The democracy advocacy group Public Citizen has sounded the alarm on the massive influx of cryptocurrency-related donations aimed at influencing the upcoming U.S. presidential election. Major players in the crypto industry, including Coinbase and Ripple, have emerged as some of the largest corporate political contributors this election cycle, pouring over $100 million into political action committees (PACs) that back candidates with pro-crypto stances.
The Numbers: A Closer Look at Crypto’s Political Spending
The scale of political contributions from the crypto sector is unprecedented. Of the $248 million in total corporate contributions identified by Public Citizen, crypto firms are responsible for nearly half—48%. Coinbase and Ripple, in particular, have been identified as the primary contributors, collectively funneling approximately $99 million into efforts to sway the 2024 elections in favor of candidates who are likely to support favorable regulatory environments for cryptocurrencies.
The substantial financial involvement of crypto firms, Public Citizen warns, could lead to weakened regulatory oversight, potentially endangering consumers while benefiting “Big Crypto.”
The Role of Fairshake PAC
A significant portion of this political spending has been channeled through Fairshake PAC, which has become the main vehicle for corporate crypto donations. The PAC has secured $202.9 million in total, with more than half—$107.9 million—coming directly from major crypto firms like Coinbase and Ripple. This funding has positioned Fairshake as one of the most influential super PACs in the current election cycle, rivaling even the major political fundraising platforms like ActBlue and WinRed.
Coinbase’s recent announcement of an additional $25 million donation to Fairshake underscores the aggressive spending by the crypto sector. This contribution brings Fairshake’s total to $160 million, marking it as one of the most well-funded efforts to shape the outcome of the November elections. The funds are being strategically deployed to support candidates—both Republican and Democrat—who favor light-touch regulation of the crypto industry.
According to Public Citizen, crypto corporations have contributed $129 million in the last three election cycles alone, accounting for 15% of the total corporate contributions of $884 million since the Citizens United decision. This dramatic rise underscores the growing influence of the crypto sector in American politics, with Coinbase now emerging as the second-largest corporate spender in federal elections, trailing only behind Koch Industries.
Concerns Over Regulatory Impact
Public Citizen’s report raises serious concerns about the implications of such large-scale spending. The organization argues that these donations are part of a “brazen and unprecedented attempt by a relatively small corporate sector to distort U.S. democracy to serve its private, profit-maximizing interests.” The potential for this financial power to sway lawmakers into enacting more lenient regulations on the crypto industry is seen as a significant risk, particularly for consumers who may be left vulnerable in a less regulated environment.
As the election approaches, the role of crypto money in U.S. politics will likely remain a contentious issue, with significant implications for the future of both the crypto industry and the broader regulatory environment.
