Crypto Industry Opens its Digital Wallets for 2024 Election: Winklevoss Twins Top the Donor List
The 2024 presidential election is proving to be a watershed moment for the cryptocurrency industry, as it unleashes its financial power and influence into the political arena. From the Winklevoss twins to Ripple Labs executives, crypto leaders are making hefty donations to candidates and political action committees (PACs) seeking favorable regulations and policies in this burgeoning sector. With less than two months until the general election, political donations from or in support of the crypto industry have reached an unprecedented $190 million, a significant increase from previous election cycles.
Key Takeaways:
- Crypto industry political spending nearly doubles mid-term levels: Donations from or in support of the crypto industry have reached an estimated $190 million for the 2024 election, nearly doubling the $98 million spent during the 2022 midterms.
- Winklevoss Twins: The Winklevoss twins, creators of crypto exchange Gemini Trust Co., are the top individual crypto donors this cycle, collectively contributing over $10.1 million, split almost evenly between them. Their contributions span the political spectrum, with significant sums going to pro-Trump PACs and the bipartisan Fairshake PAC which advocates specifically for crypto regulations.
- Ripple Labs: Co-founder Chris Larsen and CEO Brad Garlinghouse have collectively given over $3 million to candidate committees and Super PACs, with a clear preference for Democratic candidates. The company’s chief legal officer, Stuart Alderoty, has also contributed $300,000 to the Trump 47 Committee.
- Coinbase and Kraken: Executives from these major crypto exchanges are also making significant contributions. Coinbase CEO Brian Armstrong has donated over $1.3 million to various PACs as well as individual candidates on both sides of the aisle. Kraken co-founder and Chairman Jesse Powell has donated over $1 million directly to the Trump campaign.
- Shifting from 2020: This year’s donor list differs significantly from 2020, where donations from the now-bankrupt FTX and its founder Sam Bankman-Fried dominated. While the crypto industry’s donations initially favored Democrats, the 2024 election is showing a more balanced approach with a significant portion of the money going to Republican candidates and PACs.
- Pro-Crypto Advocacy: The push to elect pro-crypto candidates extends beyond financial contributions, The Stand With Crypto Alliance, launched by Coinbase last year, is currently on a cross-country bus tour through battleground states to promote voter registration, highlighting the industry’s growing activism.
A Battle for Crypto’s Future
The dramatic rise of crypto political spending signifies the sector’s increasing desire to shape its regulatory landscape. The crypto industry faces a multitude of challenges, including regulatory uncertainty, security concerns, and increasing scrutiny from the Securities and Exchange Commission (SEC). Crypto advocates hope that backing sympathetic candidates will help ease these obstacles and lead to a more favorable regulatory environment for their burgeoning sector.
The SEC’s Role
A key focal point of this political maneuvering has been the SEC’s crackdown on the crypto industry under its Chair, Gary Gensler. The SEC has targeted prominent players like Coinbase and Kraken with civil charges related to their operations, sparking considerable anxiety in the industry. This has fueled a desire for change among many crypto executives, leading to increased donations to candidates promised to challenge the current SEC leadership.
Trump & The Crypto Industry
Donald Trump, a vocal supporter of Bitcoin, has gone so far as to vow to fire Gensler if he is re-elected. Trump’s campaign has also received significant donations from industry leaders. His rhetoric, coupled with the SEC’s ongoing actions, is likely influencing the industry’s growing support for Republican candidates.
The Fight for Control
The current landscape of crypto political spending underscores the industry’s increasing political engagement. This trend is likely to continue, particularly as the SEC’s regulatory approach becomes more stringent and the industry seeks allies within the political establishment.
A Pivotal Election
The 2024 election will likely play a significant role in ultimately determining the regulatory landscape for crypto. The outcome will not only impact the future of individual companies and projects but also have a profound effect on the overall adoption and growth of the crypto sector.
Further Reading
This article is just the beginning of the story. For a more detailed account of the crypto industry’s involvement in the 2024 election, we encourage further exploration and research. Here are some helpful resources:
- FEC Data: Federal Election Commission (FEC) data: Provides detailed records of all campaign contributions and spending.
- Blockchain Analytics Platforms: Breadcrumbs and other blockchain analytics platforms offer analysis and insights into crypto-related political spending.
- Industry Publications: Crypto news publications like CoinDesk, Cointelegraph, and The Block provide in-depth coverage of the sector’s political activities.
The crypto industry has clearly arrived on the political stage, making its presence known through significant financial contributions and heightened activism. The 2024 election marks a pivotal moment, potentially shaping the future of this evolving sector for years to come.
