As the 2024 U.S. election approaches, the election campaigns of the major political parties have gradually entered a white-hot stage. The latest data shows that the encryption industry’s donations for this election have reached a record high of $94 million, a significant increase compared to the $83 million in the 2020 election cycle. These donations mainly came from political action committees (PACs), with Coinbase and Ripple Labs contributing particularly prominently, donating US$20.5 million and US$20 million respectively. Coinbase CEO Brian Armstrong also personally donated US$1 million.
Against this backdrop, the incumbent President Biden announced on July 22, 2024 that he would withdraw from the presidential race, which undoubtedly had a significant impact on the campaign situation. Biden plans to give a speech later this week to further explain this.
Next, we’ll dive into the details of the crypto industry’s donations in this election and the motivations behind them.
Donations from the Crypto industry account for a growing proportion of campaign contributions. Is this good for industry compliance?
In the 2024 US presidential election, the total donations from the crypto industry have reached a new high of $94 million, which not only reflects the growing influence of cryptocurrency on the political stage, but also reveals the industry's deep concern about the future policy direction. These donations mainly come from multiple political action committees (PACs), among which Coinbase and Ripple Labs' donations are particularly prominent. Coinbase donated $20.5 million, followed by Ripple Labs with $20 million. It is worth noting that Coinbase CEO Brian Armstrong also personally contributed $1 million.
Why did the crypto industry donate so generously in this election? The motivations behind this can be attributed to several aspects. First, the cryptocurrency industry is highly dependent on the policy environment. Whether it is the tightness of market regulation or the legality of cryptocurrency, the government's attitude will directly affect the development of the industry. Therefore, through political donations, crypto companies hope to influence policy making and strive for a more favorable development environment.
Secondly, there are obvious differences in the positions of the candidates for the 2024 election on cryptocurrency policy. Former President Donald Trump repeatedly expressed support for cryptocurrency during the campaign and was open to accepting cryptocurrency donations, which attracted a lot of support from the crypto industry. Many leaders and celebrities in the crypto industry, such as the Winklevoss brothers, Kraken co-founder Jesse Powell, and Sequoia Capital partner Douglas Leone, have donated to Trump to varying degrees. This shows their recognition and expectations of Trump's policies. On the other hand, the Biden administration has a tougher stance on cryptocurrency regulation, which worries the crypto industry. Therefore, given the different attitudes of the candidates from both parties towards cryptocurrency policy, the direction and intensity of industry donations are also particularly important.
In addition to policy influence, donations from the crypto industry also reflect its desire to demonstrate its power and influence by supporting specific candidates. As an emerging industry, the cryptocurrency industry needs to enhance its voice in mainstream society and the political arena through various channels. By donating, it can not only directly support candidates that are beneficial to its own development, but also demonstrate the economic strength and importance of the crypto industry to the society.
In short, the crypto industry's donations in the 2024 US election are not only unprecedented in scale, but also reflect the industry's deep concern for the future policy environment and its willingness to actively influence it. Next, we will continue to pay attention to the donation trends of major crypto companies and the policy changes that these donations may bring.
a16z bets on Trump. Will he give the green light to Crypto after winning the election?
In the field of cryptocurrency, a16z (Andreessen Horowitz) is undoubtedly a highly-regarded name. This well-known venture capital firm played an important role in the 2024 US election, reflecting its profound influence in politics and technology. Marc Andreessen and Ben Horowitz, co-founders of a16z, have actively invested in cryptocurrency and related technologies in recent years and have invested a lot of resources in this election.
Marc Andreessen and Ben Horowitz have long been staunch supporters of cryptocurrency and blockchain technology. Not only have they invested in a large number of crypto startups through a16z, they have also expressed their strong confidence in this emerging technology on multiple public occasions. Facing the 2024 election, they decided to turn this support into concrete political actions and influence the policy environment through donations to ensure that the cryptocurrency industry can get better development space in the future.
According to reports, a16z has donated millions of dollars to support cryptocurrency-friendly candidates. These donations are not only to fight for a favorable policy environment, but also to ensure that the cryptocurrency industry can continue to innovate and develop in the future. Among these donations, a16z pays special attention to candidates who are open-minded on technology policies, hoping that their election will promote more positive policy reforms.
In addition, a16z has actively participated in the activities of multiple political action committees (PACs) to further expand its influence through these organizations. For example, a16z donated to the conservative super political action committee (PAC) Sentinel Action Fund to support four Republican candidates. These candidates include Sam Brown in Nevada, David McCormick in Pennsylvania, Bernie Moreno in Ohio, and Tim Sheehy in Montana. They are all rated as "A" candidates by the cryptocurrency advocacy organization "Stand With Crypto" led by Coinbase, showing their friendly stance on cryptocurrency policy.
a16z's investment initiatives are not only financial support, but also a strategic layout. By supporting cryptocurrency-friendly candidates, a16z hopes to occupy a favorable position in future policy making and strive for more development opportunities for the cryptocurrency industry. These initiatives reflect a16z's long-term optimism and deep understanding of the cryptocurrency industry, and also demonstrate its dual influence in politics and technology.
