By Rachel Christian
Translation: Blockchain in Vernacular
According to a recent report from consumer advocacy group Public Citizen, almost half of all corporate funding for this year’s federal election campaigns — yes, almost half — came from cryptocurrency backers.
So what do these crypto proponents want? And where do presidential candidates Donald Trump and Kamala Harris stand on cryptocurrencies and their still-murky regulatory future?
In this article, we’ll dive into both candidates’ positions, while also taking a look at how much major cryptocurrency companies have invested in political donations this year — and what they hope to achieve with all that influence.
1. Cryptocurrency’s deep pockets in the 2024 election
Cryptocurrency, once considered a fad and the preferred payment method for secretive characters, is becoming increasingly mainstream, and its well-funded loyalists are spending big to gain influence in the 2024 elections.
Cryptocurrency companies and wealthy investors have directly invested more than $119 million to influence federal elections, according to a report from Public Citizen on August 21. The Washington, D.C.-based nonprofit progressive consumer advocacy organization said most of the money went to a nonpartisan super PAC called Fairshake, which has raised more than $202 million during the 2023-2024 election cycle with the goal of electing pro-crypto candidates and defeating crypto skeptics.
According to the report, major cryptocurrency companies — especially Coinbase and Ripple — are now the largest corporate political donors in 2024, accounting for almost 48% of all corporate donations during this year’s election. In fact, since 2010, cryptocurrency companies have become the second-largest industry in election-related spending, second only to fossil fuel companies.
Cryptocurrency executives and supporters argue that tens of millions of people care about digital currencies. However, a Federal Reserve survey showed that only about 7% of Americans held or used cryptocurrencies in 2023.
2. 2024 presidential candidates’ stance on cryptocurrencies
As the cryptocurrency lobby emerges as a significant force in the 2024 elections, both Trump and Harris are facing increasing pressure to clarify their positions on the issue.
1) Kamala Harris
Vice President Kamala Harris has yet to take a formal stance on cryptocurrencies during her brief campaign as the Democratic nominee, reflecting broader uncertainty about the issue within the party.
Democrats still have some catching up to do on cryptocurrencies, especially as the Biden administration has been viewed by crypto supporters as less than friendly to the industry.
The Securities and Exchange Commission’s (SEC) crackdown on the industry began about two years ago, following the collapse of FTX, the world’s third-largest cryptocurrency exchange. The SEC responded with a wave of lawsuits alleging that top cryptocurrency companies had circumvented basic investor protections. Two of the most high-profile cases targeted BN, the world’s largest cryptocurrency exchange, and Coinbase, the largest U.S. exchange.
The lawsuits follow the SEC’s previous failed efforts to curb wider adoption of cryptocurrencies, including blocking approval of a bitcoin ETF until a federal judge in 2023 overturned that decision, paving the way for the new fund to begin trading in January 2024.
But with plenty of money and attention from potential voters in swing states, Democratic leaders are working to improve relations with the cryptocurrency industry — even if their candidates haven’t formally said so.
According to Polit1C0, in July, 14 Democratic members of the House of Representatives sent a letter to the head of the Democratic National Committee, urging the party to adopt pro-cryptocurrency policies in its platform.
In mid-August, Democratic Party officials held a video call with the cryptocurrency industry in an effort to “reset” relations with the industry. According to Reuters, the group of cryptocurrency supporters, called Crypto4Harris, also plans to hold grassroots fundraising events across the country in September to drum up support for Harris.
2) Donald Trump
Former President Donald Trump, once skeptical of cryptocurrencies, has now changed his stance and become a presidential candidate who supports cryptocurrencies.
In the summer of 2019, Trump criticized cryptocurrency on social media, claiming it could be used to facilitate illegal activities, such as drug trafficking. During his presidency, regulatory actions taken by the Trump administration also include the SEC's controversial lawsuit against Ripple.
By 2024, however, Trump had changed his tune, trying to appeal to single-issue voters—and, more importantly, big donors in the cryptocurrency space.
In July, at a major cryptocurrency conference in Nashville, Tennessee, Trump declared that he wanted the United States to become the “cryptocurrency capital of the world” and the “world superpower” for Bitcoin.
Trump’s campaign now accepts Bitcoin donations and recently launched digital NFT trading cards that depict him in a superhero costume and dancing with Bitcoins, priced at $99 each and available on the Trump campaign website. His vice presidential running mate, Ohio Senator J.D. Vance, is also a long-time cryptocurrency supporter.
The Republican National Committee even mentioned cryptocurrencies in its official platform, stating that Trump would defend the right to mine Bitcoin and "ensure that every American has the right to custody their own digital assets and to trade them without government surveillance and control."
At the Bitcoin 2024 conference in Nashville, Trump detailed a series of pro-cryptocurrency policies and claimed that the price of Bitcoin would rise significantly under his administration.
Some of Trump’s cryptocurrency policy proposals include:
Building a Government Reserve of Bitcoin: During the meeting, Trump noted that his administration would "retain 100% of all Bitcoin currently held or acquired by the U.S. Government," adding that these digital currencies would form the "core of a strategic national Bitcoin reserve." As of October 2023, the U.S. government is estimated to hold over $5 billion worth of Bitcoin, primarily seized through criminal investigations. However, it remains unclear how these reserves will be used, whether they are realistic, or even whether they will be accepted by the broader cryptocurrency industry.
Create a cryptocurrency advisory board: In Nashville, Trump proposed the creation of a group called the "Presidential Advisory Board on Bitcoin and Cryptocurrency," and said the board's rules would be made by "people who love this industry, not people who hate it."
Preventing the Fed from creating its own digital currency: The central bank digital currency (CBDC) trend is growing in many countries around the world, but the idea has faced significant resistance in the U.S. cryptocurrency community. While the Fed has yet to decide whether to launch a digital version of the dollar, it released a long-awaited report in January 2022 detailing the potential costs and benefits. Trump has repeatedly spoken out against the idea in 2024, including at a January campaign rally in New Hampshire, where he called it a "dangerous threat to freedom." In May, the House of Representatives passed a bill prohibiting the Federal Reserve from creating a CBDC, but the bill still has a long way to go before becoming law.
3. Summary
With millions of dollars invested, cryptocurrencies have become a major factor in the 2024 election, influencing presidential candidates and down-ballot elections. While Trump has made generous promises to embrace cryptocurrency supporters, Harris and the Democratic Party are still playing catch-up. Crypto supporters are pouring money into campaigns to try to push regulatory changes in their favor.
As both parties take aim at this massive flow of money, the battle over cryptocurrency regulation intensifies, becoming a key issue to watch in the final weeks of the election.
