YEREVAN (CoinChapter.com) — There has been a significant movement within the cryptocurrency industry to influence the 2024 US elections. A group of super PACs, backed by cryptocurrency executives and investors, has raised around $78 million to support pro-crypto political candidates.
Did You know? A PAC, or Political Action Committee, is a type of organization in the United States that collects and spends money to elect or defeat political candidates. PACs are used to raise funds from individuals, organizations, or corporations and then use those funds to support or oppose political candidates, legislation, or ballot initiatives.
Crypto-Funded Elections in 2024
This initiative is seen as a major push to sway the 2024 elections in favor of those who are supportive of cryptocurrency and blockchain innovation.
Key players in this effort include prominent cryptocurrency firms like Ripple and Coinbase, as well as venture capital giant Andreessen Horowitz (a16z). These entities have pledged significant financial support to the Fairshake PAC, which is leading this campaign.
The CEO of Ripple, Brad Garlinghouse, has been vocal about the company’s intent to support pro-crypto candidates, emphasizing the need for the US to take a more proactive stance in the global cryptocurrency landscape.
Fairshake doesn’t simply support the presidential race but also aims to back candidates for other political offices who favor a more open and innovative approach to cryptocurrency and blockchain regulation.
Andreessen Horowitz (a16z) founder and managing director Chris Dixon also joined the cause.
There is a battle in Washington about the future of blockchain technologies: Certain policymakers believe it should be banned, while other people think it should have no guardrails. Neither of those options will allow the technology to reach its full potential and realign the future of the Internet away from Big Tech to the people who use it.
Commented Dixon
The PAC has already spent over $1.2 million on television ads supporting House candidates favorable to the crypto industry. These candidates span a range of political ideologies but have shown support for crypto-friendly legislation.
Notably, the latest prominent crypto figure who heavily funded elections was the now infamous Sam Bankman-Fried, founder of bankrupt crypto exchange FTX. As sources reported in November 2022, SBF was the second-largest Democratic Party donor ($40 million) after George Soros ($126 million) and could have been laundering money through Ukraine donations.
US Regulations Don’t Favor Crypto. Yet.
The crypto industry’s move to influence the 2024 elections comes at a time when it is facing increased scrutiny from federal regulators, particularly the Securities and Exchange Commission (SEC). By backing candidates who are more receptive to the crypto industry, these firms hope to foster a regulatory environment that is more conducive to the growth and legitimization of digital assets.
This political involvement is not without its controversies, especially in the wake of legal issues faced by some high-profile crypto companies, such as Binance and Coinbase. However, it underscores the industry’s recognition of the importance of political engagement to shape policies that could impact its future.
In addition to direct financial contributions to the PACs, crypto firms pursue efforts like grassroots advocacy campaigns. They raise awareness and support for crypto-friendly policies among the general public.
The mobilization of the crypto industry in the political arena reflects a broader trend of tech and finance sectors seeking to influence policy decisions that affect their operations and the future of technology in general
