Who are the cryptocurrency groups that invested real money during the election?
Written by: Mensh, ChainCatcher
Edited by: Nianqing, ChainCatcher
On November 6, 2024, the most dramatic U.S. election in history came to a close. Donald Trump, known as the "crypto president," was successfully elected, which may signify the official entry of crypto into the White House. Meanwhile, Bitcoin broke the $75,000 mark, setting a new historical high. The interest groups and beneficiaries hidden behind this will gradually come to light.
Cryptocurrency Lobbying: Real Money from Congress to the Presidency
On May 22, the U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT21) with a vote of 279 to 136. This bill, primarily driven by Republicans, aims to amend existing securities and commodities regulations to establish a regulatory framework for digital assets, promoting the development of the cryptocurrency industry.
The passage of FIT21 was made possible by the substantial campaign spending from cryptocurrency groups directed at lawmakers.
Additionally, political action committees influence the elections of lawmakers, thereby affecting the introduction and passage of bills. According to political fundraising data tracking platform OpenSecret, political action committees (PACs) supporting cryptocurrency have invested over $133 million in elections. They intervened in 51 campaigns, mainly to assist candidates who promised not to impose strict regulations on cryptocurrencies. The three main PACs are Fairshake, Protect Progress, and Defend American Jobs.
The rise of super PACs is attributed to the 2010 Supreme Court ruling in Citizens United v. FEC, which allowed corporations and unions to make unlimited expenditures in political activities. The subsequent Speechnow v. FEC case further established the legality of "super PACs," which can accept and spend unlimited donations as long as they do not coordinate directly with candidates or parties. This is also why the cryptocurrency industry was able to invest as much as $133 million in this election.
For example, Fairshake spent over $10 million to help California Congresswoman Katie Porter (Democrat - California) in her unsuccessful Senate campaign and over $2 million to assist New York's 16th District Congressman Jamaal Bowman (Democrat - New York) in his re-election bid. Both of Fairshake's target candidates lost in their respective primaries. However, this super PAC has redirected its efforts and funds to support bipartisan candidates, including California Congresswoman Michelle Steel and North Carolina Congressman Don Davis, who were elected in 2023.
In Ohio's most expensive election ever, Defend American Jobs spent over $40 million supporting Republican candidate Bernie Moreno in his Senate campaign against long-serving Democratic Senator Sherrod Brown. Brown's defeat could tilt the Senate toward the Republicans.
Moreno's spokesperson Reagan McCarthy told The Washington Post: "Bernie is not like Sherrod Brown; he knows the difference between blockchain and chainsaw, and Bernie has a deep understanding of this technology, knowing how to ensure its development in the U.S. and will work to ensure that America leads the world."
Protect Progress has spent over $10 million supporting Congresswoman Elissa Slotkin (Democrat - Michigan) in her campaign. Slotkin voted in favor of the Financial Innovation and Technology for the 21st Century Act, which aims to establish a regulatory framework for digital assets. This super PAC also spent $10 million on Congressman Ruben Gallego (Democrat - Arizona), who believes that "cryptocurrency is very important for driving technological innovation, economic growth, and job creation," and that a "comprehensible regulatory framework is needed to provide clarity and promote responsible innovation."
Brian Armstrong of Coinbase recently stated in an interview with CNBC: "No matter what happens in this election, this will be the most pro-cryptocurrency Congress we have ever had."
Which Cryptocurrency Institutions Participated in Political Donations?
Political donation data provides a glimpse into the financial backers behind the political stage. From the funding sources of Trump's political action committee Trump 47, the committee raised a total of $327.47 million in 2024. Among the donors contributing $1 million, Winklevoss Capital Management donated approximately $2.366 million, making it the second-largest donor, and the company's founder is Tyler Winklevoss, the founder of the cryptocurrency exchange Gemini.
Another action committee, Right For America, raised a total of $68.46 million this year, with A16Z founders Marc Andreessen and Ben Horowitz donating $5 million. Of course, the cryptocurrency industry does not only benefit Republicans; most of the contributors to the three cryptocurrency-supported super PACs do not have a clear party affiliation. They simply want to elect politicians who are friendly to cryptocurrencies.
Institutionally, most donations came from the three cryptocurrency exchanges Coinbase, Ripple, and Jump Crypto, which contributed $46.5 million, $46.5 million, and $15 million, respectively, totaling approximately $108 million. A16Z also contributed $45.2 million.
Source: https://www.opensecrets.org/news/2024/11/the-crypto-trio-how-the-cryptocurrency-industry-has-made-its-mark-on-2024-elections/
A recent report from the nonprofit watchdog Public Citizen revealed that nearly half of the corporate funds flowing into the election came from the cryptocurrency industry.
Top Ten Recipients of Ripple Funds in 2024
Top Ten Recipients of Coinbase Funds in 2024
Top Ten Recipients of Jump Trading (Parent Company of Jump Crypto) Funds in 2024
Recipients of Winklevoss Capital Management Funds
Future Benefits: Who Has Already Made Moves?
The regulatory framework for cryptocurrencies in the U.S. is bound to gradually improve, and the volume of voices in politicians' ears will inevitably be transmitted through layers of lobbying groups. Major exchanges, VCs, and foundations have already made their moves. The following summarizes the donor lists of the three super PACs for investors to pay attention to.
Fairshake PAC Donor List
Defend American Jobs PAC Donor List
Protect Progress PAC Donor List
In addition to A16Z, Coinbase, and Ripple, Multicoin appears on the donor lists of each PAC with a contribution of only $25,000, which is also worth pondering. With a dream of decentralization, the tug-of-war between cryptocurrency and regulation remains a long and challenging road.
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