Crypto Firms Earmarked Over $134 Million for U.S. Elections in 2024: Report

Crypto Firms Earmarked Over $134 Million for U.S. Elections in 2024: Report

Cryptocurrency companies have spent more than $134 million on the 2024 U.S. elections, according to a March 7 report by the Center for Political Accountability (CPA), substantially increasing their political involvement to influence crypto-friendly regulations and raising concerns among regulators, policymakers, and investors about potential conflicts of interest.

Fairshake PAC Leads Crypto Political Influence

The CPA report highlights the increasing financial ties between crypto firms and U.S. elections, sparking unease among regulators, investors, and policymakers.

https://twitter.com/MetaEraHK/status/1899054181631270986

A major portion of this funding has been funneled through Fairshake, a political action committee (PAC) backed by major industry players such as Coinbase, Ripple, and Andreessen Horowitz.

Fairshake has reportedly spent more than $40 million to support candidates aligned with pro-crypto policies, influencing legislative outcomes in competitive congressional races.

Its affiliated PACs have also directed funds toward candidates favorable to digital assets.

Beyond corporate-backed donations, high-profile tech figures have also contributed substantially.

The report points out political donations from industry leaders, including Elon Musk, Reid Hoffman, and Chris Larsen.

Ripple co-founder Chris Larsen previously contributed $1 million in XRP to Vice President Kamala Harris’s presidential campaign.

Despite these high-profile individual donations, most funds originate from corporate treasury contributions and private firms like Andreessen Horowitz.

Additionally, a major portion of the funding flows through obscure 501(c)(4) organizations, such as the Cedar Innovation Foundation, making it difficult to trace the full extent of crypto’s electoral spending.

Coinbase’s $25M Contribution, Concerns Over Insider Trading, and Political Influence

Coinbase, one of Fairshake’s largest backers, recently announced a $25 million donation supporting pro-crypto candidates in the 2026 U.S. midterm elections, reinforcing its role in influencing crypto-related political outcomes.

However, the report also highlights regulatory concerns surrounding Coinbase.

In June 2023, the U.S. Securities and Exchange Commission (SEC) charged Coinbase with operating as an unregistered securities exchange.

The following month, the SEC ordered Coinbase to cease trading certain non-crypto assets, a directive with which the company refused to comply.

Coinbase CEO Brian Armstrong has vowed to fight the matter in court, arguing that the regulatory agency lacks clarity in its enforcement actions.

The CPA report also raises concerns about potential insider trading among elected officials due to the large influx of crypto donations.

With many of the largest contributions originating from industry founders and investors, there is increasing speculation that regulatory decisions may be swayed in favor of major crypto players.

Additionally, figures within the Trump administration could personally benefit from the crypto sector’s growing political engagement.

David Sacks, a South African entrepreneur and investor known as President Trump’s “crypto czar,” has reportedly divested his personal holdings following Trump’s executive order to create a “strategic crypto reserve.”

https://twitter.com/pbartstephens/status/1897008176467468349

If the U.S. government were to amass large amounts of digital assets, Sacks and other insiders could stand to profit, raising concerns over potential conflicts of interest.

The Regulatory Debate: Innovation vs. Capture

Despite concerns about regulatory capture and undue influence, some industry experts argue that crypto’s political involvement is essential for fostering innovation-friendly regulations.

“As someone deeply involved in crypto, I see this spending as necessary for regulatory clarity, crucial for stability and growth,” said Anndy Lian, an intergovernmental blockchain advisor and author.

https://twitter.com/anndylian/status/1898987109865623765

While some view these contributions as a means to secure fairer regulations, others warn that prioritizing corporate interests over investor protection could undermine trust in the industry.

As crypto industry spending on U.S. elections reaches unprecedented levels, regulators and voters face a critical question: Can policymakers objectively navigate between fostering innovation and preventing regulatory capture?

The substantial political investments by crypto firms may deliver clearer industry regulations, but they also challenge the integrity of legislative processes.

Ultimately, the balance struck in coming elections will determine whether the cryptocurrency sector is viewed as a legitimate economic force or as a cautionary example of corporate influence reshaping democracy.

