Cryptocurrency Firms Spend $134 Million on US Elections

Cryptocurrency companies have expended $134 million on funding election campaigns in the United States for 2024, according to a report by the Center for Political Accountability (CPA).

This has sparked concerns about the industry’s influence on political processes and potential regulatory implications.

“Companies making such contributions may seek to create a favorable regulatory environment, but these political donations further undermine public trust and expose firms to legal, reputational, and business risks that cannot be ignored,” the report states.

A significant portion of the funds was channeled through the Fairshake political action committee (PAC), supported by companies like Coinbase, Ripple, and Andreessen Horowitz. The PAC allocated over $40 million to support candidates with pro-cryptocurrency stances.

Some regulators have already taken note of the activities of cryptocurrency firms. In August 2024, the non-profit organization Public Citizen filed a complaint against Coinbase with the Federal Election Commission, citing alleged violations of federal election finance laws.

Despite the criticism, Coinbase later allocated an additional $25 million to Fairshake for the 2026 midterm elections.

“The stakes are too high to stand on the sidelines, and that is why we at Coinbase are proud to contribute,” company representatives stated.

Author and intergovernmental blockchain expert Andy Lian views these expenditures as “necessary for regulatory clarity, which is crucial for stability and growth.”

“This is likely to boost investor confidence by reducing uncertainty, as evidenced by the success of pro-cryptocurrency candidates, which has fueled market sentiment, such as the post-election rise in Bitcoin,” the expert noted.

Regarding the “regulatory capture” scenario, where the interests of major players dominate, Lian sees this as part of the organic growth of the emerging crypto industry.

Debates over the role of digital assets in politics followed the collapse of the meme coin LIBRA, indirectly linked to Argentine President Javier Milei. According to Lookonchain, some users twice recorded significant losses from investments in the token. Total losses for nearly 86% of LIBRA traders amounted to $251 million, reported Nansen.

Following the scandal with the “Argentine” meme coin, more than 100 fraud complaints have been filed by state authorities, indicating the risks associated with the executive branch’s encouragement of “any kind of unregulated securities.”

On March 7, the first crypto summit was held at the White House, focusing on the US government’s changing approach to the digital asset industry.