TLDR:

• Crypto companies have spent $119 million to influence the 2024 US elections

• This is the most spent by any industry on the 2024 elections so far

• Coinbase and Ripple are the biggest spenders, donating mostly to a super PAC called Fairshake

• The crypto industry is now the second largest political spender since 2010, behind only fossil fuels

• Critics warn this spending could lead to weaker regulations that benefit crypto companies

Cryptocurrency companies are spending record amounts of money to influence the 2024 US elections, according to a new report. The watchdog group Public Citizen found that crypto firms have spent $119 million so far this election cycle, more than any other industry.

The biggest spenders are the crypto exchanges Coinbase and Ripple. Most of their donations have gone to a super PAC called Fairshake, which supports pro-crypto candidates. Fairshake has raised over $200 million in total, with more than half coming directly from crypto companies.

This level of political spending by crypto firms is new. The industry only started getting involved in elections in 2020. But in just a few years, crypto has become the second largest corporate political donor since 2010, behind only the fossil fuel industry.

Coinbase CEO Brian Armstrong said, “Money moves the needle. For better or worse, that’s how our system works.” The crypto industry’s strategy seems to be: support us, or we’ll spend money to defeat you.

So far, this approach appears to be working. Some examples:

• Donald Trump, who was skeptical of crypto before, now calls himself pro-crypto and wants to make the US the “crypto capital of the planet.”

• 71 Democrats in the House voted for a pro-crypto bill that the Biden administration opposed.

• Senate Majority Leader Chuck Schumer spoke at a pro-crypto event, saying “Crypto is here to stay no matter what.”

Critics warn this flood of money could lead to weaker regulations that benefit crypto companies but put consumers at risk. Rick Claypool of Public Citizen said crypto firms are “dumping about $99 million into buying influence over the 2024 elections.”

The crypto industry says it represents many voters who care about these issues. But a Federal Reserve survey found only about 7% of Americans used or held crypto in 2023.

Fairshake plans to spend big in key Senate races. It has pledged $12 million to defeat Ohio Senator Sherrod Brown, who has been critical of crypto. The group is also spending to support candidates in Arizona and Michigan.

This strategy of remaining nonpartisan and threatening to spend against any candidate who opposes them is unusual. Most corporate political donations go to partisan groups, usually supporting Republicans.

Since 2010, when the Supreme Court allowed unlimited corporate political spending, about 69% of corporate donations have gone to Republican-supporting groups. Only 16% went to Democrat-supporting groups.

The crypto industry’s big spending raises concerns about the influence of money in politics. Public Citizen warns it could lead to other industries following the same playbook. They argue this is another reason to overturn the Supreme Court’s Citizens United decision and limit corporate money in elections.

As the 2024 elections approach, the impact of the crypto industry’s massive campaign spending remains to be seen. But it’s clear that cryptocurrency is now a major player in US politics.

The post Crypto Industry Spends $119 Million on 2024 Election Influence appeared first on Blockonomi.