The US elections are witnessing an unprecedented level of political influence from the cryptocurrency industry, according to industry experts. Cryptocurrency-focused political action committees (PACs), such as Fairshake, have raised approximately $85 million to support candidates who are pro-crypto and to educate lawmakers about industry-friendly regulations. Notably, Fairshake’s $10 million investment played a significant role in the defeat of congresswoman Katie Porter, who has been critical of cryptocurrencies.
Fairshake also provided resources to two affiliated PACs, Defend American Jobs and Protect Progress, which supported Republican and Democratic candidates respectively, resulting in significant victories. Defend American Jobs recently invested nearly $500 in advertising for Mark Messmer, a Republican nominee from Indiana who won the congressional nomination.
The rise of cryptocurrency influence in politics has been acknowledged by Kristin Smith, CEO of the Blockchain Association, who stated, “It’s at a level we haven’t seen in previous election cycles.” This newfound influence has even impacted previously skeptical politicians like Senator Sherrod Brown, who now shows a willingness to consider legislation favorable to cryptocurrencies.
Kyle Bligen, director of financial policy at the House of Progress, noted that even politicians who were traditionally hesitant are now reconsidering their positions to avoid facing campaigns funded by the cryptocurrency industry.
While previous attempts to influence national elections have sometimes failed, the current operation is seen as more sophisticated. Smith added, “Now it’s like, ‘Wow, this is the powerful crypto industry and they’re here to influence Washington and they’re utilizing every tool to do so.'”
Interest in the presidential elections is also high among cryptocurrency owners, with studies indicating a preference for Donald Trump, despite his ambivalent stance towards cryptocurrencies. Trump’s stance and the crypto policies of Vivek Ramaswamy, who is no longer in the race, could potentially influence Trump’s future policies if he is re-elected.
In the Democratic field, concerns and hopes arise with the possibility of Joe Biden’s re-election. While some fear continued regulatory uncertainty under the leadership of Gary Gensler, the president of the SEC, others like Bligen see an opportunity for cryptocurrency-friendly legislation after the election.
The cryptocurrency industry faces significant challenges, including the need for better education and engagement on issues such as privacy and national security. The recent crackdown on services like Tornado Cash highlights the difficulties in finding a balance between privacy and regulatory concerns.
Efforts are also being made at the state level, where pro-cryptocurrency policies can be tested as potential models for federal regulations.
Disclaimer: The views and opinions expressed in this article, including those of any individuals mentioned, are for informational purposes only and do not constitute financial, investment, or other advice. Investing or trading cryptocurrencies carries the risk of financial loss.
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