Frequently Asked Questions (FAQs)

What broader effects might crypto political spending have on democratic decision-making?

Crypto funding in politics blurs the line between business interests and public welfare, leaving citizens feeling overlooked. This influence risks shifting policy toward entrenched power, straining democratic balance.

How might increased crypto spending affect investor confidence in the market?

A surge in crypto political contributions can unsettle investors, fueling doubts over fair oversight. This uncertainty might trigger market volatility and caution as regulatory signals become less clear.

What measures could help mitigate excessive crypto influence in elections?

A3: Stricter disclosure rules and enhanced oversight can curb excessive crypto influence in elections. Clearer regulations would promote transparency, leveling the playing field for political participation.

 

Source: https://cryptonews.com/news/crypto-firms-134m-us-elections-2024/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

Crypto firms spent $134M on 2024 US elections, raising influence concerns

Crypto firms spent $134M on 2024 US elections, raising influence concerns

Cryptocurrency companies spent more than $134 million on the 2024 US elections, fueling 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 firms with US politics is raising newfound concerns for regulators, investors and the wider financial system, according to a report released by the Center for Political Accountability (CPA).

Cryptocurrency firms shelled out a cumulative $134 million on the 2024 US elections in “unchecked political spending,” which presents some critical challenges, the March 7 report stated.

“While the companies making these contributions may be seeking a favorable regulatory environment, these political donations further erode public trust and expose companies to legal, reputational, and business risks that cannot be ignored,” the report added.

Cryptocurrency regulation has taken center stage over the past week following a historic executive order from US President Donald Trump to create a Strategic Bitcoin Reserve ahead of the first White House Crypto Summit on March 7.

Fairshake, a political action committee (PAC) backed by major crypto firms including Coinbase, Ripple and Andreessen Horowitz, was one of the largest contributors, spending more than $40 million to support candidates aligned with pro-crypto policies.

Fairshake and affiliated PACs were active in key congressional races, attempting to shape legislation favorable to digital assets.

“As the industry continues to seek influence through vast contributions and opaque financial maneuvers, the risks of instability, regulatory backlash, and public distrust only grow,” the report said.

The influx of crypto money into politics did not go unnoticed by regulators. In August 2024, the consumer advocacy group Public Citizen filed a complaint with the Federal Election Commission (FEC), alleging that Coinbase’s corporate contributions to Fairshake and the Congressional Leadership Fund constituted a violation of federal election law due to their status as a federal contractor.

Coinbase has committed an additional $25 million to Fairshake for the 2026 midterm election cycle.

Coinbase commits $25 million to Fairshake. Source: Coinbase

“The stakes are too high for us to stand on the sidelines, and that’s why we at Coinbase are proud to help do our part,” the company wrote in an October 2024 blog post.

Crypto’s political donations may be necessary for regulatory clarity

Despite the risks highlighted by the report, some regulatory experts see the donations as necessary for advancing more innovation-friendly regulations.

“As someone deeply involved in crypto, I see this spending as necessary for regulatory clarity, crucial for stability and growth,” according to Anndy Lian, author and intergovernmental blockchain expert:

“It seems likely to boost investor confidence by reducing uncertainty, as seen in pro-crypto candidate wins boosting market sentiment, like bitcoin’s post-election high.”

Still, risks, including “regulatory capture,” where the interests of large firms take priority, may present challenges and erode crypto investor trust. Still, this is part of the organic growth of the emerging crypto industry, Lian said, adding:

“The crypto community’s transparency and decentralization might mitigate this, ensuring fair regulations. While controversial, I don’t find it problematic, viewing it as the industry’s maturation, though public backlash could destabilize politics if seen as buying favor.”

The debate over crypto’s role in politics follows the high-profile collapse of the Libra (LIBRA) token, a memecoin endorsed by Argentine President Javier Milei. The project’s insiders allegedly siphoned over $107 million worth of liquidity in a rug pull, triggering a 94% price collapse within hours and wiping out $4 billion.

Over 100 governmental fraud complaints have been opened in Argentina since the Libra memecoin’s scandal, illustrating the risks of a country’s executive branch promoting “any kind of unregulated security,” the CPA’s report states.

