As the US midterm elections are around the corner, crypto giants of the space have come up investing massively in electoral campaigns to immensely influence the Republican and Democratic parties.
A wide range of US politicians are finding a way out whether digital assets are capable of fetching more votes and leaving a footprint in the elections.
According to the WSJ report, multiple crypto industries are now seeking to massively donate for the midterm elections to gain the government’s favourability in avoiding legal scrutiny of their business module.
Crypto Wants Friendlier Congress!
The frauds and scams in the crypto industry have caught the attention of regulators to conduct legal scrutiny of the space. However, multiple crypto firms find this awful, as it can severely harm their further expansion and put a stop to their expected annual revenue.
A legal step from a regulator on a crypto firm reduces the reputation of the company, which motivates investors and users to move away from the platform.
According to research by a political donation tracker, OpenSecrets, crypto firms and employees have flown a massive donation of $73 million for the US elections, nearly $13 million up from 2020’s contribution.
This push came up after regulators intensified their scrutiny and joined forces to investigate money laundering-related frauds in the crypto industry.
Recently, crypto exchange firm Coinbase Global went under the radar of the Security and Exchanges Commission (SEC) for executing an unregistered securities exchange. Moreover, Ripple Labs has also been accused by the SEC of unauthorizedly distributing its native token, XRP.
The SEC has also deployed a team focused on investigating crypto-related crimes and conducted over 100 enforcement actions against crypto firms.
Regarding this, SEC Chairman Gary Gensler said, “We’re going to…continue to be a cop on the beat. The law is pretty clear.”
Crypto Industry Finds A Solution
It has come to the attention that FTX Founder Sam Bankman-Fried is one of those whale donors who is willing to donate a whopping amount of $1 billion for the presidential election in 2024.
The crypto sphere is looking forward to the new government working in favour of the industry as both parties have proposed a law for exemption in securities and tax of cryptocurrencies and transparency of investigating crypto firms.
Hermine Wong, a policy director at Coinbase, commented, “These midterms are the most important elections for this crypto community. We believe that the legislators who will be coming in this cycle will be able to finally draft legislation to govern this space.”
The donations from the crypto firms would be used to buy gadgets like television, radio, and digital ads, mail pamphlets to enhance the winning chance further and provide yard signs, polling services, and text messages to voters.
Crypto trading platform FTX is the third largest whale donor for the US election after mega-donor George Soros and cardboard-box manufacturer Uline.
Senate leader Chuck Schumer and several lawmakers in Washington received over $100K from giants like Coinbase and Ripple and $20K from the employees of Ripple and FTX.
With the hope of favours and insights from the winning party, a crypto firm Paradigm has donated $20K to several executives, including Sen. Tim Scott, who would direct the Senate Banking Committee if the Republicans win the election.
Top executives of Coinbase, Ripple, Bitwise, and Blockchain Capital have donated $50K to Rep. Patrick McHenry, who would occupy the House Committee on Financial Services if the Republicans win.
Verdict
A boom in crypto donations for the election will attract enough lawmakers and government authorities to consider the space, as it will bring excellent legalisation for the industry.
Moreover, it will be easier for crypto giants to expand their sectors seamlessly around the world without any hurdles from regulators by marking an influence in Washington.
Was this writing helpful?
Source: https://coinpedia.org/regulations/crypto-giants-get-hugely-involved-in-the-us-election-campaign-donations-to-bypass-legal-scrutiny/