The 2024 US election cycle is witnessing a remarkable surge in cryptocurrency funding, heralding a new era of political engagement for the rapidly evolving digital asset industry. Recent reports from CNBC and Politico indicate that crypto-linked political action committees (PACs) and individual donors have contributed millions to candidates from both the Republican and Democratic parties, particularly focusing on pivotal congressional races.
A standout example is the Trump 47 Committee, a pro-Donald Trump PAC that has raised an impressive $7.5 million in cryptocurrency donations since early June. Contributions have come in popular cryptocurrencies like Bitcoin, Ethereum, XRP, and stablecoins such as USDC. These donors represent a broad spectrum of supporters from over 15 states, including key battleground areas.
David Bailey, CEO of BTC Inc. and parent company of Bitcoin Magazine, is a notable contributor, donating over $498,000 in Bitcoin. Bailey has played a crucial role in transforming Trump’s views on cryptocurrency from skepticism to enthusiasm. Other significant contributors include Mike Belshe, CEO of BitGo, and Stuart Alderoty, Ripple’s legal chief, who donated $300,000 in XRP.
On the Democratic side, the crypto influence is equally strong. Chris Larsen, co-founder of Ripple, donated $1 million in XRP to Future Forward, a super PAC supporting Vice President Kamala Harris’s presidential campaign. This illustrates the bipartisan support within the crypto industry, with donations flowing to candidates across the political spectrum.
While the crypto industry is making substantial political investments, their messaging tactically avoids direct references to cryptocurrency. Crypto-backed super PACs like Defend American Jobs, Protect Progress, and Fairshake have collectively spent $125 million on independent expenditures this election cycle, accounting for 8% of all outside spending in congressional races. Their advertisements focus on broader issues like the economy, border security, and candidate biographies, rather than specific crypto topics.
This strategic approach reflects the industry’s intent to support candidates who align with their interests without making cryptocurrency a focal point of their campaigns. Many candidates endorsed by these PACs have expressed support for key legislative priorities relevant to the crypto sector, including proposals to establish regulatory frameworks for various classes of digital assets.
The increase in crypto-related political spending signals the industry’s ambition to shape future regulations and achieve broader mainstream acceptance. The recent debate between Senator Elizabeth Warren (D-Mass.) and her Republican challenger John Deaton highlighted the importance of cryptocurrency issues in the political landscape, showcasing the growing relevance of this topic.