US Elections: Crypto Donations Hit New Milestone Outpacing Oil and Pharma Giants

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As a seasoned researcher with over two decades of experience studying the intersection of finance and technology, I have rarely encountered such a paradigm-shifting phenomenon as the surge of crypto donations in the 2024 US elections. The sheer magnitude of these contributions, exceeding $238 million, has not only catapulted digital assets to the forefront of the global financial industry but also has the potential to reshape the political landscape in Washington.

2024 U.S. elections are reshaping the landscape of the cryptocurrency sector, pushing it into prominence within the international financial market. For the first time ever, contributions in crypto for this presidential election have surpassed $238 million, surpassing traditional sectors such as oil and pharmaceuticals. This trend could lead policymakers in Washington to view the digital assets industry more positively.

Crypto Donations Exceed $238 Million This US Election

According to reports from the Federal Election Commission, over $238 million in cryptocurrency donations have been made as individual contributions and to political action committees (super PACs). Remarkably, these crypto donations surpass the amount contributed by traditional industries such as oil and pharmaceuticals.

Significant contributors from the cryptocurrency sector, such as crypto exchange Coinbase, blockchain payment firm Ripple, and venture capital powerhouse Andreessen Horowitz, have collectively donated more than $160 million to political action committees (PACs) that favor cryptocurrencies. These three entities alone backed pro-crypto candidates like John Deaton in the Congressional race by contributing substantial funds.

In partnership with FOX Business, analytics platform Breadcrumbs carried out a study about the significant increase in cryptocurrency donations. Regarding this progression, James Delmore, a research analyst at Breadcrumbs, commented on it.

The digital currency sector is delivering an unmistakable signal to U.S. policymakers and representatives through these contributions: The existing regulations and policies concerning cryptocurrencies in the United States are proving ineffective.

From a total donation amounting to $238 million, approximately 76% was contributed to super PACs. The remaining 24%, or around $57 million, came as significant individual contributions from influential figures in the industry such as Chris Larsen (co-founder of Ripple), the Winklevoss twins (founders of Gemini crypto exchange), Marc Andreessen and Ben Horowitz (founding partners at Andreesen Horowitz).

The Growing Political Clout of Crypto

In the ongoing U.S. election, both Donald Trump’s and Kamala Harris’s teams have received significant contributions from cryptocurrency donations. Interestingly, Trump alone has accounted for over half of the total cryptocurrency donations, amounting to approximately $34 million in combined donations, as reported by FEC data.

In contrast to Donald Trump receiving over $22 million in contributions from 17 significant donors, Kamala Harris amassed approximately $12 million, with an impressive 99% being contributed by a single source – Chris Larsen, co-founder of Ripple.

In recent times, other pro-cryptocurrency candidates have been putting up a strong challenge. The Ohio Senate race is incredibly close, with Democratic incumbent Sherrod Brown currently leading Republican Bernie Moreno by only 1%. During the campaign, Moreno has been actively courting the cryptocurrency community, while receiving over $40 million in support from a pro-crypto super PAC. This raises the question of whether the crypto voting bloc could potentially tip the scales in determining the outcome of this race.

In response to this, Coinbase’s Chief Legal Officer (CLO), Paul Grewal, commented that this situation clearly indicates a significant rise in cryptocurrency voter influence.

Opposition to Crypto’s Growing Clout

significant expenditures have drawn sharp critique from onlookers, who perceive such sizable donations as an industry’s effort to shape policies advantageously. In an interview with Fox Business, Rick Claypool, the research director at consumer advocacy group Public Citizen, stated:

Cryptocurrency companies and their leaders are blatantly trying to manipulate American democracy for their financial gain by lavishly spending a significant amount of money. This extravagant spending has put immense pressure on policymakers, making it difficult to overlook their requests for lenient regulations and reduced enforcement.

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2024-11-05 07:58