"New money" surges: Crypto elites donate over $200 million to U.S. election
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"New money" surges: Crypto elites donate over $200 million to U.S. election
Crypto PAC's fundraising amount ranks third among all PACs involved in the 2024 election.
Navigating Web3 tides with focused insightsAuthor: flowie, ChainCatcher
Editor: Marco, ChainCatcher
Tech elites are expressing their interests by providing campaign funding to pro-crypto candidates, influencing U.S. politicians' attitudes toward digital assets.
Following a series of crypto-friendly moves from both Trump and Biden, another U.S. presidential candidate, Robert F. Kennedy Jr., has also voiced support for cryptocurrency technology, calling it "a symbol of freedom and transparency." During his campaign, he purchased 21 bitcoins to demonstrate backing for using cryptocurrency as a transactional currency.
Beyond the growing base of young crypto voters, the increasing influence of crypto in U.S. politics is driven by proactive financial power—the so-called "crypto cash advantage"—and an influential network of crypto advisors.
Last week, after Ripple announced a $25 million donation to the pro-crypto Super Political Action Committee (PAC) Fairshake, a16z followed with its own $25 million contribution.
Behind the U.S. Election: Record-Breaking Crypto Financial Power
During the 2022 midterm elections, Sam Bankman-Fried (SBF), then-founder of FTX—one of the largest U.S. crypto exchanges—became the most influential figure in crypto politics through tens of millions in political donations. (SBF has since been convicted of serious crimes.)
After SBF’s imprisonment, in the 2024 U.S. presidential election, crypto firms like Coinbase and Ripple, along with venture capital firms such as a16z that back the industry, have stepped up to fill the void left by FTX and SBF, seeking policy influence through financial contributions.
The pro-crypto PAC Fairshake, continuously funded by Ripple, a16z, Coinbase, and others, has become the primary political vehicle for the crypto industry in the 2024 election cycle.
Before Ripple and a16z jointly announced $50 million in funding for Fairshake, a May 6 report by consumer advocacy group Public Citizen revealed that Fairshake and its two affiliated PACs—Defend American Jobs and Protect Progress—had already raised over $102 million for the 2024 election, ranking third among all PACs at the time.
According to earlier Bloomberg reports, the crypto industry contributed just $83 million to the 2020 U.S. election. With several months still remaining before the 2024 presidential election, crypto-related political donations have already far surpassed the previous cycle.
Of the more than $100 million raised by Fairshake, Ripple contributed approximately $50 million.
With a16z announcing a $25 million donation to Fairshake, its total contributions are expected to reach $47 million, while Coinbase has donated $23.5 million. Additionally, Jump Crypto contributed $5 million, and Circle and Kraken each donated $1 million.
Several prominent figures in the crypto industry have also made personal donations.
Cameron and Tyler Winklevoss, billionaire executives behind Winklevoss Capital Management, together donated $5 million.
Phil Potter, executive at Tether and Bitfinex, donated nearly $2 million, while Coinbase CEO Brian Armstrong personally contributed $1 million.
Additionally, Avichal Garg of Electric Capital, Tushar Jain and Kyle Samani of Multicoin Capital, and Matt Huang of Paradigm each donated hundreds of thousands of dollars.
Behind these increasingly aggressive political donations lies a survival struggle for crypto companies facing ever-tightening regulations from U.S. authorities.
The main contributors to crypto donations in the 2024 U.S. election are also those institutions most affected by U.S. regulatory scrutiny—Ripple, Coinbase, Kraken—all of which have faced allegations of violating securities laws.
While Kraken chose to settle with a $30 million fine, Ripple and Coinbase remain locked in legal battles with U.S. regulators.
Recently, Ripple filed opposition to the SEC's motion seeking a $2 billion penalty, asking the court to impose no more than $10 million. Meanwhile, the SEC’s lawsuit against Coinbase alleging violations of securities laws remains ongoing.
