The latest developments have been promising for the crypto industry, with Bitcoin trading for around $63,300 at the time of writing. Stakeholders are investing millions of dollars during Super Tuesday primary contests in Texas, Alabama, and California in pro-crypto candidates and against those in favor of stricter regulations, Reuters wrote.
How the candidates for US president will perform on Tuesday, when multiple races nationwide go down to two candidates, will show the extent of increasingly richer crypto executives’ influence in the November elections.
At least $13M spent in primaries
Independent fundraising groups such as Defend American Jobs, Fairshake, and Protect Progress, supported by Coinbase and the Winklevoss twins, have spent at least $13 million in Tuesday’s primary races, Reuters data reveals. The source of the data is OpenSecrets, a research group that tracks fundraising in US politics and its effect on policy and elections.
According to a spokesperson for Fairshake, this may be just the beginning. The group believes the crypto community will have an impact and influence in races behind candidates who align with their vision and their agenda.
According to data from the Federal Election Commission, the three groups have raised nearly $102 million since January 2023.
Bitcoin hit a new high
Bitcoin hit a new high, propelling the entire cryptocurrency industry. It has seen a revival after a prolonged bear market caused by the collapse of a few key players in 2022.
The crypto industry has contributed about $59.2 million toward the 2024 election cycle so far, compared to $1.6 million in the 2020 cycle and $26.8 million in the 2022 midterm cycle, OpenSecrets data showed.
The targets
Fairshake has spent over $10 million to try to convince the electorate not to support Katie Porter, a California progressive Democrat running for Senate. Their efforts include a statewide TV and digital media buy. She joined notoriously anti-crypto US Senator Elizabeth Warren in 2022 in asking for information from Texas’ electric grid operator on crypto mining operations in the state and how the power used by the industry affects the energy grid and climate change.
Protect Progress has spent about $1.7 million to support Democrat candidate Shomari Figures, who is also a former deputy chief of staff to US Attorney General Merrick Garland. He is a candidate in Alabama. The highly contested race is expected to be won by a Democrat.
If he is elected, Figures promised to “embrace the new landscape around digital assets, like Cryptocurrency, to stimulate innovation and technological advancement,” according to his website.
In Texas, Protect Progress has invested almost $1 million to back Representative Julie Johnson, a Democrat running in the state’s 32nd congressional district race.
Defend American Jobs has spent more than $1 million to support Representatives Tim Moore and John Bradford III, Republicans in North Carolina. The former is currently the speaker of the state’s House.
Democrats are expected to gain a majority in the House of Representatives in the 2024 elections, albeit a slim one, which means individual Congress members could play key roles in passing laws.
Coinbase’s role in the elections
According to Coinbase US policy head Kara Calvert, all the races have candidates who show an openness to thinking and learning more about digital assets. What’s more, they are trying to convince Congress and policymakers to take action.
Coinbase also backs the Stand With Crypto Alliance, a non-profit group with 315,000 members that makes efforts to organize voters who hold crypto and change public sentiment.
Are we doomed to repeat the past?
According to prosecutors, FTX founder Sam Bankman-Fried stole millions from customers and used part of the money to make donations to US political campaigns, allegedly in the range of $100 million. According to federal disclosures, he donated roughly $40 million to primarily Democratic campaigns and groups.
Bankman-Fried is also accused of instructing two FTX executives to evade contribution limits by making donations to both parties. They donated around $9.7 million to Democrats and more than $24 million to Republicans in 2022. Some of the recipients returned the money.
While we are not doomed to repeat the past, we should use the experience of FTX/Alameda to take precautions, according to law professor Ciara Torres-Spelliscy, quoted by Reuters. She said stakeholders are trying to claw back FTX/Alameda funds that went into politics in two ways. Federal prosecutors want to recover the funds as they believe their source was illegal. FTX bankruptcy officers are also trying to recover the money.
