Crypto companies spent $ 134M in 2024 US elections, raising concerns over influence
Cryptocurrency companies have spent more than $ 134 million in the 2024 US election, which revitalizes concerns about their growing political influence and potential risks to regulatory stability, according to a report by the Center for Political Accountability (CPA).
The growing connection of Crypto companies with US politics is increasing new concerns for regulators, investors and wider financial systems, according to a report released by the Center for Political Accountability (CPA).
Cryptocurrency companies released a combined -with $ 134 million in 2024 US ElectionS on “uncontrollable political spending,” presenting some critical challenges, the March 7 Report Nakasa said.
“While companies that make these contributions may be looking for a desirable regulation environment, these political donations will further erase public confidence and expose companies to legal, reputation, and business risks that cannot be ignored,” the report added.
Cryptocurrency regulation occurred on stage last week following a historic Executive order From US president Donald Trump to create a strategic bitcoin (Btc) Reserve in advance White House Crypto Summit On March 7th.
Source: PoliticalaCountability.net
Fairshake, a political action committee (PAC) supported by major crypto companies including Coinbase, Ripple and Andreessen Horowitz, is one of the biggest contributors, to spend more than $ 40 million to support candidates aligned with pro-crypto policies.
The fairshake and affiliated PACS are active in the major career of Congress, which attempts to shape the law that is desired in digital property.
“While the industry is constantly seeking influence through extensive contributions and fuzzy financial maneuvers, the dangers of unbalanced, regulatory backlash, and distrust of the public are just growing,” the report said.
Donations fairshake. Source: PoliticalaCountability.net
The influx of crypto currency in politics has not been noticed by regulators. In August 2024, Consumer Advocacy Group Public Citizen filed a Complaint Along with the Federal Election Commission (FEC), which allegedly contributed to Coinbase’s corporate contributions to the fairshake and the Congressional Leadership Fund form a violation of federal election law for their status as a federal contractor.
Related: Bitcoin Reserve Backlash Signals unrealistic expectations in the industry
Coinbase has made an additional $ 25 million in the fairshake for the 2026 midterm election cycle.
Coinbase made $ 25 million in fairshake. Source: Coinbase
“The stakes are too high for us to stand on the sides, and that’s why we at Coinbase are proud to help our part,” the company wrote on a blog of October 2024 Post.
Related: Bitcoin risks are deeper collapse if $ 75k support fails amid macro concerns
Crypto political donations may be needed for regulation clarity
Despite the risks highlighted by the report, some regulatory experts see donations as needed for the promotion of more friendly regulations.
“As someone deeply involved in crypto, I see this expenditure as needed for regulation clarity, it is important for stability and growth,” said Anndy Lian, there is a set and expert in the Intergovernmental Blockchain:
“It seems to boost the investor’s confidence by reducing uncertainty, as seen in the pro-crypto candidate who has won the encouragement of sentiment in the market, such as the post-election of Bitcoin.”
However, the risks, including “regulating regulations,” in which the interests of large companies are priority, may present challenges and eradicate the crypto investor’s confidence. However, it is part of the organic growth of the emerging crypto industry, Lian said, added:
“The transparency and decentralization of the crypto community can ease it, ensuring fair regulation. While controversial, I do not know that there is a problem, viewing it as a maturity of the industry, even if the public backlash can reinforce politics if seen as a purchase in favor.”
Debate about the crypto role in politics follows the The down-profile drop of Libra token (Libra)A memecoin sponsored by Argentine president Javier Milei. Project insider allegedly quit $ 107 million worth of liquidity In a pulling rug, which triggered a 94% price collapse within a few hours and wipe $ 4 billion.
More than 100 government fraud complaints have been opened in Argentina since the Libra Memecoin scandal, which describes the risks of a country’s executive branch that promotes “any kind of irregular security,” reports the CPA.
