Crypto Dominates Corporate Election Spending in 2024

Crypto companies have contributed nearly 48% of the $248 million in corporate money to influence federal elections this year, according to a recent report. This spending is a new industry approach, leveraging political donations to shape the regulatory environment.

The report also says that Fairshake, the crypto industry’s leading political action committee (PAC), has raised $202 million, with nearly $114 million sourced from corporate sponsors. Significant contributions have come from Coinbase and Ripple, two companies actively involved in regulatory battles. Fairshake’s fundraising success is attributed to its ability to attract substantial business dollars, alongside individual contributions from wealthy backers.

The report also notes that Fairshake has not aligned itself with any specific political party. Instead, the PAC has supported both Democrats and Republicans based on their stance toward the crypto industry. For the 2024 cycle, Fairshake endorsed an equal number of candidates from both parties in House races, with 18 endorsements in total.

Additionally, the PAC has backed two Democrats and one Republican in Senate races. This cross-party strategy has drawn criticism from political partisans, highlighting the PAC’s focus on advancing crypto-related policies rather than adhering to traditional party lines.

In its media campaigns, Fairshake has avoided making cryptocurrency a direct election issue. Instead, it has funded negative ads targeting specific candidates in Democratic primary races. For example, the PAC ran attack ads against Rep. Katie Porter in California’s Senate primary and Rep. Jamaal Bowman in New York’s 16th Congressional District. The ads, which did not mention digital assets, were designed to damage the candidates’ reputations. Both candidates ultimately lost their primaries, which was viewed as a success for Fairshake’s objectives.

The PAC’s endorsements also include Republican candidate Bernie Moreno in Ohio’s Senate race, where the goal is to challenge incumbent Sen. Sherrod Brown, a known critic of cryptocurrency. According to the author of the report, Rick Claypool, “No industry has ever before so wholeheartedly embraced raising as much directly from corporations and openly using that political war chest… to discipline lawmakers toward adopting an industry’s preferred policies.“

In a post on X, Claypool said that extensive promotional efforts surrounding cryptocurrency—remarkably devoid of any explicit mention of crypto—are undermining candidates who are viewed as detractors and candidates are changing their stances to garner favor within this market.

Big Crypto ad campaigns (that don't mention crypto!) are helping defeat candidates seen as critics, while other candidates switch positions & pander to the sector.

Crypto's political spending shows just how vulnerable our democracy is to a tsunami of corporate money.
— Rick Claypool (@RickClaypool) August 21, 2024

The crypto sector’s strategy, according to Claypool, is clear: “Give crypto corporations what they want, or your political career gets it.”

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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