The crypto industry has spent an “unprecedented” amount of money in 2024 in an attempt to influence US congressional elections, according to watchdog group Public Citizen.
Crypto companies, executives and investors are “by far the dominant political spenders” this year, having contributed $119 million this election cycle, according to the nonprofit’s analysis. They have spent $129 million over the past three election cycles.
According to Public Citizen, that puts crypto behind only the fossil fuel industry in terms of corporate spending since 2010, when the Supreme Court ruled that companies could spend an unlimited amount of money on elections so long as it went to independent groups supporting candidates or causes, rather than candidates themselves.
It’s the latest sign that crypto has become a force in the 2024 elections.
Republican presidential nominee Donald Trump made an appearance at a Bitcoin conference last month, where he told a cheering crowd “the rules will be written by people who love your industry, not hate your industry,” should he win in November.
Meanwhile, crypto proponents have kept a close eye on Democratic nominee Kamala Harris, looking for signs of a policy “reset” after chafing under aggressive regulators appointed by incumbent President Joe Biden.
The first signs of that reset came Wednesday, when Bloomberg reported that Harris adviser Brian Nelson — viewed with scepticism by some in the industry — said Harris would “support policies that ensure that emerging technologies and that sort of industry can continue to grow.”
Public Citizen, which is suing Coinbase and Fairshake for alleged violation of federal elections laws, assailed the crypto industry’s spending in its report.
“This tsunami of corporate crypto cash is a brazen and unprecedented attempt by for-profit businesses to force their private, pecuniary priorities ahead of the public interest,” it said.
Coinbase and Fairshake did not immediately respond to a request for comment.
‘Big Crypto’
Of the $248 million in “corporate money” spent on elections this year, almost half came from the crypto industry, according to Public Citizen.
Since the 2010 Supreme Court decision, also known as Citizens’ United, about 15% of all corporate contributions have come from crypto.
Most of that — about $114 million — has gone to super PAC Fairshake, per Public Citizen. And most of the money donated to Fairshake has come from two companies: Coinbase and Ripple.
“Big Crypto’s big spending strategy appears to be paying off,” Public Citizen said. Of 42 primary campaigns in which it donated, crypto-backed super PACs’ favoured candidates won 36 times.
It also attributed Trump’s courtship, Harris’ resent, and New York Senator Chuck Schumer’s recent appearance at a pro-crypto town hall to the industry’s deep pockets.
“To be fair, crypto did not invent the corporate political influence strategy of rewarding candidates who agree to do an industry’s bidding while threatening those who resist corporate power,” Public Citizen said.
“But no industry has ever before has so wholeheartedly embraced raising as much directly from corporations and openly using that political war chest as a looming threat (or reward) to discipline lawmakers toward adopting an industry’s preferred policies.”
The group’s analysis was limited to super PACs and hybrid PACs, which must disclose contributors to the Federal Elections Commission.
So-called dark money groups, which do not have to disclose their backers, have also been funding ads against crypto-sceptic Senators Elizabeth Warren and Sherrod Brown, Public Citizen noted.
Aleks Gilbert is DL News’ New York-based DeFi correspondent. You can contact him at aleks@dlnews.com.
