Political Donations Surge to Record $91M in Cryptocurrency Leading Up to 2024 Election
The cryptocurrency industry has set a new record by donating $91 million to political causes in an effort to promote favorable governance towards cryptocurrencies. This surpasses the $83 million donated during the previous 2020 election cycle, as reported by Bloomberg on May 17.
The majority of these donations come from political action committees (PACs), which collect contributions from members and allocate the funds to support or oppose candidates, ballot initiatives, or legislation. PACs strategically distribute funds during primary elections to influence the selection of candidates who align with their interests.
One prominent PAC, Fairshake, has raised an impressive $85 million to support political candidates who advocate for cryptocurrencies and blockchain technology in the upcoming election. Fairshake’s mission is to ensure that elected officials will prioritize the establishment and adoption of much-needed regulations for the cryptocurrency industry.
Fairshake’s efforts have attracted the attention of influential figures in the crypto space, including venture capitalists Marc Andreessen and Ben Horowitz, who each contributed $9 million to the PAC. Major crypto firms like Coinbase and Ripple Labs also made significant donations, with Coinbase donating $20.5 million and Ripple Labs contributing $20 million, according to the report.
Coinbase CEO Brian Armstrong, a vocal critic of anti-crypto regulations, personally donated $1 million to Fairshake. The largest contributor from the crypto industry is Jeffrey Yass, a major donor from Susquehanna International Group, who supports various networks from Bitcoin to ByteDance. Describing himself as a libertarian, Yass predominantly backs Republican candidates and has already donated $70 million to political causes.
The 2024 election holds significant importance for the future of cryptocurrency, particularly in the United States. As major jurisdictions become centers for cryptocurrency development, it is crucial to establish robust regulatory support for the technology. The contrasting views held by leading political candidates make this election particularly crucial.
The current Biden administration has taken a strict regulatory stance, which some interpret as being hostile towards cryptocurrencies. Conversely, the Trump administration aims to create a more supportive environment for crypto in the US. During a Q&A session, Trump expressed his desire to embrace cryptocurrencies and allow the industry to thrive.
However, some view Trump’s stance as opportunistic, especially considering his lower fundraising compared to the Biden administration, as reported by the Financial Times. Additionally, Trump’s ongoing legal expenses may have influenced his appeal to the crypto industry. He urged crypto supporters to vote for him, stating, “If you’re in favor of crypto, you better vote for Trump.”
A survey conducted by Greyscale in 2023 revealed that US voters prioritize presidential candidates who have an informed perspective on emerging technologies like cryptocurrencies. According to a report by Coinbase, approximately 20% of American adults claim to hold crypto, making a pro-crypto stance a valuable asset in the upcoming 2024 election.