 

Source: https://cointelegraph.com/news/crypto-firms-134m-election-spending-regulatory-concerns

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j

Thai Police Raid Five Crypto Firms, Arrest 11 in Crackdown

Thai Police Raid Five Crypto Firms, Arrest 11 in Crackdown

Thai police have raided the offices of five unlicensed cryptocurrency firms, arresting 11 employees as part of a wider crackdown on illicit crypto-related activities within Thailand.

Officers from the Economic Crime Suppression Division (ECD) had received warrants to search the premises of five companies operating in the provinces of Nakhon Pathom, Samut Sakhon and Bangkok.

ECD commander Thatphum Jaruprat said that the 11 arrested individuals included a mix of executives and less senior employees, with police also seizing six computers and other evidence.

An investigation by the ECD had determined that the arrested individuals had been illegally operating e-money firms with a combined annual turnover of approximately one billion baht, or $29.3 million.

The raided firms had allegedly acted as intermediaries for local investors wishing to buy investment products sold overseas, requiring customers to transfer money into e-wallets in order to complete the cross-border purchases.

Thailand strictly regulates forex-based e-money businesses, with its 2017 Payment System Act requiring all such enterprises to register and secure licensing.

Yet according to the ECD, the firms’ failure to register created a money laundering risk, while it also damaged the economy by enabling capital flight.

The police have charged the 11 suspects with providing unlicensed electronic money services, and it’s not the first time this year that authorities have cracked down on illegal crypto activity.

Thailand’s crypto crackdown

January saw Thailand’s Cyber Crime Investigation Bureau propose a ban on Polymarket, arguing that the crypto-based prediction marketplace creates “economic and social risks.”

Last month, Thai and Chinese police froze cryptocurrencies worth around $2.5 million after arresting two Chinese individuals later charged with fraud and human trafficking.

And only today, Binance TH reported that Thailand has seen one of the biggest increases worldwide in investment complaints and damage, with the exchange receiving over 1,000 data requests from police over the past three years.

Such actions may invite the suspicion that Thailand is cracking down on crypto, yet Singapore-based intergovernmental blockchain advisor Anndy Lian argues that Thai authorities are focused mostly on bad actors.

“You’ve got the Cyber Crime Investigation Bureau (CCIB) working with folks like Binance to bust pig butchering scams—those nasty romance-investment hybrids that have ripped off millions,” he told Decrypt.

Lian noted that one particular operation, named Trust No One, resulted in numerous high-profile arrests and the seizure of substantial sums, while subsequent operation The Purge did something similar last year.

“Then there’s the raids on illegal mining ops in places like Chachoengsao and Surat Thani, where they caught people stealing electricity to power their rigs,” Lian added. “That’s another sign they’re keeping an eye on shady crypto activities.”

Lian reiterated that Thai police are zeroing in on fraudsters, extortionists and thieves much more than the crypto space more generally, although it also has a zero-tolerance policy for platforms that do not register with the Thai Securities and Exchange Commission.

“The SEC’s been pushing to block unlicensed exchanges too, like they did with Bybit and others last year, but that’s more about regulating the space than shutting it down,” he explained.

Thailand and crypto

But in general, the cryptocurrency industry in Thailand is growing healthily: the Southeast Asian nation ranked 16th in Chainalysis’ 2024 Global Crypto Adoption Index, while it saw just over $50 billion in cryptocurrency value received between July 2023 and July 2024.

Thailand’s SEC has also been busy updating its rules surrounding cryptocurrency investment for mutual and private funds, in a bid to attract more legitimate investment in the space.

“Plus, with the SEC now eyeballing spot Bitcoin ETFs and stablecoins, it seems like they’re trying to figure out how to manage it, not kill it,” says Lian, referring to the SEC’s January announcement that it may begin permitting local Bitcoin exchange-traded funds.

Such moves mean that Thailand sits somewhere in the middle of Southeast Asian jurisdictions when it comes to crypto regulations, not quite as liberal as Singapore but “not a total lockdown like China,” according to Lian.

Source: https://decrypt.co/308623/thai-police-raid-five-crypto-firms-arrest-11-in-crackdown

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author- “NFT: From Zero to Hero” and “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j