Emily Walker
The cryptocurrency sector has solidified itself as an influential player in politics, contributing over $135 million during the 2024 election cycle to support more than 50 candidates from various political affiliations.
Recent updates confirm that all 48 candidates endorsed by prominent crypto political action committees (PACs) emerged victorious, as reported by Bloomberg. This marks a notable win for the crypto sector, potentially influencing regulations surrounding digital assets in the coming years.
‘Anti-Crypto Is Career Suicide’
The financial support from the crypto sector crossed party lines, with candidates from both the Democratic and Republican parties receiving aid. The most significant funding was allocated in Ohio, where over $40 million supported Republican Bernie Moreno in a campaign against Senator Sherrod Brown, a vocal critic of cryptocurrencies.
Moreno’s victory, with 50.2% of the votes, underscores the power of financial backing from the crypto industry. Coinbase CEO Brian Armstrong remarked that opposing cryptocurrency could be detrimental to a political career.
Fairshake has emerged as the largest super PAC focused on a single issue in U.S. history, surpassing traditional corporate sponsors and now sits just behind the fossil fuel sector in political expenditures since the 2010 Supreme Court decision on corporate political contributions.
The Cedar Innovation Foundation, a crypto-supported lobbying entity, has boldly declared the establishment of “the most pro-blockchain and pro-crypto Congress ever,” calling on President-elect Trump to dismiss SEC Chair Gary Gensler, who has been critical of the industry.
Strategic Approaches for Regulatory Influence
Companies such as Coinbase and Ripple are significantly increasing their lobbying activities by employing a record number of registered lobbyists in 2024. Additionally, Andreessen Horowitz, a venture capital firm invested heavily in crypto, is fortifying its influence in Washington, D.C.
Experts indicate that while financial investments can open doors for discussions with lawmakers, ongoing engagement is essential for achieving regulatory objectives.
Peter Loge, a professor specializing in media and public relations, stressed that consistent involvement is key to making an impact, noting, “You need to keep showing up.”
The election outcomes have already inspired discussions among candidates about incorporating cryptocurrency into their platforms. For instance, Republican Sam Brown in the Nevada Senate race started emphasizing blockchain innovation as a critical campaign theme, fueled by substantial advertising from Fairshake.
As the cryptocurrency sector celebrates its electoral wins, it must navigate the intricate political landscape it has influenced. According to Bloomberg, the industry is intent on persisting in its pursuit of favorable regulations, using its recent achievements to enhance its advocacy initiatives.
Nonetheless, critics caution that the strategies utilized by the digital asset sector might establish a framework for other industries, potentially fostering a deeper entrenchment of corporate power in politics.
Rick Claypool, a research director at Public Citizen, depicted the sector’s approach as an “intimidation tactic,” aimed at swaying lawmakers without explicitly stating its objectives.
Image credited to DALL-E, chart data sourced from TradingView.com