Fairshake has invested more than $200 million in crypto-friendly candidates.
Donors like the Winklevoss twins support Trump for his pro-Bitcoin stance.
The Bitcoin (BTC) and other cryptocurrency industry is influencing the US elections so much this year that it is transforming the electoral landscape. This by stepping firmly into strategies to shape the political future towards greater acceptance of digital assets in all spheres of government.
Fairshake, the PAC or Political Action Committee that represents the interests of cryptocurrency advocates, such as Coinbase Global Inc., Ripple Labs, and Andreessen Horowitzhas invested millions of dollars in various electoral races putting pressure on candidates from both parties (Republican and Democrat) to adopt more favorable positions towards cryptocurrencies.
A PAC is an organized group that raises and spends money to influence elections, but is not linked to a political party or candidate, but can make donations to the candidate they prefer. These groups may be managed by corporations, unions, or trade associations and are financially independent, raising funds through contributions.
Cryptocurrency groups alone have spent more than $130 million on congressional races ahead of this year’s elections, including primaries, according to data from the Federal Election Commission. recently published.
It is noteworthy that on November 5, 2024, The United States will not only elect its next presidentwill also decide the new composition of Congress: the entire House and a third of the Senate.
This year Fairshake has emerged as a bipartisan force with two affiliated PACs. This given that operates with Defend American Jobs, which supports Republicans, and Protect Progressdedicated to supporting Democrats. All as part of an effort to boost candidates favorable to the pro-digital asset agenda.
A publication of Public Citizena non-profit group of American analysts that acts in defense of consumer rights, points out that this year the cryptocurrency industry has allocated millions of dollars (currently about 200 million dollars), mainly to push pro-cryptocurrency candidates for the US Senate, whose mission is also to weaken support for skeptics.
Fairshake advertisements rarely directly mention cryptocurrencies; Instead, they focus on the personal and political characteristics of the candidates, evidencing an attack tactic that seeks to weaken those who oppose the industry. For example, the PAC spent $10 million to discredit Katie Porter, a candidate who had voted against pro-cryptocurrency policies.
So, in a remarkable twist of history, Fairshake has played a vital role in the defeats of several congressmen who opposed initiatives that the industry considers relevant. And in this way, it is reaffirming its approach of spending to destabilize its adversaries.
Who are those who donate cryptocurrencies to Donald Trump?
Now, in an election where cryptocurrencies are playing a crucial role, the Federal Election Commission (FEC) is mandating that PACs identify donors who contribute $200 or more. This means that the electoral organization does keep strict control of its large donors. This according to the data from OpenSecret, a government research and transparency group that tracks money in politics and its effect on US elections.
However, the FEC has not created a different label or category to track cryptocurrency contributions, making them nearly impossible to identify. Michael J. Malbin, director of the Campaign Finance Institute, a nonpartisan think tank, said he is not aware of any organization that tracks cryptocurrency campaign contributions. This lack of data makes it difficult to know which industry players have donated crypto assets.
Among those who know each other are the Winklevoss twins, Cameron and Tyler, founders of the Gemini cryptocurrency exchange, who donated $2 million in bitcoin to Donald Trump’s presidential campaign.
The twins they said who made the decision to support Donald Trump due to the anti-cryptocurrency stance of the Joe Biden administration and accused that administration of using government agencies to harass and litigate against digital asset entities, describing these actions as politically motivated and detrimental to innovation and economy.
There’s also Kraken co-founder Jesse Powell in June, donated 1 million dollarsmainly in ether (ETH), to Donald Trump.
“I am excited to join other leaders in our community to unite behind the only pro-crypto major party candidate in the 2024 presidential election so that the United States can continue to be a leader in cryptocurrency technology.”
Jesse Powell, co-founder of the Kraken exchange.
Among the large wave of support for the Republican is Ark Invest CEO Cathie Wood. He was then joined by Justin Sun, Robert Kiyosaki, BitGo CEO Mike Belshe, and Messari CEO Ryan Selkis.
Also, the founder of Cardano, Charles Hoskinson, spoke out in favor of the Republican. And it recently had the support of one of the Bitcoin specialists Charlie Shrem.
On the other hand, Marc Andreessen and Ben Horowitz, the founders of the venture capital firm Andreessen Horowitz, They donated $5 million to the super PAC that supports Trump. Andreessen also donated An additional $844,600 (the federal limit) to the Trump campaign and the Republican Party, as reported by Bloomberg,
Elon Musk, a supporter of cryptocurrencies, has donated almost $120 million to the Super PAC in support of Donald Trump and has become the second largest donor iindividual support for Trump in this electoral cycle. However, Musk’s contribution has been made through America PAC, which has been accused of spreading disinformation on social networks.
Support in cryptocurrencies reaches Kamala Harris, despite her cautious stance
The cryptocurrency industry’s support for Kamala Harris, at least as far as is known, has been as cautious as the candidate’s stance toward digital assets. However, Chris Larsen, co-founder and president of Ripple, has led this endorsement, pledging nearly $2 million to his campaign through a PAC.
Additionally, Larsen donated $10 million in XRP tokens to Harris campaign. On that occasion he noted his belief that Harris “will ensure that American technology dominates the world.
Earlier, in an open letter, leaders including 21st Century Fox’s James Murdoch and Box’s Aaron Levie noted that “the best way to support the continued strength, security, and reliability of our democracy and economy” is by electing Harris as president. .
For his part, Tim Draper, founding partner of the influential firm Draper Fisher Jurvetson, opted for a bipartisan approach, allocating funds in a similar way to both Harris’ campaign and that of her adversary Donald Trump, emphasizing his optimism about the future of both candidates in relation to the cryptocurrency industry.
JP Thieriot, CEO of cryptocurrency platform Uphold, was among Kamala Harris’ early supporters, along with former Ripple executive Gene Sperling.
In September, two heavyweights in the cryptocurrency scene, Anthony Scaramucci, founder of SkyBridge Capital, and Ripple co-founder Chris Larsen, sided with Harris.
The celebrity factor didn’t stop in October either. Unlike his co-founder, Ben Horowitz (Andreessen Horowitz) declared his support for the Democrat. Later that month, the cryptoasset journalist and podcast host joined Laura Shin, like renowned investor Mark Cuban. The latter even stated in an interview that he would be available for the position of head of the SEC under a possible Harris administration.
Although financial support reflects a tangible interest in securing a voice in future administration, the lack of concrete actions by Harris regarding regulation and the development of policies for digital assets, leaves many industry players in uncertainty.
Therefore, the next few days will be crucial to observe whether Kamala Harris ultimately decides to make clear and strategic commitments to the cryptocurrency industry and investor confidence.
Cryptocurrencies and politics: The new frontier of corporate donations
The growing influence of cryptocurrency donations by business leaders reflects a strategy parallel to that followed by prominent figures in various industries.
Like their counterparts in traditional sectors, these leaders seek to secure their political position and candidates who could facilitate a more conducive environment for their interests in the medium term. Thus, financial support for candidates close to their prospects not only translates into an investment in the future of cryptocurrenciesbut also resembles the dynamics of pressure that other interest groups exert in the political sphere.
In this sense, cryptocurrency donations become a key tool in shaping discourse and legislation related to digital assets, further consolidating their presence in the American political spectrum.