In contrast to fundraising from wealthy crypto firms and investment institutions, Stand With Crypto—a lobbying group launched by Coinbase—is launching its own PAC for the U.S. election, aiming to raise funds from its 440,000 members to support pro-crypto candidates.
According to the Stand With Crypto website, nearly 900,000 crypto users have contributed over $87 million, with the largest single donation being $1 million from Moopay.
According to data from OpenSecrets, a nonprofit tracking U.S. political funding, several top political donors in the U.S. are strong supporters of the crypto industry.
The largest donor is Jeffrey Yass, billionaire co-founder of trading giant Susquehanna International Group (SIG), who has donated over $70 million between 2023 and 2024.
In early July 2022, Jeffrey Yass donated 100 bitcoins (BTC)—worth over $1.9 million at the time—to the crypto political organization Crypto Freedom PAC, marking the largest bitcoin-denominated political donation ever recorded by the Federal Election Commission. Joe Kildea, a representative of Crypto Freedom PAC, suggested Yass’s donation may have stemmed from the PAC’s support for candidates opposing the Biden administration’s crypto regulations.
Additionally, a16z co-founder Marc Andreessen has donated over $11 million to this year’s U.S. presidential election.
More crypto donations are expected. David Bailey, CEO of Bitcoin Magazine, recently announced his team aims to raise $100 million for a campaign to “ensure the next U.S. president supports Bitcoin.”
Over 80% Win Rate: The Early Impact of Crypto Financial Power
According to Public Citizen’s report, in six completed 2024 primary races where the wealthiest crypto PAC Fairshake and its affiliates intervened, only one pro-crypto candidate lost—giving them a win rate exceeding 80%.
For example, Fairshake spent $10 million on advertising opposing Katie Porter’s bid for California senator, ultimately leading to her defeat.
In the coming months, 11 additional candidates backed by Fairshake and its affiliated PACs will compete in party primaries, with some already receiving over $3 million in support.
Fairshake has also pledged funding for Senate races in battleground states like Ohio and Montana—seen as critical to securing a Senate majority.
Coinbase’s pro-crypto advocacy group Stand With Crypto has used part of its fundraising to host events engaging directly with 2024 U.S. presidential candidates, promoting favorable crypto policies.
In December 2023, Republicans Asa Hutchinson and Vivek Ramaswamy, along with Democrat Dean Phillips, participated in discussions about the crypto industry at a Stand With Crypto event, interacting with crypto media outlet CoinDesk.
The Stand With Crypto website previously listed planned invitees including Trump, independent candidate Robert F. Kennedy Jr., and Republicans Doug Burgum, Nikki Haley, Ron DeSantis, and Chris Christie.
The Unignorable Crypto Brain Trust
Beyond financial muscle, certain crypto organizations and individuals are serving as key advisors to major candidates, shaping election outcomes and future crypto policy.
Trump has recently shifted his stance on crypto, actively embracing it—promising to “ensure the future of crypto and Bitcoin happens in America,” accepting crypto donations, and even pledging to pardon Silk Road’s founder.
These pro-crypto moves have earned Trump significant support, thanks in large part to expert advice from David Bailey’s team at Bitcoin Magazine.
Bailey revealed that his team has been advising Trump’s campaign on developing a pro-Bitcoin and pro-crypto policy platform.
He also mentioned a proposed executive order to be signed on Trump’s first day back in office, focusing on crypto issues, though he did not disclose further details.
As Trump advances his crypto agenda, Biden’s campaign team is also actively seeking crypto advisors. According to The Block, Biden’s team has recently begun reaching out to crypto industry experts—including figures he previously rejected—in hopes of refining his crypto policy stance.
Conclusion
The SEC’s complete reversal on Ethereum ETFs, along with unprecedented pro-crypto stances from candidates like Trump and Biden, underscores how crypto has become a pivotal force in the U.S. election.
With the rise of powerful crypto super PACs, aggressive efforts by crypto firms to reshape hostile regulatory environments, and the integration of crypto experts into campaign teams, the influence of crypto on U.S. elections is poised to grow even further.
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