Crypto Industry’s Election Spending Reaches Record $119M for 2024

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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August 22, 2024

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Crypto companies have invested a remarkable sum into the current federal election cycle, contributing to almost half of all direct corporate expenditures in these elections, a recent watchdog report shows.

According to Public Citizen, a consumer-rights advocacy group, the industry has contributed $119m out of the total $248m corporations spent directly in this election cycle so far.

The industry is increasingly looking to influence laws and regulations that favor its growth, by supporting candidates who are pro-crypto. The goal is to create rules that are either more lenient or provide clear guidelines, helping to reduce the current uncertainty in crypto regulation.

Crypto Giants Coinbase and Ripple Fuel Fairshake PAC with $107.9M in Donations

The majority of these funds have been directed to Fairshake PAC, a super PAC focused on supporting candidates who favor cryptocurrency interests. This year, Fairshake PAC has raised $202.9m. Over $107.9m came from major crypto companies such as Coinbase and Ripple.

Further, the remaining funds primarily originate from billionaire execs in the crypto space and venture capitalists. This included $44m from Andreessen Horowitz’s founders, $5m from the Winklevoss twins, and $1m from Coinbase CEO Brian Armstrong.

Corporations like Coinbase and Ripple provided more than half Fairshake’s financial support. This totaled $107.9m, making up 53%.

Public Citizen noted that corporate spending on elections of this magnitude has not been seen before.

Crypto Companies Trail Only Fossil Fuel Giants in Political Contributions

Further, the report shows that, over the past three election cycles, donations from cryptocurrency firms have accounted for 15% of all corporate contributions.

This percentage is from the total donations recorded since the 2010 Supreme Court decision that allowed unlimited contributions to super PACs. These entities are not supposed to coordinate directly with candidates’ campaigns.

In terms of election spending, crypto companies now rank just behind fossil fuel giants. Over the past 14 years, fossil fuel companies have invested $176m. Among these, Koch Industries is notable for contributing $73. A large portion supported Americans for Prosperity, an organization that heavily backed Tea Party Republicans during Obama’s presidency.

The study examines only the donations made by corporations to super PACs and hybrid PACs. These organizations are required to report their contributions to the Federal Election Commission.