioning cryptocurrency.
According to Claypool, “the only reason cryptocurrency is a hot topic in this election cycle is because cryptocurrency businesses are spending eye-popping sums to make themselves impossible to ignore.”.
In spite of the tension that has surfaced in recent years, Democrats are attempting to demonstrate that they can still work together with the industry.
Democratic Senator Charles Schumer is the majority leader in the Senate. Y. launched a virtual town hall in August called “Crypto4Harris.”. During the event, he stated that a crypto law might be approved by the Senate before the year ends.
Several prominent Democrats told CNBC that Vice President Kamala Harris’s campaign team is hard at work developing a platform position regarding the cryptocurrency industry and reversing President Joe Biden’s approach. The Harris campaign declared on Tuesday that it would take a pro-crypto innovation position.
Faryar Shirzad, Chief Policy Officer of Coinbase, commended the action, noting on X that he’s been “glad to take part in a number of discussions with the Harris team.”. According to him, the dialogue was a crucial initial step and the approach was “constructive.”. ****.
Executives in the digital asset space have contributed money to Trump’s campaign since he adopted a pro-crypto stance.
Although CNBC hasn’t independently verified it, Trump declared in late July that he had raised $25 million from cryptocurrency interests. Trump has been adopting more optimistic talking points about cryptocurrencies while running for office.
At Trump fundraisers in San Francisco and Nashville, executives in the cryptocurrency space showed up. The Republican candidate told the audience that if he were elected again, he would make sure the federal government never sold off its bitcoins.
The US will be the global leader in bitcoin and the crypto capital of the world, according to Trump’s plan, which he unveiled this afternoon. We’ll finish it, I promise. “.
