Crypto’s Political Power Play: The 2024 Election Cycle

It’s hard to ignore the crypto-backed Political Action Committees (PACs) flexing their muscles in the 2024 US elections. These entities are pouring in some serious cash—over $119 million—to back candidates who are friendly to their agenda. It’s a game changer, and it’s making me think about how much these crypto execs and their PACs could tilt the scales of democracy.

Crypto’s Cash Cows

Let’s talk numbers for a second. When you break it down, the contributions from big crypto players like Coinbase and Ripple account for nearly half of all corporate political spending this election cycle. That’s wild! It’s not just about getting their guys elected; it’s about crafting a regulatory environment that suits them to a T.

And get this: they’re playing it smart by keeping it bipartisan. Fairshake, one of the main PACs, doesn’t care if you’re red or blue as long as you’re pro-crypto. They’ve got funds lined up for both sides of the aisle. This kind of strategy ensures they have friends no matter which way Congress swings.

The Big Players Step Up

Then you have some of the top crypto traders stepping into the limelight, and they’re not shy about showing their hand.

Take Brian Armstrong, CEO of Coinbase. He’s gone from neutral observer to active participant in American politics—backing Republican candidates who are openly supportive of cryptocurrency. That’s quite a pivot for someone whose company was previously apolitical!

And let’s not overlook Chris Larsen, co-founder of Ripple. He just dropped $10 million in XRP on a super PAC supporting Kamala Harris! Talk about putting your money where your mouth is. This donation might be one of the first major crypto contributions aimed at securing Democratic favor, but I doubt it’ll be the last.

The Trading Platforms Get Involved

It doesn’t stop there; even the platforms facilitating our beloved digital currencies are getting into the act.

Enter stage right: The Bitcoin Voter PAC! Backed by executives from companies like Marathon Digital Holdings and CleanSpark, this organization is running ads supporting Republican candidates who recognize Bitcoin’s “freedom.” They even released an ad for Texas Senator Ted Cruz—because nothing says pro-crypto like an endorsement from a politician who knows his mining!

And let’s not forget about the Texas Blockchain Council (TBC). They’re actively endorsing candidates who will push pro-crypto policies—like re-electing Ted Cruz because he “gets” Bitcoin.

Are We Headed Towards Biased Regulations?

So what does all this mean? Well, it raises some serious questions about future regulations concerning digital currencies in America.

With such concentrated financial power backing them up, is there any doubt that these PACs could lead us towards some pretty lopsided regulations? Take FIT 21 for example; it proposes different rules based on whether blockchains are decentralized or not—and I can’t help but feel that might be influenced by some hefty lobbying dollars.

The challenge facing lawmakers is twofold: support innovation while also curbing illegal activities associated with said innovations. The Biden administration has already laid out its intentions with an executive order aimed at fostering “responsible financial innovation”, but whether that’s effective remains to be seen—especially when faced with such formidable opposition.

Closing Thoughts

All in all, it’s hard not to see how crypto’s involvement in US politics could leave lasting marks on both democracy and regulatory frameworks as we know them today.

As we continue down this election cycle path paved with shiny new coins (and possibly corruption?), one thing seems certain: without checks on influence or clear guidelines separating industry interests from public welfare—we may just find ourselves lost in an uncharted territory called ‘CryptoLand.’