During the 2024 election cycle, the U.S. cryptocurrency industry spent more than $238 million on political donations, an amount that even exceeded traditional industry giants such as oil, pharmaceuticals, and Wall Street.
This also reflects the active role of the cryptocurrency industry in shaping the future regulatory environment and legislative process, as well as its potential power in promoting relevant policy changes.
Cryptocurrency Donations Overview
According to statistics from blockchain platform Breadcrumbs compiled by FOX Business, total donations from the U.S. cryptocurrency industry in the 2024 election cycle exceeded $238 million, of which $181 million went to super PACs supporting cryptocurrency and another $57 million was donated to individual candidates and their committees.
Among them, industry giants such as Coinbase, Ripple and Andreessen Horowitz jointly donated $160 million to the political action committee (PAC) of candidates who support digital asset policies.
Trump and Harris have been the main beneficiaries of cryptocurrency donations in the presidential race, with Trump’s campaign raising more than $22 million in cryptocurrency donations, including more than $8 million worth of digital currencies such as BTC, ETH, and XRP.
In addition, Howard Lutnick, a well-known Bitcoin investor and co-chairman of Trump's transition team and CEO of Cantor Fitzgerald, has personally donated at least $6 million to Trump.
At the same time, Trump has publicly stated that if elected, he will replace SEC Chairman Gary Gensler, who has a strict regulatory stance on digital assets. The latter's enforcement measures in digital asset regulation have been widely criticized.
More details on election donations
Current Vice President Harris has also received about $12 million in donations from the cryptocurrency space, most of which came from Ripple co-founder Chris Larsen, mainly in the form of XRP. Silicon Valley heavyweights such as LinkedIn's Reid Hoffman and tech investor Ron Conway have also donated to political action committees supporting Harris.
Cryptocurrency organizations have also invested heavily at the congressional level. Organizations such as Fairshake, Defend American Jobs, and Protect Progress have raised $170 million and spent about $135 million on campaign ads aimed at increasing the number of pro-crypto members in Congress.
Among them, Fairshake's branch Defend American Jobs invested $40 million to support Ohio Senate candidate Bernie Moreno, who is also an active supporter of cryptocurrency. Previously, Fairshake spent $13 million on advertising in the Democratic primary campaign, which led to the defeat of several anti-cryptocurrency Democratic congressmen.
However, public interest groups have criticized the cryptocurrency industry’s political involvement, arguing that its heavy spending has an undue influence in policy decisions. Rick Claypool of Citizens for Public Interest Research described the donations as a “blatant attempt” to align American democracy with the interests of a particular industry.
Conclusion:
In the 2024 election cycle, the U.S. cryptocurrency industry's political donations hit a new high, surpassing traditional industries, showing its growing influence in U.S. politics. This trend not only highlights the industry's active participation in policy and legislation, but also highlights its key role in promoting policy and regulatory reforms that are beneficial to the development of the industry.
However, the sharp rise in political donations from the cryptocurrency industry in the United States has also raised concerns about political influence and democratic balance. It may not only undermine the fairness and transparency of policy making, but also arouse public doubts about the political inclinations of special interest groups. This requires policymakers, regulators and the public to discuss the opinions of all parties in depth to ensure that the integrity and fairness of democratic mechanisms are guaranteed.
💬Finally, do you think that political donations from the cryptocurrency industry will have a big impact on the country's future policy making? Is the impact of cryptocurrency on American democracy positive or worthy of caution?
