The cryptocurrency industry has emerged as a notable political force, with over $135 million spent in the 2024 election cycle to support more than 50 candidates across the political spectrum.
As of Friday morning, all 48 candidates backed by major crypto political action committees (PACs) have been declared winners, according to Bloomberg, marking a significant victory for the industry and a potential shift in the regulation of digital assets for years to come.
‘Anti-Crypto Is A Career Ender’
The crypto industry’s spending was not limited to partisan lines; candidates from both the Democratic and Republican parties received support.
The largest investment came from Ohio, where over $40 million was directed towards Republican Bernie Moreno in his campaign against Democratic Senator Sherrod Brown, a known critic of cryptocurrency.
Moreno’s success, winning 50.2% of the vote, exemplifies the impact of the crypto sector’s financial backing. Coinbase CEO Brian Armstrong celebrated the results, stating that “being anti-crypto is a good way to end your career.”
Fairshake has become the largest single-issue super PAC in US history, outpacing traditional corporate donors and now ranking second only to the fossil fuel industry in political spending since the Supreme Court’s 2010 ruling on corporate political contributions.
The Cedar Innovation Foundation, a crypto-backed lobbying group, has already proclaimed the formation of “the most pro-blockchain and pro-crypto Congress in history,” urging President-elect Trump to remove SEC Chair Gary Gensler, characterized over the past years for his critical stance toward the industry.
Political Tactics For Regulatory Goals
Companies like Coinbase and Ripple are also ramping up lobbying efforts, employing an unprecedented number of registered lobbyists in 2024. Andreessen Horowitz, a venture capital firm with significant crypto investments, is also expanding its presence in Washington, D.C., to further strengthen industry influence.
Political experts note that while financial contributions can facilitate meetings with lawmakers, sustained engagement is crucial for achieving policy goals.
Peter Loge, a media and public affairs professor, emphasized the importance of continued presence and involvement in the political process, stating, “You need to keep showing up.”
The election results have already prompted discussions among candidates about integrating cryptocurrency into their platforms. For example, Republican Sam Brown in the Nevada Senate race began highlighting blockchain innovation as a key campaign issue after significant ad spending by Fairshake.
As the cryptocurrency sector takes a victory lap, it faces the challenge of navigating the complex political landscape it has helped shape. According to Bloomberg, the industry plans to continue its push for favorable regulations, leveraging its recent electoral success to bolster its advocacy efforts.
However, critics warn that the tactics employed by the digital asset industry could set a precedent for other sectors, potentially leading to a “more entrenched” system of corporate influence in politics.
Rick Claypool, a research director at Public Citizen, described the digital asset sector’s approach as an “intimidation tool,” aiming to influence lawmakers without overtly declaring its interests.
Featured image from DALL-E, chart from TradingView.com