Author: YB

Compiled by: Shenchao TechFlow

Happy Election Day!

Don't worry, today's post won't delve into anything on the blockchain.

This is a special day that happens every four years, and we can confidently put down our work and enjoy all the excitement on social media.

On Sunday, a friend asked me how I view the impact of the election on cryptocurrencies and technology.

I could only respond, "Uh, I saw someone on Twitter saying the market might go up if Trump wins." But why? Is that true?

Actually, I’m not too clear either. To be honest, I don’t care much about it. Macroeconomic and political analysis are not my strengths.

I have been in this field for five years, and short-term price fluctuations do not affect me much.

However! I did take some time yesterday to learn about it. If you want to know what cryptocurrency-related matters to focus on on election day, I’m sharing some basic thoughts here.

Let's take a look.

Focus

Through my research, I found that this election's impact on cryptocurrencies is very different from before because cryptocurrencies have actually become an important topic of discussion for candidates.

Note: The candidates here also include seats in the House and Senate.

I think Coinbase may have somewhat exaggerated the importance of cryptocurrency in elections in its (cryptocurrency status) report. For example, while there are 52 million people holding digital assets, I do not believe that cryptocurrencies are a priority in most people's voting considerations.

However, as we saw in the 2020 elections, the race can be extremely tight! In states like Georgia and Pennsylvania, the election results could even be decided by the last 10,000 votes.

This is the key point I believe: even in swing states, only 20% of cryptocurrency holders care about their investments, suggesting that the influence of cryptocurrency policy may be greater than we imagined. This is due to the design of the electoral system.

Almost all politicians running for office have been asked about their views on digital assets, blockchain technology, and stablecoin regulation.

This has also forced the news media to mention the topic. Although it remains an unfamiliar area for them (see the CBS video below), they have almost had to discuss cryptocurrencies in some way.

Many presidential candidates have participated in tech podcasts like "Everyone On" during this cycle. Even Trump was interviewed by Fraokh.

Clearly, the candidates are trying to attract the attention of cryptocurrency voters. While these promises have limited meaning until they are actually implemented, cryptocurrency has become an important issue.

This makes me think, why has there been such a significant change over the past year?

Fairshake Super PAC

For friends outside the U.S., Political Action Committees (PACs) are organizations focused on specific issues that influence election outcomes by raising funds. These organizations either support candidates who align with their ideals or oppose candidates who stand against their position.

Over the past year, many may have seen industry leaders like Chris Dixon and Brian Armstrong announce funding for Fairshake PAC.

Since 2022, Fairshake has been funding candidates from both parties who support cryptocurrencies. Their mission statement on the website is:

Fairshake supports those committed to making America the home of the next generation of internet innovators.

To allow the open blockchain economy to thrive in the U.S., it is crucial to provide blockchain innovators the ability to develop networks under clearer regulatory and legal frameworks.

I had known about Fairshake for a long time but had not paid attention to their specific data. Yesterday, when I browsed the Open Secrets website, I was surprised to find the amount of funding Fairshake had raised.

They ranked sixth on the fundraising leaderboard, raising nearly $300 million.

It is worth mentioning that Fairshake (independent) has also collaborated with affiliates such as Defend American Jobs (conservative) and Protect Progress (liberal), so the funds raised are the sum of these organizations.

Here are the top 15 donors, all familiar names to us:

Fairshake Donors

Spending by organizations in the 2024 federal election cycle is as follows:

  • Fairshake: $40,698,591

  • Defend American Jobs: $57,883,662

  • Protect Progress: $34,633,121

Total: $133,162,374.

Through this data, I realized yesterday that most people only focus on the opposition between Trump and Kamala on cryptocurrency policy, but what’s more interesting is the efforts Fairshake has made in important campaigns in the Senate and House—they have supported candidates from both parties!

Promote candidates supporting cryptocurrencies

This Politico article details all the candidates supported by Fairshake funding. Below, I want to discuss a few prominent candidates.

Senate

Ohio: Republican Bernie Moreno received $40.1 million in support for his Senate campaign in Ohio to challenge Democrat Sherrod Brown.

Arizona: Democratic Congressman Ruben Gallego received $10 million in support in Arizona to challenge Republican Kari Lake.

Michigan: Democratic Congresswoman Elissa Slotkin received $10 million in support in Michigan to defeat Republican Mike Rogers.

House of Representatives

On the House side, Fairshake is focusing on about 50 important campaigns nationwide.

"We have noticed a broad bipartisan consensus on the importance of viewing crypto and blockchain as a key part of the future economy... We will continue to invest resources among the leaders of both houses to support those who are committed to taking real action and working with the industry to drive innovation, create jobs, and maintain America's global leadership through responsible regulation."

Fairshake announced it will spend $25 million on a TV advertising campaign supporting 18 House candidates from both parties.

Eleanor Terrett

Sometimes, people tend to simply think that "the victory of a certain party is more beneficial for cryptocurrencies." To some extent, this view makes sense because holding a majority in Congress is indeed very important.

However, it is worth noting that the recently passed key crypto policy FIT 21 (Financial Innovation for the 21st Century) received bipartisan support in the House, including votes from 71 Democratic lawmakers.

Every candidate supporting cryptocurrencies elected today can not only drive meaningful change over the next two years (until the midterms) but also set the tone for future candidates' positions on digital assets.

That’s it for today’s sharing, see you next time!