Crypto companies have become the dominant force in federal election spending, spending more than $119 million to influence the outcome of the U.S. election.
According to a report by According to the nonprofit Public Citizen, nearly half of all corporate money contributed to the US election this year came from cryptocurrency backers, totaling $248 million.
That makes the crypto industry the largest institutional political spender in 2024, with Koch Industries, primarily known for its oil and gas, in second place, contributing $28.25 million to support Republican candidates and causes.
According to the report, the massive investment was primarily directed to noFairshake is an independent, non-partisan political action committee dedicated to electing pro-crypto candidates and defeating skeptics in the sector.
One of the general concerns in the report about spending was that crypto-influenced lawmakers were undermining consumer protections and financial system safeguards.
“Crypto-influenced lawmakers who do their best to profit from major cryptocurrencies mean weaker protections that prevent individual consumers from being defrauded by reckless crypto scams — and looser regulations that protect our financial system from disruptive innovations that exploit consumers while enriching insiders.”
Citizen’s Report
Unprecedented spending
Over the past three election cycles, crypto companies have spent $129 million, accounting for 15% of all known institutional contributions since the Supreme Court’s 2010 Citizens United ruling, which allowed unlimited institutional contributions to political action committees.
During the cycles, 92% of this spending occurred in 2024 alone.
Chart: General Citizen
Political spending of cryptocurrencies
The report highlights how spending appears to be beneficial in the US political landscape.
According to the report, crypto companies have pledged support for the Montana Senate race without identifying a candidate. Meanwhile, Senator Jon Tester has voted in favor of pro-crypto legislation. Despite previous doubts.
Seventy-one House Democrats have approved a House Republican bill, known as the 21st Century Financial Innovation and Technology Act, in defiance of the Biden administration. The legislation is expected to legalize the cryptocurrency industry if passed.
Additionally, politicians like Donald Trump, J.D. Vance, and members of Kamala Harris’s team have made pro-crypto gestures, indicating the growing influence of the crypto sector on political positions and decision-making.
Versic
Fairshake PAC, a primary beneficiary of this influx of cryptocurrencies, has raised $202.9 million so far, with more than half of its funding — $107.9 million — coming directly from companies like Coinbase and Ripple (XRP).
The rest of Fairshake’s money came from top crypto executives and venture capitalists, including the founders of Andreessen Horowitz and the Winklevoss twins.
Warnings about the impact of cryptocurrencies on elections
The increase in institutional spending is seen as an aggressive move by the crypto industry to push its regulatory agenda to the forefront of the 2024 elections. However, the strategy is not without controversy.
According to the report, critics claim that the overwhelming influence of cryptocurrencies in politics could undermine the public interest in favor of private, profit-driven goals.
“We are already tired of having elected officials ignored because influential billionaires and large corporations tell them to,” the report said. “Regulators and lawmakers should be free to carry out their public interest duties without fear of political attacks from business interests.”
The report warned that this trend could lead to increased corporate influence and weaken established electoral norms, strengthening the power of wealthy interests in the political process.
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