‘Big Crypto’ dominates US election spending and exploits consumers, report finds

Crypto corporations have become the dominant force in federal election spending, spending over $119 million to influence the U.S. election outcome. 

According to a report by the non-profit organization Public Citizen, nearly half of all corporate money contributed to this year’s United States elections came from crypto backers, totaling $248 million.

This makes the crypto industry the largest corporate political spender in 2024, with Koch Industries, primarily known for oil and gas, a far second, contributing $28.25 million to support Republican candidates and causes.

According to the report, the massive investment has primarily been funneled into the nonpartisan super PAC Fairshake, which is dedicated to electing pro-crypto candidates and defeating those skeptical of the sector.

One of the report’s general concerns with the spending was that crypto-influenced lawmakers are undermining consumer protections and financial system safeguards.

“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.”

Public Citizen report

Unprecedented spending

Over the past three election cycles, crypto corporations have spent $129 million, accounting for 15% of all known corporate contributions since the Supreme Court’s 2010 Citizens United ruling, which allowed unlimited corporate contributions to super PACs. 

During the cycles, 92% of this spending occurred in 2024 alone.

Crypto’s political spending

The report highlighted how spending appears to be paying off in the United States’ political landscape.

According to the report, crypto companies pledged support in the Montana senate race without specifying the candidate. At the same time, Senator Jon Tester voted in favor of pro-crypto legislation despite previous skepticism. 

The House Republicans’ bill, known as the Financial Innovation and Technology for the 21st Century Act, or FIT21, was approved by 71 Democratic House members, defying the Biden administration. If enacted, this legislation is expected to legitimize the crypto industry.

Additionally, politicians such as Donald Trump, J.D. Vance, and members of Kamala Harris’ team have made pro-crypto gestures, indicating a growing impact of the crypto sector on political stances and decision-making.

Fairshake 

Fairshake PAC, the primary beneficiary of this influx of crypto cash, has raised $202.9 million to date, with more than half of its funding—$107.9 million—coming directly from corporations like Coinbase and Ripple (XRP). 

The remainder of Fairshake’s funds have come from billionaire crypto executives and venture capitalists, including the founders of Andreessen Horowitz and the Winklevoss twins.

Warnings as crypto influences the election

The surge in corporate spending is seen as an aggressive move by the crypto industry to push its regulatory agenda to the forefront of the 2024 elections. However, the strategy is not without controversy. 

According to the report, critics argue that the overwhelming influence of crypto money in politics could undermine the public interest in favor of private, profit-driven goals. 

“We’ve already had enough of elected officials looking the other way because influential billionaires and Big Businesses told them to,” the report read. “Regulators and lawmakers should be free to carry out their public interest missions without fear of political attacks from corporate interests.”

The report warned that this trend could increase corporate influence and weaken established electoral norms, further consolidating the power of wealthy interests in the political process.