Crypto companies, notably Coinbase and Ripple, have infused over $119 million into the 2024 elections. Their goal is to support crypto-friendly candidates and shape clear regulations.
The bulk of these funds has been funneled into super political action committees (PACs), strategically supporting pro-crypto candidates and sideline skeptics.
Crypto Companies Make Aggressive Donations
The leading recipient of these corporate donations is Fairshake PAC, which now boasts $202.9 million in contributions. Remarkably, $107.9 million—53% of Fairshake’s funding—originates from crypto corporations, primarily Coinbase and Ripple.
| Crypto Sector Corporation | Total 2024 Contributions | Recipients | Amount |
|---|---|---|---|
| Coinbase | $50,499,995 | Fairshake PAC | $45,499,995 |
| Protect Progress (Fairshake affiliate) | $1,500,000 | ||
| Defend American Jobs (Fairshake affiliate) | $1,500,000 | ||
| Senate Leadership Fund (Republican PAC) | $500,000 | ||
| Senate Majority PAC (Democratic PAC) | $500,000 | ||
| Congressional Leadership Fund (Republican PAC) | $500,000 | ||
| House Majority PAC (Democratic PAC) | $500,000 | ||
| Ripple | $49,000,000 | Fairshake PAC | $45,000,000 |
| Protect Progress (Fairshake affiliate) | $1,500,000 | ||
| Defend American Jobs (Fairshake affiliate) | $1,500,000 | ||
| Commonwealth Unity Fund (John Deaton super PAC) | $1,000,000 |
Substantial donations from industry giants such as the Andreessen Horowitz founders, the Winklevoss twins, and Coinbase CEO Brian Armstrong further bolster this sum. However, this flood of corporate cash into politics has sparked controversy.
“Money moves the needle. For better or worse, that’s how our system works,” Brian Armstrong said.
Armstrong’s words highlight the aggressive push by these corporations to prioritize their financial interests. Consequently, Public Citizen believes that such actions may overshadow public welfare.
Read more: Top 12 Crypto Companies to Watch in 2024
Now, crypto corporations have become prominent political spenders. Since 2010, their contributions have reached $129 million, accounting for 15% of all known corporate political expenditures, totaling $884 million. Their financial clout is second to the fossil fuel industry’s election-related spending.
Impact of Political Funding: Threat to Democracy?
The impact of these contributions is evident. In 42 primary races influenced by crypto-backed super PACs, the industry’s favored candidates won 36 times. This success is also impacting politicians’ strategies.
For instance, Donald Trump, formerly a crypto skeptic, has rebranded himself as a pro-crypto presidential candidate. At the Bitcoin Conference in July, he vowed to make the US the “crypto capital of the planet” and even suggested the creation of a “strategic Bitcoin reserve.”
Meanwhile, the Democratic front appears receptive to a policy shift. Bloomberg reported that Kamala Harris’s advisers are signaling a more accommodating approach to crypto regulations, potentially easing the stringent measures seen under the current administration.
Read more: Crypto Regulation: What Are the Benefits and Drawbacks?
The strategic use of funds by the crypto sector indicates that companies are leveraging financial power for political influence. While this tactic is not new, the scale and focus of crypto industry spending are notable.
Candidates are clamoring to demonstrate their willingness to pander to crypto corporations, and sitting lawmakers are backing off tough policy stances. It is a clear indication that the Supreme Court’s 2010 ruling in Citizens United is a serious factor in the 2024 elections – and a threat to our democracy,” Public Citizen criticized crypto’s impact in the 2024 election.
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Source: https://beincrypto.com/ripple-coinbase-2024-election-crypto-donation/