The Impact of the Encryption Industry on the Behind-the-Scenes Forces of the 2024 US Election

On November 6, 2024, the high-profile U.S. election came to an end. The successful election of Trump, who is known as a "crypto supporter", may mean that the crypto space will have more voice in the White House. At the same time, the price of bitcoin broke through the $75,000 mark and reached another all-time high. And the interest groups and beneficiaries behind these events are gradually emerging.

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Crypto Lobbying: The Race for Money from Congressman to President

On May 22, the U.S. House of Representatives passed the 21st Century Financial Innovation and Technology Act (FIT21) by a vote of 279 to 136. The bill, which is led by the Republican Party, aims to establish a regulatory framework for digital assets and promote the development of the crypto industry.

The passage of FIT21 is inextricably linked to the large campaign spending provided by crypto groups to legislators. Political fundraising data tracking shows that pro-crypto political action committees (PACs) have poured more than $133 million into elections, influencing 51 campaigns. These PACs mainly support candidates who have pledged not to regulate cryptocurrencies harshly. The three most active PACs are Fairshake, Protect Progress, and Defend American Jobs.

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The rise of super PACs stems from a 2010 Supreme Court ruling that allowed businesses and unions to make unlimited spending on political activities. Subsequent jurisprudence has further established the legitimacy of "Super PACs" (Super PACs), which can accept and dispose of unlimited contributions, as long as they are not directly coordinated with candidates or political parties.

Fairshake, for example, spent more than $10 million to support California Rep. Katie Porter's candidacy for the Senate, though ultimately failed. The PAC also invested more than $2 million to support the re-election of Democratic Rep. Jamaal Bowman in New York's 16th district. Although the two candidates lost in their respective primaries, Fairshake has channeled its energy and funds to support candidates across party lines.

In the most expensive election in Ohio's history, Defend American Jobs spent more than $40 million to support Republican candidate Bernie Moreno for the Senate. A spokesperson for Moreno said Bernie has a deep understanding of blockchain technology and will work to ensure U.S. leadership in this area.

Protect Progress has committed more than $10 million to support Rep. Elissa Slotkin's campaign. Slotkin voted in favor of the 21st Century Financial Innovation and Technology Act. The PAC is also committing $10 million to Rep. Ruben Gallego, who believes cryptocurrencies are critical to driving technological innovation, economic growth, and job creation.

The CEO of a cryptocurrency trading platform recently said in an interview with the media: "Regardless of the outcome of this election, this will be the most pro-crypto Congress we have ever seen." "

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Trends in political donations from crypto institutions

Through the data on political donations, we can get a glimpse of the funding behind the political arena. Trump 47, Trump's political action committee, raised a total of $327.47 million in 2024. Among donors who donated more than $1 million, Winklevoss Capital Management donated about $2.366 million, making it the second largest donor. The founder of the company is Tyler Winklevoss, the founder of a cryptocurrency exchange.

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Another action committee, Right For America, raised $68.46 million this year, with $5 million donated by A16Z founders Marc Andreessen and Ben Horowitz. It's worth noting that the crypto industry's donations don't just benefit Republicans, and most of the funders of the three pro-crypto super PACs don't have a clear partisan background. Their goal is to elect crypto-friendly politicians.

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On the institutional side, most of the donations came from the three major cryptocurrency trading platforms, which invested $46.5 million, $46.5 million, and $15 million, respectively, for a total of about $108 million. The A16Z also invested $45.2 million.

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According to a recent report released by the nonprofit watchdog group Public Citizen, nearly half of the corporate money flowing into the general election came from the cryptocurrency industry.

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Future Implications: Who has fallen in the game?

As the regulatory framework for cryptocurrencies in the United States gradually improves, leading exchanges, venture capital firms, and foundations have already made early arrangements. The donor lists of three major super political action committees are worth investors' attention.

In addition to the well-known A16Z and several large trading platforms, it is also worth pondering the fact that Multicoin appeared on the list of donors of three PACs at the same time with an amount of only $25,000.

Despite the ideals of decentralization, the game between crypto and regulation will continue. In this far-reaching political wrestling, various forces are making careful and strategic arrangements.

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