U.S. Election Spending Dominated by Crypto, Raising Concerns Over Consumer Protection

The crypto industry has emerged as the dominant force in federal election spending, pouring over $119 million into the 2024 U.S. elections. According to a report by Public Citizen, a non-profit organization, nearly half of all corporate contributions in this election cycle have come from crypto-related entities, totaling $248 million. This unprecedented spending makes the crypto sector the largest corporate political contributor this year, surpassing even Koch Industries, which donated $28.25 million primarily to support Republican causes.

Concerns Over Crypto’s Growing Influence

Most of the crypto industry’s contributions have been funneled through the nonpartisan super PAC, Fairshake. This group focuses on electing pro-crypto candidates and opposing those who are critical of the sector. However, the substantial financial influence wielded by the crypto industry has raised alarms about its potential impact on consumer protections and financial regulations.

Public Citizen’s report expressed concern that “crypto-influenced lawmakers bending over backwards to benefit Big Crypto means weaker protections preventing individual consumers from being defrauded by reckless crypto scams – and softened regulations protecting our financial system from destructive innovations that exploit consumers while enriching insiders.”

Crypto corporations have dramatically increased their political spending over the past three election cycles, investing $129 million, which accounts for 15% of all known corporate contributions since the 2010 Citizens United ruling. Incredibly, 92% of this spending has occurred in 2024 alone, highlighting the sector’s aggressive push to influence the political landscape.

This spending seems to be yielding results. For instance, crypto companies have backed the Montana senate race, where Senator Jon Tester, previously a skeptic, voted in favor of pro-crypto legislation. Additionally, the House Republicans’ Financial Innovation and Technology for the 21st Century Act (FIT21) has gained unexpected support from 71 Democratic members, despite opposition from the Biden administration. This legislation could potentially legitimize the crypto industry if enacted.

Moreover, political figures such as Donald Trump, J.D. Vance, and members of Kamala Harris’ team have made pro-crypto gestures, signaling the sector’s growing sway over political stances and decision-making.