Highlights:
- Crypto donations in the 2024 election cycle have exceeded $238 million, surpassing traditional industries.
- Trump and Harris have received a combined $34 million in crypto donations for their campaigns.
- The crypto industry anticipates a regulatory shift that could foster innovation and growth.
The crypto industry has significantly increased its political funding in the 2024 presidential election cycle. According to Federal Election Commission filings, crypto donations in the current presidential election have surpassed $238 million. This includes individual donations from top industry leaders and super political action committees (PACs).
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This amount surpasses contributions from traditional industries such as oil and pharmaceuticals. This highlights the increasing influence of the digital asset sector in U.S. politics, as the crypto industry advocates for clearer regulations and a more supportive environment in Washington.
Most crypto donations come from individual contributions and super PACs, with major players like Coinbase, Ripple, and Andreessen Horowitz (a16z) significantly contributing. Together, they donated an impressive $160 million to support pro-crypto candidates like John Deaton. Analytics platform Breadcrumbs, in collaboration with FOX Business, surveyed the surge in crypto donations.
James Delmore, a research analyst at Breadcrumbs, noted:
“The crypto industry is sending a clear message to American politicians and elected officials with these donations: Current cryptocurrency regulations and policies are not working in the U.S.”
Crypto industry raised more $$$ for candidates this election cycle than *oil & gas* and *pharmaceutical* industries…
Think about that for a minute.
Crypto going mainstream.
via @EleanorTerrett pic.twitter.com/38b9V1gHno
— Nate Geraci (@NateGeraci) November 5, 2024
Breakdown of Crypto Donations in the 2024 Election
As per FOX Business report, about $181 million of the total funds raised comes from crypto firms contributing to super PACs. An extra $57 million was raised through individual donations from industry leaders like Andreessen Horowitz founders Marc Andreessen and Ben Horowitz, Ripple co-founder Chris Larsen, and Gemini founders Tyler and Cameron Winklevoss.
Many donations from industry leaders have supported pro-crypto congressional candidates. However, over 50% of the funds have gone to presidential candidates Donald Trump and Kamala Harris, who are using cryptocurrency as a campaign issue to attract more voters. FEC data shows Trump and Harris have received a total of $34 million from crypto industry leaders. Trump has over $22 million from 17 major donors, while Harris has $12 million, mostly from Chris Larsen, who donated $11.7 million in XRP.
Crypto Contributions Spark Controversy
The substantial spending has faced strong criticism. Observers believe these large contributions aim to influence policy. Rick Claypool, research director at Public Citizen, shared his concerns with Fox Business.
He stated:
“The millions crypto corporations and executives are spending is a brazen attempt by a relatively small sector to distort U.S. democracy to serve its profit-maximizing whims. By spending so much, the crypto sector has made its demands for light touch regulation and minimal enforcement impossible to ignore.”
Crypto Industry Awaits Regulatory Shift
The cryptocurrency industry anticipates a change in U.S. regulatory policy. Leaders expect a more favorable approach from Washington, regardless of the next administration. After years of tension under President Biden, optimism is growing. Companies like Bitwise and Canary Capital are developing new products.
Both Donald Trump and Kamala Harris are open to the digital asset industry. Trump aims to be a “crypto president.” Harris shows support for digital innovation and investor protection. Mark Cuban highlights her commitment to protecting crypto users.
The SEC, led by Gary Gensler, has taken a strict approach to crypto assets, citing risks like FTX’s collapse. Enforcement actions against major exchanges pose challenges for digital assets. However, crypto leaders hope a new administration might ease regulations.
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