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The cryptocurrency industry made a powerful statement in the 2024 election, spending an estimated $135 million to support more than 50 candidates across the U.S. In a remarkable outcome, 48 out of 48 candidates backed by crypto’s largest political action committees (PACs) emerged victorious, signaling a significant milestone for crypto political influence. With key wins in both the House and Senate, the industry has positioned itself as a serious player on Capitol Hill, aiming to shape the legislative landscape for blockchain and digital assets.
Record-Breaking Spending for a Political Shift
Crypto’s biggest PAC, Fairshake, alongside affiliated PACs like Defend American Jobs and Protect Progress, has raised and deployed funds from industry giants such as Coinbase (NASDAQ:COIN), Ripple Labs, and venture capital firm Andreessen Horowitz. Their combined spending has outpaced traditional donors, trailing only the fossil fuel industry in total political contributions. Fairshake’s influence, which swayed races nationwide, marks a new approach for crypto PACs, where the focus was on electing industry-friendly candidates without overtly promoting crypto.
One of the most significant victories was in Ohio, where Fairshake spent over $40 million to support Bernie Moreno, a Republican who unseated long-time Democratic senator Sherrod Brown. Notably, campaign messaging rarely mentioned crypto, instead focusing on economic policies, Social Security, and energy independence, showing how the industry is shifting its strategy to appeal to broader voter bases while securing allies.
A New Era of Crypto Political Influence and Legislative Impact
Following the election, a coalition of crypto lobbyists celebrated “the most pro-blockchain and pro-crypto Congress in history,” calling on President-elect Donald Trump to remove SEC Chair Gary Gensler. The SEC’s strict approach to crypto regulation has long been a point of contention within the industry, with Coinbase CEO Brian Armstrong and other leaders hoping to soften regulatory stances.
With election victories in place, crypto PACs aim to solidify these gains in the next legislative cycle. Coinbase and Ripple are expanding their lobbying efforts, adding more representatives to advocate for favorable policies. Meanwhile, Andreessen Horowitz is establishing a Washington office to deepen the sector’s engagement with policymakers. Such efforts underscore the industry’s commitment to long-term political influence beyond just campaign contributions.
Crypto vs. Established Donors: Outspending Competitors
Crypto PACs’ recent spending efforts highlight a growing shift in corporate political influence. Fairshake and its affiliates have outspent traditional corporate donors like Koch Industries and Chevron Corp., focusing on incumbents and challengers who support innovation and deregulation in the blockchain space. Their strategy also serves as an “intimidation tool,” according to Public Citizen’s Rick Claypool, pressuring politicians to adopt pro-crypto stances without alienating the broader voter base.
In Michigan, Protect Progress spent $10 million supporting Elissa Slotkin and Ruben Gallego, both of whom previously voted for pro-crypto legislation. With such heavy investment in these candidates, the industry aims to build a reliable base of crypto-friendly legislators in Congress, ensuring favorable votes on critical issues.
Challenges and the Road Ahead
Despite these gains, crypto’s political journey faces obstacles. Proposed trade tariffs and regulatory shifts under President-elect Trump could pose challenges, particularly with tariffs on goods from China, where some crypto manufacturing supply chains are based. Higher tariffs could increase costs for companies like Nvidia (NASDAQ:NVDA) and other tech firms working in blockchain, raising broader questions about the cost-effectiveness of supporting crypto growth.
Moreover, spending alone doesn’t guarantee favorable legislation. As Peter Loge from George Washington University noted, campaign contributions secure meetings but don’t ensure policy changes. Crypto PACs will need to consistently support candidates over multiple election cycles to see meaningful regulatory shifts.
Long-Term Plans and a Template for Future Influence
Fairshake and its affiliates are already gearing up for the next election cycle, with Coinbase committing an additional $25 million and Andreessen Horowitz adding $23 million to campaign funds for the 2026 midterms. This sustained investment reflects a strategic approach that other industries may emulate, focusing on building long-term relationships with candidates and ensuring repeated support.
As crypto continues to gain momentum, the industry’s deep pockets and strategic alignment with key issues like economic growth and innovation position it as a potent force. While crypto PACs have largely avoided discussing blockchain directly with the public, their success shows that targeted spending can drive political influence in ways that align with core business objectives.
The 2024 election marks a turning point for crypto’s role in U.S. politics. By flexing its financial muscle and strategically supporting candidates, the cryptocurrency industry is ensuring its voice will be heard in Congress, setting the stage for favorable legislation and regulatory shifts that could redefine the future of blockchain in America.
Featured Image: depositphotos @ EdZbarzhyvetsky