Crypto industry wields growing influence in US politics with donations climbing over $190 million

Crypto-driven donations are playing a crucial role in toss-up districts as the industry tries to secure political allies.

Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.

Political donations made by the US crypto industry have surged to record highs after surpassing $190 million as the final stretch of the election cycle approaches, CNBC reported on Oct. 20.

This represents a significant increase from previous election cycles, marking nearly a 13-fold jump from the $15 million spent in 2020.

The industry’s growing influence is evident as large sums pour into critical congressional and Senate races, with the goal of shaping future US regulatory policies.

Bipartisan Influence

Data from the Federal Election Commission (FEC) reveals that crypto companies contributed nearly half of all corporate donations this cycle. Over $130 million was funneled into congressional races, including primaries, highlighting the sector’s interest in securing pro-crypto representation.

The pro-crypto super political action committee (PAC) Fairshake has been one of the leading spenders, distributing nearly $29 million in September alone.

Fairshake, known for its advocacy of crypto and blockchain policy, allocated $20 million of its September spending to two affiliated PACs: $15 million to the Defend American Jobs PAC, which supports Republican candidates, and $5 million to Protect Progress, which favors Democrats.

Fairshake directed $8.8 million of its September spending into competitive House races in New York, Nevada, and California. Southern California Republicans David G. Valadao and Michael Garcia, locked in tight races, received $1.3 million and $1 million, respectively.

Donations have slightly favored Democrats in recent months, but financial support has remained notably bipartisan.

In September, Fairshake funneled $6.2 million to House Democrats, compared to $2.3 million for Republicans. Notable pro-crypto Democrats like Rep. Patrick Ryan (D-NY) and Rep. Steven Horsford (D-Nev.) benefited from this influx, receiving $1.9 million and $1.7 million, respectively.

California at the Center

California remains a focal point for the crypto industry due to its high concentration of blockchain firms. The state’s political landscape is pivotal for future regulatory developments, and industry donations reflect this focus.

Crypto market analyst James Delmore told CNBC:

“Fairshake’s donations to candidates in toss-up districts are critical. It’s not just about securing pro-crypto politicians in key House seats, but also maintaining California’s position as a hub for the crypto industry.”

Beyond California, Fairshake’s contributions have reached candidates in other key states, including New York, Nevada, and Illinois.

Meanwhile, Protect Progress directed over $10 million to Democratic Senate candidates in Arizona and Michigan, aiming to boost pro-crypto lawmakers in battleground states.

As the crypto industry continues to grow in political clout, the infusion of substantial donations into key races highlights its long-term strategy to shape the regulatory landscape.