Multicoin Capital actively expressed its support for Crypto-friendly Republicans, with a more prominent direction
In addition to a16z, Multicoin Capital is also one of the cryptocurrency investment companies that plays an important role in the 2024 US election. Multicoin Capital is committed to supporting candidates who are open-minded on cryptocurrency policies through its strategic donations to ensure that the cryptocurrency industry has a better policy environment in its future development.
On July 5, Multicoin Capital pledged to provide up to $1 million in funding to pro-cryptocurrency Senate candidates. The funding plan financially supports four Republican candidates, including Sam Brown in Nevada, David McCormick in Pennsylvania, Bernie Moreno in Ohio, and Tim Sheehy in Montana, by donating to the conservative super political action committee (PAC) Sentinel Action Fund. These candidates were rated as "A" candidates by the cryptocurrency advocacy organization "Stand With Crypto" led by Coinbase, showing their friendly stance on cryptocurrency policy.
Kyle Samani, co-founder of Multicoin Capital, said: "We do this because we recognize the importance of political engagement and must support candidates who believe that America needs to remain free to innovate." This statement highlights the strategic considerations behind Multicoin Capital's donation, which is to promote the healthy development of the cryptocurrency industry by supporting policy-friendly candidates.
Multicoin Capital has previously supported a number of cross-party cryptocurrency-friendly candidates, so this donation to the Sentinel Action Fund, while supporting conservatives, does not mean a shift in its support strategy. According to people familiar with the matter, Multicoin Capital chose the Sentinel Action Fund because the specific candidates it supports are in line with the company's cryptocurrency interests. These Republican candidates are supporters of cryptocurrency policies, and their election will help improve the regulatory environment for the cryptocurrency industry.
Multicoin Capital has also pledged to work with Gemini to match all cryptocurrency donations received by the Sentinel Operation Fund within a certain period of time. This move further demonstrates Multicoin Capital's firm support for the development of the cryptocurrency industry and its contribution to the industry's influence in the political field.
Through these strategic donations, Multicoin Capital hopes to exert greater influence in the policy-making process and strive for more development opportunities for the cryptocurrency industry. These donations are not only financial support, but also confidence and commitment to the future development of the cryptocurrency industry.
During the 2022 midterm elections, FTX founder Sam Bankman-Fried (SBF) became one of the core forces influencing the US political ecology with tens of millions of dollars in political donations. Although SBF was imprisoned for felony crimes, in the 2024 US presidential election, crypto companies such as Coinbase and Ripple and crypto-supporting venture capital institutions such as a16z took over his baton and used their "money power" to gain more voice for the crypto industry.
In the 2024 election, companies such as Ripple, a16z, and Coinbase continue to invest in crypto PAC Fairshake, making it an important political influence tool in the cryptocurrency industry. According to a report released by consumer rights organization Public Citizen on May 6, Fairshake and its two affiliated PACs (Defend American Jobs and Protect Progress) have raised more than $102 million for the 2024 election, making it the third largest organization among all PACs.
The 2024 election will be unique due to the deep involvement of Web3, and may open up a new campaign paradigm
In this election, cryptocurrency companies have demonstrated strong donation capabilities. Ripple contributed about $50 million, a16z announced a donation of $25 million to Fairshake, bringing its total donation to $47 million, and Coinbase donated $23.5 million. Other donors include Jump Crypto ($5 million), Circle, and Kraken ($1 million each). These donations not only demonstrate the strength of the crypto industry in political donations, but also reflect their urgent need to change the current regulatory environment.
In addition, well-known figures in the crypto industry also actively participated in the donation. Cameron and Tyler Winklevoss, twin billionaire executives of Winklevoss Capital Management, donated a total of $5 million. Phil Potter, an executive of Tether and Bitfinex, donated nearly $2 million, and Coinbase CEO Brian Armstrong personally donated $1 million. Electric Capital executive Avichal Garg, Tushar Jain and Kyle Samani of Multicoin Capital, and Matt Huang of Paradigm also donated funds ranging from hundreds of thousands of dollars.
In summary, cryptocurrency plays an unprecedented and important role in the 2024 US election. With the growth of crypto super PACs and crypto companies' efforts to change the unfavorable regulatory environment, it is expected that the influence of cryptocurrency on the US election will continue to expand. Through increasing political donations and increasingly extensive political participation, the crypto industry is gradually becoming an important force in the US political landscape.
