‘Big Crypto’ dominates US election spending and exploits consumers, report finds

Crypto companies have become the dominant force in federal election spending, spending over $119 million to influence US election results.

Almost half of corporate donations to this year’s U.S. elections came from cryptocurrency supporters, totaling $248 million, according to a report by nonprofit organization Public Citizen.

This makes the crypto industry the top political spender in 2024, with Koch Industries, known primarily for its oil and gas, coming in second, contributing $28.25 million to support Republican candidates and causes.

According to the report, this large investment was primarily funneled into the nonpartisan super PAC Fairshake, which is dedicated to electing pro-crypto candidates and defeating industry skeptics.

One of the general concerns about the spending in the report was that crypto-influenced lawmakers could undermine consumer protections and financial system safeguards.

“Crypto-influenced lawmakers doing what they can in the interest of Big Crypto means weaker protections to prevent individual consumers from being scammed by reckless crypto scams, and softened regulations to protect our financial system from disruptive innovations that exploit consumers and enrich insiders.”

Public Citizen report

Unprecedented spending

Crypto companies have spent $129 million over the past three election cycles, an amount that accounts for 15% of all known corporate donations since the Supreme Court’s 2010 Citizens United decision that allowed companies to make unlimited donations to super PACs.

Across cycles, 92% of this spending occurred in 2024 alone.

Data source: OpenSecrets.org
Chart: Public Citizen Crypto’s political spending

The report highlights how spending has paid off in the U.S. political landscape.

According to the report, crypto companies pledged support in the Montana senate race without specifying a candidate. At the same time, Senator Jon Tester voted in favor of pro-crypto legislation despite previous skepticism.

The House Republicans’ bill, known as the Financial Innovation and Technology for the 21st Century Act, or FIT21, was approved by 71 House Democrats in defiance of the Biden administration. If enacted, the legislation is expected to legitimize the crypto industry.

Additionally, politicians such as Donald Trump, JD Vance, and members of Kamala Harris’ team have also made pro-crypto movements, indicating the crypto sector’s increasing influence on political stances and decision-making processes.

Adilcevaz

The biggest beneficiary of this crypto influx, Fairshake PAC, has raised $202.9 million to date, with more than half of that funding ($107.9 million) coming directly from companies like Coinbase and Ripple (XRP).

The rest of Fairshake’s funding comes from billionaire crypto executives and venture capitalists, including founders Andreessen Horowitz and the Winklevoss twins.

Warnings about cryptocurrencies influencing elections

The surge in institutional spending is seen as an aggressive move by the crypto industry to push its regulatory agenda to the forefront of the 2024 elections, but the strategy is not without controversy.

The report argues that critics say cryptocurrencies’ overwhelming influence in politics could undermine the public interest and lead to private, profit-driven goals.

“We are tired of elected officials looking the other way because influential billionaires and big corporations tell them to,” the report said. “Regulators and lawmakers must be free to carry out their public interest missions without fear of political attack from corporate interests.”

This trend could increase institutional influence and undermine established electoral norms, further increasing the power of wealthy interest groups in the political process, the report warned.