The 2024 US elections have changed the dynamics of the crypto industry bringing it to the forefront of the global financial industry. In a first-of-its-kind development, crypto donations in this presidential election have exceeded $238 million, outpacing traditional industries like oil and pharma. This is likely to make lawmakers at Washington more favorable toward the digital assets industry.
Crypto Donations Exceed $238 Million This US Election
As per the data from the Federal Election Commission filings, $238 million in crypto donations have gone in the form of individual donations and contributions to super PACs. This has exceeded the contributions from traditional industries like oil and pharma.
Some of the largest spenders from the crypto industry include crypto exchange Coinbase, blockchain payments firm Ripple, and venture capital giant Andreessen Horowitz. Together, these three alone donated upwards of $160 million to some pro-crypto super PACs that supported pro-crypto candidates like John Deaton in the Congressional race.
Analytics platform Breadcrumbs along with FOX Business conducted this survey regarding the overwhelming crypto donations. Speaking on the development, James Delmore, a research analyst at Breadcrumbs said:
“The crypto industry is sending a clear message to American politicians and elected officials with these donations: Current cryptocurrency regulations and policies are not working in the U.S.”
Of the total donation of $238 million, $181 million came from donations made to super PACs. However, the other $57 million came in the form of individual contributions from top industry players like Ripple co-founder Chris Larsen, Gemini crypto exchange founders Winklevoss twins, Andreesen Horowitz founding partners Marc Andreessen and Ben Horowitz.
The Growing Political Clout of Crypto
Both camps of Donald Trump and Kamala Harris have benefitted from crypto donations this US election, Trump alone has managed to garner more than 50% of total donations. As per the FEC data, Trump and Harris combined have racked up $34 million in total donations.
However, Donald Trump has seen more than $22 million in donations coming from 17 big donors. On the other hand, Kamala Harris racked up $12 million with 99% of it coming from just one player – Ripple co-founder Chirs Larsen.
Other pro-crypto candidates have also been giving a tough fight recently. The margin in the Ohio Senate seat is razor-thin. The incumbent Democratic senator Sherrod Brown leads GOP Bernie Moreno by just a margin of 1%. Throughout this election campaign, Moreno actively reached out to the crypto faithful, while receiving over $40 million from a pro-crypto super PAC. This begs the question of whether a crypto electorate could actually decide a win or loss.
Commenting on this, Coinbase Chief Legal Officer (CLO) Paul Grewal said that this scenario truly the strong emergence of crypto voters.
Opposition to Crypto’s Growing Clout
The substantial spending has also sparked strong criticism from observers who view these large contributions as an industry attempt to influence policy in its favor. Speaking to Fox Business, Rick Claypool, research director at consumer advocacy organization Public Citizen said:
“The millions crypto corporations and executives are spending is a brazen attempt by a relatively small sector to distort U.S. democracy to serve its profit-maximizing whims. By spending so much, the crypto sector has made its demands for light touch regulation and minimal enforcement impossible to ignore.”
Bhushan Akolkar
Bhushan is a FinTech enthusiast with a keen understanding of financial markets. His interest in economics and finance has led him to focus on emerging Blockchain technology and cryptocurrency markets. He is committed to continuous learning and stays motivated by sharing the knowledge he acquires. In his free time, Bhushan enjoys reading thriller fiction novels and occasionally explores his culinary skills.
Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
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