In a major shift within the US political landscape, the cryptocurrency industry has outpaced traditional sectors in campaign spending during the 2024 election cycle, with the aim of positively influencing regulatory policies.
An analysis of Federal Election Commission (FEC) filings by blockchain analytics firm Breadcrumbs, in cooperation With FOX Business, he reveals that the digital asset sector has raised at least $238 million to date, surpassing contributions from the oil and gas, pharmaceutical industries and major Wall Street players like Citadel.
The contributions of cryptocurrencies indicate the urgent need for change
Significant financial support from the cryptocurrency industry includes corporate donations to major political action committees (PACs) and direct contributions to individual candidates from prominent industry figures.
The largest shareholders include well-known entities such as cryptocurrency exchange Coinbase and blockchain payment company Ripple Labsand venture capital firm A16z, which has collectively donated about $160 million to major pro-crypto political action committees that support candidates aligned with industry interests.
James Delmore, a research analyst at analytics firm Breadcrumbs, stressed the importance of these donations from major industry players, telling FOX:
The cryptocurrency industry is sending a clear message to US politicians and elected officials: current cryptocurrency regulations and policies are not working in the United States.
This comes as the same donors, Coinbase and Ripple Labs, have faced increased scrutiny from the US Securities and Exchange Commission (SEC) over the past years, with Lawsuits On the cryptographic operations of the exchange and payments company.
According to data compiled by Breadcrumbs, of the $238 million raised, nearly $181 million went to Super PACs. In comparison, $57 million was allocated to individual candidates and their supporting committees.
Notable contributors include Chris Larsen, co-founder of Ripple, who was interesting Supported Vice President Kamala Harris donated a whopping $11.7 million, most of it in Ripple’s native currency, XRP.
Meanwhile, Donald Trump has received more than $22 million from various cryptocurrency industry leaders, reflecting the industry’s preference for candidates who favor less stringent regulations.
Wins over anti-crypto candidates
Political contributions from the sector indicate a strategic effort to gain influence in Washington, especially in light of the Biden administration’s directions. Organizational approachwhich many in the industry consider overly restrictive.
Former President Donald Trump has publicly criticized the current regulatory framework a promise To fire SEC Chairman Gary Gensler on day one if he is elected to another term in the White House on Tuesday, increasing the appeal for investors.
The industry’s financial influence is largely channeled through major political action committees like Fairshake, which has raised $170 million and spent $135 million this presidential election cycle. These political action committees aim to support congressional candidates who favor digital initiatives.
Fairshake has already successfully campaigned against candidates seen as “anti-crypto,” such as California Rep. Katie Porter and New York Rep. Jamaal Bowman, who lost their primary races after facing heavy ad spending.
However, Rick Claypool, director of research at Public Citizen, criticized the extensive funding Contributions From the digital assets sector, suggesting that it represents an attempt to “influence” American democracy towards the interests of the industry, as he said:
The millions being spent by cryptocurrency companies and executives is a brazen attempt by a relatively small sector to distort American democracy to serve its whims of profit maximization. By spending so much, the cryptocurrency sector has made its demands for light regulation and minimal enforcement impossible to ignore.
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