rypto companies pour $119M into 2024 US federal elections, rivaling traditional powerhouses

Crypto companies are making their presence felt in the 2024 US federal elections, contributing over $119 million to influence the outcome. This amount, which represents nearly half of all corporate contributions, is being largely funneled through Fairshake PAC, a super PAC dedicated to supporting candidates who align with crypto interests.

A report by consumer advocacy group Public Citizen on Aug. 21 highlighted this significant involvement from the crypto industry. The total corporate contributions in this election cycle amount to $248 million, as reported by OpenSecrets.

According to the report, major crypto firms are contributing substantial sums to Fairshake PAC, which is aiming to sway the elections in favor of crypto-friendly candidates. Among the large donations, Coinbase is contributing $5 million, while Ripple is donating $3 million.

This level of spending by crypto companies marks a first in the US federal elections and is notably higher compared to traditional corporate heavyweights. For instance, Koch Industries, known for its significant political contributions, has donated $25 million in 2024 through its super PAC, Americans for Prosperity Action. However, this amount is dwarfed by the contributions pouring in from the crypto sector.

The report also noted the changes in the political landscape following the 2010 Supreme Court decision in Citizens United v. Federal Election Commission. This ruling allows corporations to contribute unlimited amounts to elections, as long as there is no direct coordination with candidates.

Since the Citizens United decision, corporate contributions have gradually increased. However, the rapid rise in spending from the crypto sector in 2024 is particularly noteworthy.

Based on the data available since 2010, corporate contributions to super PACs totaled $313 million by 2020. In contrast, the crypto sector alone contributed $129 million in the past three election cycles, with the majority of this amount being donated this year.

The report further delves into the impact of this spending, highlighting examples in several states. In Montana, Senator Jon Tester supported pro-crypto legislation after crypto-backed super PACs expressed interest in his race, despite Tester previously voicing skepticism about the sector.

Moreover, crypto-backed super PACs were involved in 46 primary races this year, and their preferred candidates were victorious in 36 instances. However, this surge in spending from the crypto sector has also raised concerns regarding the legality of these contributions.

On Aug. 1, Public Citizen joined a complaint filed with the Federal Election Commission, questioning whether contributions from Coinbase — a federal contractor — comply with existing anti-“pay-to-play” regulations. The complaint also raises legal questions about the large donations.

The report also sheds light on the broader implications of this increased spending by the crypto sector. Should this trend continue, it could prompt other industries to adopt similar strategies, potentially heightening the influence of corporate contributions in shaping election outcomes.

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