By Ariel Solomon
- Crypto backers have contributed to 44% or $119M of corporate contributions in the 2024 election campaigns
- The Cryptocurrency market is projected to generate $56.7B this year, with the largest share coming from the U.S. at $9.788M
The cryptocurrency sector is leading the pack on corporate spending during this 2024 election cycle. With over $119 million dollars spent to influence federal elections, primarily by Coinbase and Ripple, crypto backers are putting their money where their mouth is and our presidential candidates are taking notice. Donald Trump, who was previously skeptical of cryptocurrencies, has spoken at Crypto conferences this year and has pledged to make the U.S. the Crypto capital of the planet. Kamala Harris’ team has similarly reached out to crypto-backing organizations to discuss further alignment of interests.
Why This Matters: Most simply put, “Money moves the needle”, as stated by Coinbase CEO Brian Armstrong. As of the 2010 Citizens United Ruling, corporations are allowed an unlimited amount of election spending–a major turning point in campaign finance. Corporations have taken advantage of this change, pouring money into Political Action Committees (PACs) that support their desired candidates by influencing voters. Coinbase, along with other large crypto institutions have contributed heavily to the Fairshake PAC, which “supports candidates…providing blockchain innovators the ability to develop their networks under a clearer regulatory and legal framework.” This support comes in the form of independent activities executed by the organization to influence voters, including political ads and other initiatives.
The influence that these crypto backers have is extremely consequential, and is likely to dictate the winner of our next presidential election. Surprisingly, while the Fairshake PAC explicitly supports candidates that will drive forward their agenda, they strategically exclude the mention of crypto in all advertisements, and instead utilize other means to appeal to voters. According to the DC-Based think tank Public Citizen, crypto-backed PACs have achieved their preferred outcome in over 85% of primary races. But with bitcoin being more volatile than the S&P 500 and even gold, it is fair to question the long-term stability of digital assets, as both new and experienced investors seek to build wealth.
Situational Awareness: A significant segment of the population, particularly those under 40 and without college degrees, along with people of color—representing 38% to 44%—is poised to shape the future of the industry. And with the industry and its impact growing rapidly; the U.S. is projected to generate $9.788 million of the $56.7 billion global share this year. It’s crucial to harness this growth by fostering inclusivity and accessibility, ensuring that diverse voices can participate and benefit from the evolving landscape.
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