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Update 5:40pm ET: Changes title, adds details
Cryptocurrency corporations, primarily Coinbase (NASDAQ:COIN) and Ripple — have so far invested more than $119 million in the 2024 US election, according to a report by consumer advocacy group Public Citizen.
According According to the report, crypto corporations dominated political spending in 2024, accounting for 48% of total corporate money contributed so far this year ($248 million so far).
“Money moves the needle,” said Coinbase (COIN) boss Brian Armstrong. crypto-4f9fc70a-8aca-4ebf-8977-35df739403b4.html” target=”_blank”>Axios Last year, for better or worse, this is how our system works.
In June 2024, Ripple CEO Monica Long said: technology/crypto-industrys-lobbying-drive-will-pay-off-us-elections-ripple-president-says-2024-06-04/” target=”_blank”>Reuters“I think as an industry, especially for U.S.-based companies, we're frustrated by the delay that the U.S. is having in setting standards.”
The cryptocurrency industry has seen a resurgence in 2024 after a series of high-profile bankruptcies in 2022 prompted increased regulatory scrutiny and crackdowns.
bitcoin (btc-USD) is up more than 45% year-to-date, comfortably outpacing the S&P 500’s gain of roughly 18%.
The U.S. Securities and Exchange Commission has sued several major cryptocurrency companies for alleged violations of securities law, including Coinbase (COIN) and Ripple.
The cryptocurrency industry has been pushing for a bill to be passed that would limit SEC oversight of the industry. It has also pushed for a bill to be passed that would create a comprehensive regulatory framework for its assets.
Most of the donations have gone to the Fairshake PAC, a cryptocurrency-focused super PAC that has raised $202.9 million. More than half of Fairshake's funding came from corporations that stand to benefit from the PAC's efforts, according to crypto-big-spending-2024/” target=”_blank”>report Coinbase (COIN) and Ripple stand out, mainly.
Fairshake describes its mission as supporting leaders “who champion the interests of progressive innovation, including blockchain technology and the cryptocurrency industry, through independent advocacy efforts.”
The PAC's backers include venture capital firm Andreessen Horowitz, Armstrong, Cameron Winklevoss and Tyler Winklevoss.
47% of Fairshake’s funding came from cryptocurrency executives and venture capitalists, including $44 million from founders Andreessen Horowitz, $5 million from the Winklevoss twins and $1 million from Armstrong.
Total corporate spending on cryptocurrency companies over the past three election cycles, totaling $129 million, is equivalent to 15% of all known corporate contributions since the Supreme Court's 2010 Citizens United ruling. 92% of corporate contributions to cryptocurrencies occurred in 2024.
The U.S. Supreme Court's ruling in Citizens United v. Federal Election Commission struck down certain campaign finance restrictions and allowed corporations and other outside groups to spend unlimited funds on elections.
Public Citizen called the surge in cryptocurrency contributions “unprecedented,” adding that spending by such companies is second only to the fossil fuel industry, which has spent $162 million over the past 14 years.
