Nearly half of 2024 corporate election spending comes from crypto firms

Updated 5:40 PM ET: Title changed and details added.

Crypto companies – primarily Coinbase (NASDAQ: COIN) and Ripple — have pumped more than $119 million into the 2024 U.S. election so far, according to a report from consumer advocacy group Public Citizen.

according to According to the report, crypto companies dominated political spending in 2024, accounting for 48% of the total money contributed by companies so far this year ($248 million so far).

“Money moves the needle,” said Coinbase (COIN) CEO Brian Armstrong. Axios Last year. “For better or worse, that’s how our system works.”

In June 2024, Ripple CEO Monica Long said, Reuters“I think as an industry, and especially for us U.S.-based companies, we are frustrated by how far behind the U.S. is in setting the rules.”

The cryptocurrency industry is expected to boom in 2024 after a series of high-profile bankruptcies in 2022 that led to increased regulatory scrutiny and crackdowns.

Bitcoin (BTC-USD) has jumped more than 45% so far this year, far outpacing the S&P 500’s gains of about 18%.

The U.S. Securities and Exchange Commission has filed lawsuits against several major cryptocurrency companies for alleged violations of securities law, including Coinbase (COIN) and Ripple.

The cryptocurrency industry has pushed for a bill that would limit the SEC’s oversight of the industry. It has also pushed for a bill that would create a comprehensive regulatory framework for its assets.

The majority of the donations went to the crypto-focused Fairshake PAC, a super PAC that has raised $202.9 million. More than half of Fairshake’s funding came from companies that stand to benefit from the PAC’s efforts. a report This was primarily indicated by Coinbase (COIN) and Ripple.

Fairshake describes its mission as supporting leaders “who champion the interests of progressive innovation, including blockchain technology and the crypto industry, through independent advertising efforts.”

The PAC’s backers include venture capital firm Andreessen Horowitz, Armstrong, Cameron Winklevoss, and Tyler Winklevoss.

47% of Fairshake’s funding came from crypto executives and venture capitalists, including $44 million from Andreessen Horowitz founders, $5 million from the Winklevoss twins, and $1 million from Armstrong.

Total spending by crypto companies in the past three election cycles has been $129 million, which is 15% of all known corporate contributions since the Supreme Court’s Citizens United ruling in 2010. 92% of corporate contributions to crypto have occurred in 2024.

The U.S. Supreme Court’s ruling in Citizens United v. Federal Election Commission invalidated some restrictions on campaign finance, allowing corporations and other outside groups to spend unlimited money on elections.

Public Citizen described the increase in crypto company contributions as “unprecedented,” adding that crypto spending is only behind the fossil fuel industry, which has spent $162 million over the past 14 years.