The influence of crypto firms on the 2024 US elections has been major. These firms have contributed 48% of the total $248 million in corporate funds that have been directed toward the elections. Super PACs, Ripple, Coinbase, and the Winklevoss twins are some of the largest contributors. Crypto-backed candidates have also seen a lot of success in the primaries. Meanwhile, the Harris campaign has hinted that it might take a more pro-crypto stance, while Wyoming is planning to launch a state-issued stablecoin in 2025.
Crypto Giants Pour Millions Into 2024 Elections
A recent report by Public Citizen revealed the huge financial influence of cryptocurrency firms on the 2024 United States elections. The advocacy group revealed that these firms have poured approximately $119 million into federal elections, and primarily channeled funds through super political action committees (PACs) like Fairshake.
This amount is almost half of the total $248 million in corporate funds that have been directed toward the elections. Ripple and Coinbase were some of the industry giants that made the largest contributions.
Top 10 corporate campaign funders(Source: Public Citizen)
Public Citizen’s analysis of Federal Election Commission filings shows that the financial contributions from crypto firms have surpassed those of Koch Industries, which is a long-standing donor to right-wing politicians. The report also indicated that around $108 million of the funding into Fairshake came from corporations that will benefit from the PAC's activities, including Coinbase, Ripple, and key figures like Gemini co-founders Cameron and Tyler Winklevoss and Coinbase CEO Brian Armstrong.
According to Public Citizen, Fairshake’s corporate backing is unprecedented. Although unlimited corporate contributions have been allowed since the 2010 Citizens United ruling, Fairshake’s influence is second only to the super PAC focused on electing Republicans to the US Senate in terms of corporate money received.
The financial power of Fairshake and its affiliated PACs, Defend American Jobs and Protect Progress, have had a major impact on the 2024 primaries. According to Public Citizen, candidates that are supported by these crypto super PACs won 36 out of 42 races. Funds were being used for attack ads against "anti-crypto" candidates or media buys in favor of "pro-crypto" ones.
This influence could be pivotal in the upcoming general election in November, where control of the US Senate, House of Representatives, and the presidency is at stake. In fact, Public Citizen warned that the close partisan split in Congress means that the crypto sector’s influence in competitive races could tip the balance of power.
The report also suggested that the US Senate races in Montana and Ohio could become key battlegrounds for crypto super PACs. In Ohio, Fairshake has committed $12 million to support Republican Bernie Moreno against incumbent Democrat Sherrod Brown. The PAC also plans to spend a lot of money in Montana to challenge Democrat Jon Tester, who is up for reelection.
Crypto-Backed Ansari Secures Victory in Arizona
Yassamin Ansari, a Democrat running to represent Arizona’s 3rd Congressional District in the US House of Representatives, narrowly won a recount against fellow Democrat Raquel Terán by just 39 votes. According to an Aug. 20 report from the Associated Press, the recount was required under Arizona law after initial results showed Ansari leading by less than 0.5% of the total votes.
The final tally revealed that Ansari had 19,087 votes, while Terán received 19,048. Ansari will now face Republican Jeff Zink in the November general election.
Ansari's primary campaign received major backing from the Protect Progress super PAC, which is an affiliate of Fairshake and Defend American Jobs. The PAC spent more than $1.3 million on media support for Ansari. She is now the only candidate in Arizona to win a primary with the PAC’s support. Despite also supporting other candidates in Arizona, including Andrei Cherny and Blake Masters, Ansari was the sole beneficiary of the PAC’s financial aid to secure a victory.
So far, the very obvious influence of crypto-backed PACs in this election cycle has drawn a lot of criticism. California Representative Linda Sánchez accused the PAC of attempting to "buy a seat in Congress" by supporting Ansari. However, no further public comments were made by Sánchez after the recount results.
With the primary season nearing completion, Fairshake now appears to be shifting its focus to the general election. While some Democratic lawmakers, including Senate Majority Leader Chuck Schumer, shared plans to pass pro-crypto legislation by the end of 2024, the Harris campaign is still very silent when it comes to digital assets and blockchain issues. Meanwhile, Republican nominee Donald Trump has made many more favorable statements about cryptocurrencies during his campaign.
Harris Adviser Hints at Pro-Crypto Stance
A senior aide to Kamala Harris has indicated that the Democratic presidential nominee may support policies favoring the digital asset industry if she wins the upcoming November election. According to a report from Bloomberg, Harris’s senior campaign adviser, Brian Nelson, stated that the candidate will back policies to ensure that emerging technologies, like crypto, can continue to grow.
Nelson’s comments were made during a roundtable event at the Democratic National Convention in Chicago, where Harris is expected to officially accept her party’s nomination for the 2024 presidential race after Joe Biden’s decision not to run.The Harris campaign has been very silent about digital assets and blockchain technology, but these latest comments suggest a potential shift in approach.
The Harris campaign’s stance on digital assets was also a topic of discussion during an Aug. 14 virtual town hall meeting. As the election draws closer, industry leaders are beginning to take sides, with some like the Winklevoss twins backing Trump, while others advocate for a nonpartisan approach to crypto in US politics.
Wyoming Plans State-Issued Stablecoin for 2025
Wyoming Governor Mark Gordon recently addressed the Wyoming Blockchain Symposium, where he talked about the state's very progressive approach to blockchain innovation. At the Symposium, he also unveiled plans for a state-issued dollar-pegged stablecoin that is set to launch in 2025.
Gordon is Chairman of the Wyoming Stable Token Commission, and revealed that the state is working on backing the stablecoin with US Treasury bills and repurchase agreements. There are also plans to collaborate with exchange partners for a listing in the first quarter of 2025.
During his speech, Governor Gordon also criticized the federal government's handling of the 2007-2008 financial crisis, particularly the "too big to fail" bailouts, which he argued contradicted the principles of capitalism by preventing failure. He believes that Wyoming's approach, which values risk as essential for growth, positions the state as a leader in the digital asset space. Gordon is also concerned about the Federal Reserve banking system, and even called it a hindrance to innovation.
Wyoming's stablecoin initiative started with the establishment of the Stable Token Commission in July of 2023. The concept was initially proposed in a February 2022 bill, but was vetoed by Governor Gordon due to insufficient information and a lack of a solid business plan.
The proposal has sparked discussions about potential conflicts between state-issued stablecoins and the Federal Reserve. While some industry executives, like Umee CEO Brent Xu, foresee conflicts with the Fed, Wyoming Senator Chris Rothfuss argued that a state-issued, dollar-pegged token will not compete with the central bank, as it would represent assets issued by the Fed.
