June 5, 2024
Cryptocurrency Titans Amass Massive $78 Million Fund for 2024
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Cryptocurrency Titans Amass Massive $78 Million Fund for 2024

Top figures in the cryptocurrency industry have contributed a substantial $78 million to super PACs with the aim of supporting and expanding the presence of lawmakers favorable to crypto interests on Capitol Hill, Axios has discovered.

Significance: This remarkable amount, amassed within just three months and with nearly a year left until election day, positions the cryptocurrency sector to rival more established industries in terms of political contributions.

The super PAC at the forefront of this effort, Fairshake, in conjunction with associated PACs Protect Progress and Defend American Jobs, will officially report raising $78 million in the final quarter of 2023, as revealed in a press release initially shared with Axios.

The funding originates from a coalition of cryptocurrency firms, executives, and investors, including major names like Coinbase, Andreessen Horowitz, and the Winklevoss twins. This financial infusion is also a concerted attempt to rehabilitate the image of the crypto industry in campaign fundraising circles following the downfall of FTX founder and influential political donor Sam Bankman-Fried.

Developments: The donations are slated to support congressional candidates from both political parties who align with principles such as being pro-innovation, advocating responsible regulation, supporting cryptocurrency, and endorsing blockchain technology. An individual involved in the initiative emphasized that it’s not about being anti-regulation but, instead, advocating for responsible regulation to foster the industry in the United States.

Politicians who have received backing from Fairshake thus far include House Financial Services Committee Chair Patrick McHenry (R-N.C.) and Majority Whip Tom Emmer (R-Minn.), as reported by ProPublica. Other incumbents benefiting from the PAC’s support include Reps. Don Davis (D-N.C.), Ritchie Torres (D-N.Y.), Young Kim (R-Calif.), Josh Gottheimer (D-N.J.), Zach Nunn (R-Iowa.), Greg Meeks (D-N.Y.), and Steven Horsford (D-Nev.).

Context: This financial injection comes at a time when policymakers are increasingly serious about establishing clear regulations for the cryptocurrency industry. In July, the House Financial Services Committee advanced several regulatory bills related to crypto to the floor for the first time, according to Axios’ Crystal Kim.

Fairshake’s release emphasized the need for a transparent regulatory and legal framework for the success of the blockchain economy. The crypto community is actively advancing initiatives to promote stability, technological innovation, and the growth of the blockchain economy in the U.S., positioning the country as a hub for blockchain technology development and adoption.

Broader Context: Axios Crypto author Brady Dale notes that cryptocurrency has become a partisan issue, citing the Biden administration’s hesitancy and the Republican Party’s warmth toward the crypto industry.

The efforts of Securities and Exchange Commission (SEC) Chair Gary Gensler to regulate crypto, perceived as adversarial by many in the industry, have created a challenge for some congressional Democrats, costing them around $100 million, according to a source close to Fairshake. The group aims to ensure these Democratic candidates now have to choose between supporting something owned by more than 50 million Americans or aligning with Gensler.

Key Takeaway: In the words of Coinbase CEO Brian Armstrong, a key supporter of the PAC, the comparison with the oil and gas lobby or the banking lobby highlights the substantial impact of money in influencing political decisions. “Money moves the needle,” he emphasized, acknowledging the functioning of the political system, whether for better or worse.

Image by PublicDomainPictures from Pixabay

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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