Ripple and Coinbase’s $78M Gamble on 2024 US Elections

Crypto Giants Back Political Action

Cryptocurrency leaders Ripple and Coinbase, along with other industry giants, have plunged a colossal $78 million into super Political Action Committees (PACs). Their goal? To decisively influence the 2024 US elections. This move marks a bold stride in the crypto sector's journey to shape policy landscapes in favor of digital assets.

Revival of Political Influence in Crypto Sphere

This financial commitment represents a reinvigorated political engagement from the crypto industry. Key players, including the prestigious Andreessen Horowitz, the US-based Coinbase, Ripple, and the renowned Winklevoss twins, are at the forefront. Their actions signal a resurgence in the sector's political activities, filling the void left by the fall of previous crypto megadonor Sam Bankman-Fried.

Politico's reports reveal that these funds are earmarked for candidates who embrace crypto-friendly agendas. This strategy emerges as the crypto world faces intense scrutiny from federal regulators, making it a critical point in its political journey.

Strategic Investments in Political Campaigns

One super PAC, named Fairshake, has already channeled over $1.2 million into TV ads supporting House candidates. Meanwhile, two others, Protect Progress and Defend American Jobs, are biding their time, yet to reveal their spending plans.

Kara Calvert, Coinbase’s head of U.S. policy, in her interview with Politico, underscored the industry's resolve to be a formidable player in the upcoming elections. This initiative coincides with the industry's push for House GOP bills that seek to establish a novel regulatory framework for digital assets. These legislative efforts, however, are confronting hurdles in the Senate and from the Biden administration, primarily due to consumer protection and financial crime concerns.

Coinbase Leads the Charge for Crypto Advocacy

In a recent blog post, Coinbase called upon the crypto community to flex its political muscle against traditional banking and tech lobbies. The full roster of super PAC donors, including Circle, Kraken, Paradigm, Ripple, and Coinbase CEO Brian Armstrong, will be unveiled in next year's campaign finance reports.

Coinbase has already kick-started a grassroots advocacy campaign, and other crypto-aligned super PACs are expected to follow suit shortly. The objective is crystal clear: to position crypto-focused political action committees as strategic players in the political realm.

This substantial investment in super PACs by the cryptocurrency industry is more than just a political maneuver; it represents a crucial step towards carving out a regulatory landscape that favors digital assets. With over 52 million Americans owning cryptocurrencies, the industry's influence in the 2024 elections could significantly alter the future of digital currency in the US and potentially worldwide.

While this investment showcases the crypto industry's determination to mould a favorable regulatory environment, it raises concerns about the growing influence of money in politics and the potential implications for democratic processes.