Crypto Sector Boosts Political Spending in 2024
In the lead-up to the 2024 US federal elections, cryptocurrency firms have significantly boosted their political contributions, pouring over $119 million into campaigns so far.
This sum represents nearly half of the total corporate donations for the election cycle, which stand at $248 million.
A large portion of this spending has been funneled into Fairshake PAC, a super PAC that backs candidates who support crypto-friendly policies. Fairshake PAC has raised $202.9 million this year, with substantial contributions from major crypto players like Coinbase and Ripple.
This marks a dramatic shift in political contributions, as the crypto industry’s spending has outpaced traditional powerhouses such as Koch Industries, which contributed $25 million this cycle.
The surge in crypto donations follows the 2010 Supreme Court ruling in Citizens United v. FEC, which allowed unlimited corporate spending on elections. While corporate contributions have increased steadily since, the rapid rise in crypto-sector spending this year is particularly striking.
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Historically, corporate donations to super PACs totaled $313 million by 2020, with the crypto sector alone contributing $129 million in the past three election cycles—most of which came this year.
The effects of this influx are already apparent in various states. For example, in Montana, Senator Jon Tester has supported pro-crypto legislation after receiving backing from crypto-focused super PACs.
This trend has also seen these PACs involved in 46 primary races this year, with their chosen candidates winning 36 of those races. However, this surge has prompted scrutiny regarding the legality of such contributions, particularly from entities like Coinbase, which is a federal contractor.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
