Donations from the U.S. crypto industry have reached record levels, surpassing $190 million as the election cycle approaches its final stretch, reported CNBC on October 20.
This increase is significant compared to previous election cycles, with nearly a thirteenfold jump from the $15 million spent in 2020.
Impact on Key Congressional and Senate Races
The crypto industry has started to heavily invest in key congressional and senate races with the goal of shaping future U.S. regulatory policy. Data from the Federal Election Commission (FEC) shows that crypto companies have contributed nearly half of all corporate donations, with more than $130 million directed toward congressional races, including primaries. This highlights the industry's effort to strengthen pro-crypto representation.
Influence on Both Political Parties
The super political action committee (PAC) Fairshake, known for its support of cryptocurrency and blockchain policy, is among the leading spenders. In September, it distributed nearly $29 million, with $20 million of that going to two affiliated PACs: $15 million to PAC Defend American Jobs, supporting Republicans, and $5 million to Protect Progress, which favors Democrats.
Fairshake also directed $8.8 million to competitive races in New York, Nevada, and California. Republican candidates David G. Valadao and Michael Garcia from Southern California received $1.3 million and $1 million, respectively, for their tight races.
While more funds have been directed to Democrats in recent months, donations remain fairly balanced between both parties. In September, Democrats received $6.2 million, while Republicans received $2.3 million.
California as a Key State
California is a critical state for the crypto industry due to its high concentration of blockchain companies. The political landscape of this state will be key for future regulatory developments, and the industry's donations reflect this. Analyst James Delmore told CNBC that supporting candidates in Californiaâs districts is crucial, not only to ensure pro-crypto policymakers but also to maintain Californiaâs position as a hub for the crypto industry.
In addition to California, donations have been directed to key states like New York, Nevada, and Illinois. Protect Progress has also invested over $10 million in supporting Democratic Senate candidates in Arizona and Michigan.
Long-term Strategy of the Crypto Industry
As the crypto industry continues to grow in political influence, the large donations flowing into key races underscore its long-term strategy to shape the future regulatory environment in the U.S.
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