Crypto Industry Spends US$78M to Influence 2024 Elections

Crypto industry ramps up political spending ahead of 2024 elections

The crypto industry has been ramping up its political spending in the US, as it seeks to gain more influence and favorable regulation in the 2024 elections. According to data from the Federal Election Commission (FEC), the crypto industry has spent over US$78 million on lobbying, donations, and super PACs in 2023, surpassing the US$22 million spent in 2022.

The crypto industry faces several challenges and opportunities in the US, as Congress and regulators debate how to oversee the fast-growing and volatile sector. The industry hopes to shape the policies and laws that will affect its future, such as the definition and taxation of digital assets, the oversight and innovation of decentralized finance (DeFi), and the protection and privacy of crypto users.

One of the main vehicles for the crypto industry to insert itself into the 2024 elections is the Fairshake super PAC, which was launched in October 2023 by a group of prominent crypto investors and entrepreneurs, such as Chris Dixon of Andreessen Horowitz, Sam Bankman-Fried of FTX, and Brian Armstrong of Coinbase. The super PAC has pumped over US$1.2 million into television ads supporting House candidates who are friendly to crypto, such as Rep. Tom Emmer (R-MN), Rep. Darren Soto (D-FL), and Rep. Ted Budd (R-NC).

The super PAC's mission is to "support candidates who understand the potential of crypto and blockchain to create a more open, transparent, and accessible financial system," according to its website. The super PAC also aims to educate voters and lawmakers about the benefits and challenges of crypto and to counteract the lobbying efforts of the traditional financial industry, which is often seen as hostile or skeptical of crypto.

Another major player in the crypto industry's political spending is Sam Bankman-Fried, the billionaire founder of the crypto exchange FTX, who has far outspent all others in the crypto industry. He has contributed nearly US$40 million to campaigns this election cycle, making him the sixth-largest individual donor in the US, according to OpenSecrets. Most of his spending was in support of Democrats, such as President Joe Biden, Sen. Mark Kelly (D-AZ), and Sen. Raphael Warnock (D-GA).

Bankman-Fried, who is estimated to be worth more than US$20 billion, has said that he is motivated by his progressive values and his belief that crypto can be a force for good in the world. He has also said that he wants to help the crypto industry gain more legitimacy and recognition in the US and to prevent harmful or restrictive regulation that could stifle its innovation and growth.