Cryptocurrencies Lead Spending in U.S. Elections

The cryptocurrency industry is influencing this year’s elections, to which it has contributed $119 million.

Cryptocurrencies as major political backers

Cryptocurrency companies have morphed into the biggest political funders of federal elections, contributing nearly half of the corporate money going into this year’s elections, according to data from the nonprofit consumer advocacy organization Public Citizen.

The funds are coming primarily from two companies—Coinbase and Ripple—that are sending money to super PACs such as Fairshake PAC, which is dedicated to “elevating pro-cryptocurrency candidates and attacking cryptocurrency skeptics,” according to Public Citizen. Companies are not limited in the amount of money they can invest in political candidates following the 2010 Supreme Court ruling in Citizens United v. Federal Election Commission. However, they must contribute those funds to groups that are not directly involved with a candidate’s official campaign.

Elections 2024: The Future of the Cryptocurrency Industry

The cryptocurrency industry has especially stepped up spending for the 2024 election, following the contributions it made for the 2020 election, when Sam Bankman-Fried was still its figurehead. Now the stakes are higher. “The industry sees this election as existential,” Veronica McGregor, chief legal officer at cryptocurrency wallet firm Exodus, told Wired. “No matter who comes to power, changes are required for our industry to thrive as it should.”

Candidates’ Stance on Cryptocurrencies

The influx of money heading into the presidential election has prompted this year’s candidates to contemplate cryptocurrencies as an issue that will entice voters. Moreover, it could be a pivotal moment for an industry that has come under fire for skirting laws and has been the subject of federal investigations.

At the Bitcoin 2024 conference in Nashville in February, Trump—who called Bitcoin (BTC) “highly volatile and air-based” in 2019—said he was going to present a plan “to ensure that America is the cryptocurrency capital of the planet and the Bitcoin superpower of the world.” Trump has already won the support of several cryptocurrency enthusiasts, including running mate JD Vance, who owns at least $250,000 worth of Bitcoin. Harris, in turn, has been more cautious in his support for the industry. “She’s going to support policies that ensure that emerging technologies and this type of industry can continue to grow,” one of her campaign advisors told Bloomberg.

Crypto4Harris’ Role in the Harris Campaign

Behind the scenes, a new group called Crypto4Harris, headed by former PayPal chief blockchain strategist Johnathan Padilla, is dedicated to “developing a nuanced crypto-policy approach for the Harris for President campaign,” according to its X-page.

Padilla is confident the group can bridge the gap between the Democratic Party and the cryptocurrency industry, which seems to be coalescing around Trump. “People are angry. People are restless. But I think if the reset we’re talking about with the Harris campaign happens, we’ll be in a very good position for tensions to ease.” Padilla to Wired.