Public Citizen has released a report that sheds light on how funds from cryptocurrency companies are likely to shape the 2024 US elections. The report, dated August 21, highlights that approximately $119 million has been utilized by crypto firms to sway federal elections, primarily via contributions to political action committees (PAC) such as Fairshake.
How Are Crypto Firms Involved?
The report indicates that nearly 48% of the $248 million in corporate funds spent on the 2024 US elections originate from crypto enthusiasts, with Coinbase and Ripple contributing the most. Public Citizen’s analysis of Federal Election Commission (FEC) filings reveals that donations from these crypto companies have far outstripped those from Koch Industries, long known for its support of right-wing politicians.
Which Companies Are Contributing?
Notably, Fairshake received around $108 million directly from firms poised to benefit from the PAC’s activities. Major contributors include Coinbase, Ripple, and Gemini co-founders Cameron and Tyler Winklevoss, as well as Coinbase CEO Brian Armstrong. Despite Ripple facing a legal setback against the US Securities and Exchange Commission in August, Coinbase continues its legal battles with the regulator.
Key Influences on Electoral Races
Fairshake and its affiliates, such as Defend American Jobs and Protect Progress PACs, have played influential roles in critical primaries leading up to the general election in November. Public Citizen reports that candidates supported by these PACs won 36 out of 42 races, thanks to attack ads against anti-crypto candidates or media buys backing pro-crypto contenders.
Potential Election Outcomes
With control of the US Senate, House of Representatives, and the presidency at stake, the 2024 elections could swing in favor of either major political party. Tight races are anticipated, making external financial influences potentially decisive for undecided voters.
Strategic Spending Plans
Fairshake has earmarked $12 million to support Republican Bernie Moreno against incumbent Democrat Sherrod Brown in the Ohio Senate race. Additionally, Democrat Jon Tester, seeking re-election in Montana, may face financial opposition from the crypto Super PAC.
Concrete Insights
Concrete insights from the Public Citizen report include:
- Crypto firms have allocated $119 million to influence federal elections.
- 48% of corporate election funds come from crypto supporters.
- Fairshake, a major PAC, is receiving significant contributions from the crypto industry.
- Crypto-backed candidates have won the majority of races influenced by PAC spending.
- Strategic spending continues, targeting specific Senate races.
Conclusion
As the 2024 elections approach, the impact of cryptocurrency funding on political outcomes becomes increasingly evident. The substantial financial contributions from the crypto sector highlight its growing influence within the political arena, signaling a pivotal role in shaping future policy directions.