As a seasoned researcher with over two decades of experience in political and financial landscapes, I find myself both intrigued and slightly uneasy about the growing influence of the cryptocurrency industry in American politics. The $100 million spent on campaign contributions and media buys during the 2024 elections is an unprecedented move, one that sets a potentially dangerous precedent for future corporate involvement in electoral processes.
In many cases, the total amount spent by crypto-related interest groups and Political Action Committees (PACs) in U.S. elections, through both campaign donations and media buys, exceeded $100 million. Experts predict this trend is unlikely to diminish after 2024.
By the 7th of November, over 200 contenders vying for positions in the House of Representatives, Senate, and White House who had publicly endorsed digital assets and blockchain technology had successfully secured their victories in the 2024 elections. Among the notable wins that proponents of cryptocurrency considered favorable for the industry were Republican Donald Trump’s triumph for the U.S. Presidency and Bernie Moreno’s victory for one of Ohio’s Senate seats. As a researcher studying this space, these election results pique my interest regarding the potential impact on the digital asset and blockchain sector in the coming years.
Veronica McGregor, the legal head of Exodus, shared with CryptoMoon that the Ohio race had an extraordinarily significant impact, showcasing the immense influence the crypto lobby holds today.
“Hundreds of millions of dollars poured into these races with a pretty large amount of success […] This is a net win for the industry, for sure.”
Crypto companies already bracing for 2026 midterms
Prior to Election Day on November 5th, it appeared that industry figures were already considering methods to impact US lawmakers and candidates for future contests. Before their Oct. 30 earnings call, Coinbase CEO Brian Armstrong disclosed that the crypto exchange had donated an additional $25 million to the Fairshake PAC, one of the major contributors in the 2024 elections.
Coinbase and Ripple Labs collectively transferred over $90 million to Fairshake and its related groups Defend American Jobs and Protect Progress, primarily for the 2024 elections. This Political Action Committee (PAC) has stated it aims to assist candidates from both political parties advocating for pro-cryptocurrency legislation and policies. However, this approach cost Fairshake at least one significant Democratic contributor in August.
Lisa Gilbert, co-president of Public Citizen, a progressive advocacy group, stated that the money spent by the crypto industry during this cycle is unparalleled and serves as a chilling demonstration of power-brokering which should not be repeated. This massive expenditure, coupled with its success, provides a dangerous model for other corporate entities to learn from. It’s essential that we don’t stand still and allow other industries to adopt the same strategy to purchase future elections.
It’s evident that political movements backed by the industry, such as Stand With Crypto, which assert their objectives are solely to elect pro-crypto legislators without being partisan, have predominantly benefited the Republican party in the 2024 elections. This is because the Republicans secured two additional Senate seats to gain majority control, are poised to reinstate Donald Trump as US President, and may retain control of the House as well.
In a November 5th interview with Saxo, Anthony Scaramucci, who previously worked as Trump’s White House communications director, cautioned about the Democrats if Trump supports crypto. He indicated that there might be numerous Democrats opposed to it simply because Trump endorses it.
‘Regulation by enforcement’ changing under pro-crypto lawmakers?
Among the concerns expressed by many cryptocurrency users and industry influencers is the desire to replace Gary Gensler as head of the US Securities and Exchange Commission (SEC). They argue that his regulatory approach has been inconsistent and challenging to comply with, often leading to lawsuits against crypto companies such as Binance, Ripple, and Coinbase since he took office in 2021.
In simpler terms, Stuart Alderoty, Ripple’s top legal officer, stated to CryptoMoon that the crypto industry has faced unjust criticism and a biased negative portrayal. However, he believes that the industry had no other option but to respond strongly to these allegations in order to set things right. Fortunately, this approach was successful, and there’s no reason to believe it won’t continue to do so.
Alderoty added:
“Investing in the election process in 2024, the industry did so a big and notable way, and I think the return on that investment has proven worthwhile given the results of the election.”
The presidency of Donald Trump ends in the year 2029, but some members of the House of Representatives who take office in January, as well as certain Senators, will face re-election in the year 2026. It’s yet to be determined if crypto companies and executives might choose to donate money to candidates during that time.
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2024-11-08 00:57