Public Citizen identifies significant investment from cryptocurrency enterprises in the upcoming 2024 election
A recent report by Public Citizen sheds light on the substantial financial involvement of cryptocurrency firms in the impending 2024 U.S. election. The analysis reveals that almost half of the total corporate contributions to the election originate from the crypto industry, amounting to around $119 million. Notably, major players like Coinbase and Ripple have accounted for over 80% of these donations.
Crypto companies are primarily directing their funds towards super PACs supporting candidates favorable to the industry who are contesting in various races across the country. With increased regulatory scrutiny under the Biden administration, prominent companies like Coinbase and Ripple have been embroiled in legal disputes with the Securities and Exchange Commission.
Former President Donald Trump, the GOP nominee, has taken advantage of the ongoing tensions between the crypto sector and the Democrats by positioning himself as a pro-crypto advocate. However, financial backing is flowing to candidates from both major parties as the elections for Congress and the presidency remain highly competitive.
Unlike traditional sectors like oil and banking, the cryptocurrency industry has outpaced them in terms of political expenditure during the election cycle. Since the Supreme Court’s landmark Citizens United ruling in 2010, crypto contributions have accounted for 15% of all disclosed corporate donations, with over 90% of the total coming in the current election period.
Public Citizen’s research director, Rick Claypool, emphasizes that crypto corporations rank second only to fossil fuel giants in their electoral spending since the Citizens United ruling. The emergence of Fairshake as a prominent bipartisan super PAC supported by leading industry players underscores the industry’s substantial financial influence.
With a significant portion of its funding originating directly from corporations, Fairshake has amassed around $169 million, with notable contributions from companies like Coinbase, Ripple, and venture capital firms. The super PAC has allocated substantial funds to support both Democratic and Republican candidates in key congressional and Senate races.
‘Striking Amounts’ of Funds
The concerted efforts of the cryptocurrency sector have yielded favorable outcomes during the primary elections. According to Public Citizen’s findings, crypto-backed super PACs saw success in 36 out of 42 primary races they supported. However, the industry’s influence is often subtle, with campaign ads influencing races without explicitly mentioning crypto issues.
The industry’s proactive stance has also led to engagements with Democratic leaders like Senate Majority Leader Chuck Schumer and Vice President Kamala Harris. Efforts to establish common ground and constructive dialogue between Democrats and crypto industry stakeholders are gaining traction.
On the other hand, former President Trump’s campaign has also attracted significant financial backing from digital asset executives, bolstering his image as a pro-crypto candidate. Trump’s increasingly positive rhetoric on cryptocurrencies and promises to support the industry have resonated with donors and supporters alike.
The ongoing financial influx into political campaigns from crypto entities underscores the sector’s growing influence and its efforts to shape policy outcomes in the upcoming election.
