The Secret Influence of Crypto Assets in the US Elections

On November 6, 2024, the United States experienced a dramatically charged presidential election. Trump, known as a "Crypto Assets supporter," successfully won the election, which may signal that the Crypto Assets industry will officially enter the decision-making circle of the White House. Meanwhile, the price of Bitcoin broke through the $75,000 mark, setting a new historical high. Behind this election, some hidden interest groups and beneficiaries gradually came to light.

Crypto Assets Lobbying: Huge Investments from Congress Members to the President

On May 22 this year, the U.S. House of Representatives passed the "21st Century Financial Innovation and Technology Act" with an overwhelming majority of 279 votes in favor and 136 against. This Republican-led bill aims to amend existing securities and commodities regulatory laws to create a regulatory framework for digital assets, promoting the development of the Crypto Assets industry.

The passage of this bill is inseparable from the enormous campaign funds invested by the encryption community to lawmakers. According to statistics from political fundraising data tracking platforms, political action committees supporting Crypto Assets have invested over $133 million in elections, influencing 51 campaigns, with the main purpose of supporting candidates who promise not to impose strict regulations on Crypto Assets. The three most active political action committees are Fairshake, Protect Progress, and Defend American Jobs.

The rise of these super political action committees stems from a 2010 Supreme Court ruling that allowed corporations and unions to make unlimited expenditures in political activities. A subsequent ruling further established the legal status of "super political action committees," enabling them to receive and spend unlimited donations as long as they do not coordinate directly with candidates or parties.

For example, Fairshake invested over $10 million to support a California congressman’s campaign for the Senate. Although ultimately unsuccessful, they have directed their energy and funds toward supporting bipartisan candidates. Defend American Jobs invested over $40 million in an election in Ohio to support a Republican candidate running for the Senate. Protect Progress invested more than $10 million to support a congressman’s campaign.

The CEO of a well-known crypto assets exchange platform recently stated in an interview: "Regardless of the outcome of this election, this will be the most supportive Congress for crypto assets in our history."

Political Donation Trends of Crypto Institutions

By analyzing political donation data, we can glimpse the sources of funding behind the political stage. Trump's political action committee raised a total of $327.47 million in 2024. Among the million-dollar donations, a company founded by the founder of a well-known digital asset exchange contributed approximately $2.366 million, making it the second-largest donor.

Another action committee raised a total of $68.46 million this year, which includes a $5 million donation from the founder of a well-known venture capital firm. It is worth noting that the support from the encryption industry is not limited to any one political party; many contributors do not have clear party affiliations, and their goal is to elect politicians who are friendly to Crypto Assets.

At the institutional level, most donations come from three major Crypto Assets trading platforms, totaling approximately $108 million. A well-known venture capital firm also invested $45.2 million.

A recent report shows that nearly half of the corporate funds flowing into the election come from the Crypto Assets industry. This funding is primarily directed towards candidates who hold a friendly attitude towards Crypto Assets.

Future Outlook: Who Will Benefit?

As the regulatory framework for Crypto Assets in the United States gradually improves, groups that voice their opinions in the ears of politicians will play a key role. Leading exchanges, venture capital firms, and foundations have already made early arrangements.

From the donor lists of the three main super political action committees, we can see some familiar faces, including well-known venture capital firms, trading platforms, and blockchain projects. Notably, one investment company, although its donation amount is not large, appears on the lists of all three committees, which may suggest its unique strategic positioning.

The Crypto Assets industry, holding the ideal of decentralization, will continue to grapple with regulation. The future development path is still full of challenges, but the result of this election undoubtedly brings new opportunities and possibilities for the industry.