As a researcher with a background in political economy and a keen interest in emerging technologies, I find myself both intrigued and concerned by the recent surge of financial backing from the crypto industry in the 2024 US election cycle. My career has been marked by observing the impact of money on politics, and this trend is certainly a shift worth noting.
During the 2024 election cycle, the cryptocurrency sector has outpaced traditional industries in terms of campaign contributions, with the goal of shaping regulations in a way that is advantageous to them.
A review conducted jointly by blockchain analytics firm Breadcrumbs and FOX Business on Federal Election Commission (FEC) records shows that the digital asset industry has so far amassed at least $238 million in contributions, surpassing the donations from sectors such as oil and gas, pharmaceuticals, and financial heavyweights like Citadel.
Crypto Contributions Signal Urgent Need For Change
The substantial financial backing from the crypto industry comprises corporate donations to super Political Action Committees (PACs) and direct contributions to individual candidates from prominent industry figures.
As a crypto investor, I’m part of a community that includes heavyweights like Coinbase, Ripple Labs, and venture capital firm A16z. These influential entities have collectively contributed approximately $160 million to Political Action Committees (PACs) advocating for the crypto industry. They’re backing candidates who share our interests in this sector.
James Delmore, a research analyst at analyst firm Breadcrumbs, emphasized the significance of these donations from major industry players, telling FOX:
The crypto industry is sending a clear message to American politicians and elected officials: Current cryptocurrency regulations and policies are not working in the US.
Over the last few years, these same entities, Coinbase and Ripple Labs, have been under close examination by the U.S. Securities and Exchange Commission (SEC), leading to legal actions concerning their cryptocurrency activities, specifically in relation to their exchange and payment services.
Based on figures gathered by Breadcrumbs, around 76% of the total $238 million funds raised have been channeled towards Super PACs, whereas only about 24% or $57 million was distributed among individual candidates and their related committees.
Significant figures contributing to the project are led by Chris Larsen, one of Ripple’s co-founders, who has notably shown support for Vice President Kamala Harris by donating a sizable sum of approximately $11.7 million, primarily in the form of XRP, the native token of Ripple.
In the meantime, Donald Trump has received approximately $22 million from numerous figures within the crypto industry. This donation amount highlights the industry’s tendency to support candidates advocating for lighter regulation.
Wins Against Anti-Crypto Candidates
Contributions made by the sector suggest a calculated attempt to exert influence in Washington, especially considering the Biden administration’s regulatory style, which is perceived as unduly stringent by many within the industry.
On Tuesday, Donald Trump, a former U.S. president, publicly criticized the existing regulatory system and vowed to dismiss SEC Chair Gary Gensler immediately upon re-election to the White House. This stance seems to be attracting support from potential investors.
The industry’s financial influence is largely funneled through super PACs like Fairshake, which has raised $170 million and spent $135 million in this presidential election cycle. These PACs aim to support congressional candidates who are favorable to digital initiatives.
Previously, Fairshake effectively opposed politicians seen as unfavorable towards cryptocurrency, like California Representative Katie Porter and New York Representative Jamaal Bowman. Both of these individuals lost their primaries following substantial advertising expenditure against them.
On the other hand, Rick Claypool, a research director at Public Citizen, voiced criticism over the substantial donations from the digital asset sector. He argued that these contributions aimed to influence the direction of American democracy in favor of the industry’s objectives, as he put it.
In simpler terms, a large number of cryptocurrency companies and their leaders are aggressively trying to manipulate U.S. democracy to benefit their profit-driven interests. By investing such vast amounts, the cryptocurrency sector has ensured that their requests for lenient regulation and lax enforcement can no longer be overlooked.
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2024-11-06 10:42