Since 2023, the cryptocurrency industry has broken records by donating a staggering $94 million to political causes in a bid to support governance favorable to crypto.
A report dated May 17 reveals that this figure surpasses the $83 million contributed during the previous 2020 election cycle.
The majority of these donations stem from political action committees (PACs), which collect contributions from members and then distribute the funds to various campaigns, either in support or opposition of candidates, ballot measures, or legislative initiatives.
PACs strategically direct their funds during primary elections to sway the selection of candidates who align with their interests.
Who is Donating Cryptocurrency to Politics?
In order to help political candidates who embrace cryptocurrency and blockchain technology in the forthcoming election, the Super PAC Fairshake has raised over $85 million.
Fairshake aims to guarantee that political contenders will support the creation and enactment of crucial rules for the cryptocurrency sector.
Most recently, Fairshake effectively opposed a Democratic candidate for U.S. Senate in California by spending over $10 million on a series of derogatory advertisements that helped keep her off the ballot.
Major players in the cryptocurrency industry have taken notice of Fairsake's purpose, including venture investors Marc Andreessen and Ben Horowitz, who each contributed $9 million to Fairshake.
Additionally, large crypto companies such as Coinbase and Ripple Labs have joined the fray, with Coinbase donating $20.5 million and Ripple Labs contributing $20 million, as outlined in the report.
Coinbase CEO Brian Armstrong has been outspoken in his opposition to anti-crypto governance and personally contributed $1 million towards the cause.
One of the most prominent contributors from the crypto industry is Jeffrey Yass, a major donor associated with Susquehanna International Group. Yass supports various networks ranging from Bitcoin to ByteDance.
Identifying himself as a libertarian, Yass primarily backs Republican candidates and has already donated a substantial $70 million towards political causes.
Cryptocurrency in the Election of 2024
Today, elections will determine the direction of cryptocurrencies. It is imperative to have robust regulatory backing for cryptocurrencies as major jurisdictions gradually transform into centers for its development.
The US is among the most powerful. The outcome of the 2024 election appears to have a significant impact on the nation's cryptocurrency landscape.
This has emerged as a significant concern for voters in the US elections of 2024, per a survey conducted by the Digital Currency Group.
This is mostly driven by the divergent ideologies of prominent political contenders. There are others who view the current Biden administration's strict regulatory stance as animosity.
This initiative has faced scrutiny, with some labeling it as opportunistic. Comparatively, it has raised considerably less than its primary competitor, the Biden administration, as reported by the Financial Times.
Moreover, ongoing legal expenses for Trump might have prompted a personal appeal to the crypto industry.
During a Q&A session, Trump stated, "If you're in favor of crypto, you better vote for Trump."
A 2023 Greyscale survey indicates that US voters prioritize presidential candidates who possess an informed perspective on emerging technologies such as cryptocurrency.
Coinbase's report reveals that approximately 20% of American adults claim to hold cryptocurrency. Therefore, taking a pro-crypto stance could serve as a valuable asset in the upcoming 2024 election.
May 2024, Cryptoniteuae