Cryptocurrency firms have invested over $119 million into the 2024 US federal elections, according to a recent report from Public Citizen. This substantial influx of cash represents nearly half of all corporate contributions for the current election cycle, which have reached a total of $248 million.

A Surge in Crypto Contributions

The cryptocurrency sector’s newfound political clout is highlighted by its significant financial input into the 2024 elections. The majority of these funds have been channeled through Fair shake PAC, a super PAC dedicated to supporting candidates with favorable views towards the crypto industry. Fair shake PAC has raised $202.9 million this year, with over $107.9 million sourced from major crypto entities such as Coinbase and Ripple.

This surge in donations marks a pivotal moment for the crypto industry, which has previously played a relatively minor role in political financing compared to traditional corporate contributors. In contrast, Koch Industries, a longstanding player in political contributions, has contributed $25 million this election cycle through its Americans for Prosperity Action PAC—an amount dwarfed by the crypto sector’s contributions.

Impact of Supreme Court Ruling

The rise in corporate political spending, particularly from the crypto industry, follows the 2010 Supreme Court ruling in Citizens United v. Federal Election Commission. This landmark decision allowed corporations to spend unlimited amounts on election-related activities, provided there is no direct coordination with candidates. Since this ruling, corporate contributions have seen a steady increase, but the crypto sector’s rapid ascent in 2024 is particularly notable.

Historical data reveals that by 2020, corporate contributions to super PACs totaled $313 million. In the past three election cycles, the crypto sector alone has contributed $129 million, with the bulk of this amount being donated in 2024.

Influence on Elections and Policy

The impact of this financial influx is already being felt in various states. In Montana, for instance, Senator Jon Tester has shifted his stance to support pro-crypto legislation, a change attributed to the substantial backing from crypto-supported super PACs, despite his previous skepticism toward the sector.

Crypto-backed super PACs have been involved in 46 primary races this year, with their favored candidates emerging victorious in 36 of these contests. This remarkable success rate underscores the growing influence of crypto money in shaping electoral outcomes.

Legal and Ethical Concerns

The massive increase in crypto political contributions has not been without controversy. Public Citizen, a consumer advocacy group, has raised concerns regarding the legality of these contributions. On August 1, the group filed a complaint with the Federal Election Commission questioning whether donations from Coinbase—a federal contractor—comply with existing anti-“pay-to-play” regulations.

The legal scrutiny reflects broader concerns about the potential implications of rising corporate influence in US elections. If this trend continues, other industries might adopt similar strategies, further escalating the role of corporate contributions in shaping political landscapes.

Looking Ahead

As the 2024 election cycle progresses, the growing financial power of the crypto industry will likely continue to influence political dynamics. The significant contributions made by crypto firms highlight a shift in the traditional power structures of political financing and suggest a future where industry-backed PACs could play an increasingly prominent role in shaping election outcomes and policy decisions.