Super PACs in the Crypto Industry Building Massive War Chests for 2024 US Elections
A recent report by OpenSecrets.org uncovered that cryptocurrency industry Super Political Action Committees (PACs) have amassed a substantial $102 million war chest to exert influence over the upcoming 2024 US congressional elections. The data, compiled by Public Citizen, highlights the sector’s concerted efforts to sway elections in favor of pro-crypto candidates and impede regulatory measures to ensure compliance within the industry.
Crypto Billionaires Leading Funding Surge
Rick Claypool, a research director for Public Citizen and author of the report, noted a resurgence of crypto corporations, executives, and their allies in the political landscape, pouring millions into campaigns. Their goals reportedly include influencing elections, backing cryptocurrency-friendly candidates, and obstructing accountability measures for enforcing industry regulations.
- Over half of the raised funds come from direct corporate expenditures, primarily from Coinbase and Ripple Labs.
- Remaining contributions are from billionaire crypto executives and venture capitalists, such as Andreessen Horowitz, the Winklevoss twins, and Coinbase CEO Brian Armstrong.
- Four out of eight corporate Super PAC donors have either settled or faced charges by the US Securities and Exchange Commission (SEC) for securities law violations.
Strategic Political Maneuvers
The largest crypto Super PAC, Fairshake Political Action Committee, has been running political ads that purposefully avoid mentioning cryptocurrencies to sway voters using a manipulative strategy. The report also highlights the intervention of crypto Super PACs in primary races for the 2024 elections.
- Out of the six completed primaries, only one candidate backed by crypto suffered defeat.
- There are eleven ongoing primary races with crypto-backed candidates.
- Crypto Super PACs have committed funds to Senate races in Ohio and Montana, crucial battleground states in the general election.
Voters in ‘Swing States’ Advocating for Sensible Regulations
A study by Digital Currency Group (DCG) revealed that over 20% of registered voters in pivotal “swing states” view digital assets as a crucial issue in the 2024 election. The survey, conducted in partnership with The Harris Poll, emphasizes the importance of a pro-crypto stance among policymakers and candidates, highlighting the voters’ desire for reasonable regulations that protect consumers without hindering innovation.
Industry Impact on Swing State Voters
Julie Stitzel, Senior Vice President of Policy at DCG, stressed the significance of the crypto industry in the minds of swing state voters. A positive stance on virtual assets can prove beneficial for policymakers and candidates, according to the survey findings. Kristin Smith, CEO of the Blockchain Association, echoed this sentiment, underlining the growing influence of digital assets in shaping the electoral landscape.
The Future Influence of Crypto in Political Campaigns
The influx of funds from crypto industry Super PACs raises concerns about the potential impact on future elections and regulatory decisions. As the industry continues to grow and expand its presence in political arenas, the need for transparency, accountability, and fair representation becomes paramount.
Challenges and Opportunities Ahead
With significant financial backing from crypto billionaires, corporate entities, and venture capitalists, the industry’s influence is likely to increase in electoral processes. This presents both challenges and opportunities for policymakers, candidates, and voters to navigate the evolving landscape of cryptocurrency in politics.
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