Over $238M Crypto Donations Seen This US Election

The 2024 US elections have transformed the crypto landscape, propelling it into the spotlight of the global financial arena.

For the first time, crypto donations have surpassed $238 million, outpacing traditional sectors like oil and pharmaceuticals.

This surge in political contributions is likely to influence lawmakers in Washington, making them more receptive to the digital assets industry.

According to Federal Election Commission filings, the $238 million comprises individual donations and contributions to super PACs, with a significant portion coming from prominent players in the crypto space.

Among the largest contributors are major entities such as Coinbase, blockchain payments firm Ripple, and venture capital giant Andreessen Horowitz, collectively donating over $160 million to pro-crypto super PACs supporting candidates like John Deaton in the Congressional race.

A survey conducted by the analytics platform Breadcrumbs in partnership with FOX Business highlighted the substantial nature of these crypto donations.

James Delmore, a research analyst at Breadcrumbs noted on the development:

“The crypto industry is sending a clear message to American politicians and elected officials with these donations: Current cryptocurrency regulations and policies are not working in the U.S.”

Notably, out of the total $238 million, $181 million was directed to super PACs, while $57 million came from individual contributions from industry leaders, including Ripple co-founder Chris Larsen and the Winklevoss twins, founders of the Gemini crypto exchange, as well as Marc Andreessen and Ben Horowitz, founding partners of Andreessen Horowitz.

Crypto's Expanding Political Power and the Resistance

Both Donald Trump and Kamala Harris have significantly benefited from crypto donations in the current US election cycle, with Trump capturing over 50% of the total contributions.

According to FEC data, the two candidates have collectively raised $34 million, but Trump has garnered more than $22 million from just 17 major donors.

In contrast, Harris has raised $12 million, with a remarkable 99% of that amount coming from a single source—Ripple co-founder Chris Larsen.

The competitive landscape also extends to other pro-crypto candidates.

In Ohio, the race for the Senate seat is particularly close, with incumbent Democratic Senator Sherrod Brown leading Republican Bernie Moreno by a mere 1%.

Throughout the campaign, Moreno has actively engaged the crypto community and has received over $40 million from a pro-crypto super PAC, raising questions about whether the crypto electorate could ultimately sway the election results.

Coinbase's Chief Legal Officer, Paul Grewal, emphasized this point, highlighting the significant emergence of crypto voters.

However, the substantial financial backing has drawn criticism from some observers, who perceive these large donations as an attempt by the industry to shape policy in its favour.

Rick Claypool, research director at consumer advocacy organisation Public Citizen, stated:

“The millions crypto corporations and executives are spending is a brazen attempt by a relatively small sector to distort U.S. democracy to serve its profit-maximizing whims. By spending so much, the crypto sector has made its demands for light touch regulation and minimal enforcement impossible to ignore.”