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.

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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.”

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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.

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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”.

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Pantera Capital founder faces tax probe over $850M crypto profits: Report

Pantera Capital founder faces tax probe over $850M crypto profits: Report

Dan Morehead, founder and managing partner of crypto investment firm Pantera Capital, is reportedly under investigation for potential federal tax law violations after moving to Puerto Rico, a well-known tax haven.

In a letter received on Jan. 9, the US Senate Finance Committee (SFC) requested information on over $850 million in investment profits Morehead earned after relocating to Puerto Rico in 2020.

Morehead “may have treated” these profits as exempt from US taxes, according to a Jan. 9 letter from Senator Ron Wyden seen by The New York Times.

According to the letter, the SFC was investigating tax compliance among wealthy Americans who moved to Puerto Rico and may have improperly applied a tax break to avoid paying taxes on income earned outside the island.

“In most cases, the majority of the gain is actually U.S. source income, reportable on U.S. tax returns, and subject to U.S. tax,” the letter reportedly states.

“I believe I acted appropriately with respect to my taxes,” Morehead said in a statement, adding that he moved to Puerto Rico in 2021.

Pantera Capital, founded by Morehead, was the first cryptocurrency fund in the US and has seen its initial investments grow by more than 130,000%, he wrote in a blog post on Nov. 26, 2024.

Morehead launched Pantera Bitcoin Fund in July 2013, making a lifetime return of more than 1,000 times the return on its first Bitcoin purchase at $74, he said. He added that 1% of financial wealth hadn’t come across Bitcoin at the time.

Pantera Capital holds over $5 billion worth of assets under management, with over 100 venture investments and 47% of its capital invested outside the US, according to the company’s homepage.

Crypto taxes attract regulatory attention worldwide

The investigation into Morehead comes amid increased regulatory scrutiny of cryptocurrency taxes. In June 2024, the Internal Revenue Service (IRS) issued a new rule requiring US crypto transactions to be subject to third-party tax reporting for the first time.

Starting in 2025, centralized crypto exchanges (CEXs) and other brokers will start reporting the sales and exchanges of digital assets, including cryptocurrencies.

This decision could push crypto investors to decentralized platforms in a “paradoxical situation” that could make tax revenue harder to track, Anndy Lian, author and intergovernmental blockchain expert, told Cointelegraph.

Showcasing the crypto industry’s backlash, the Blockchain Association filed a lawsuit against the IRS in December 2024, arguing that the rules are unconstitutional because they include decentralized exchanges under the “broker” term, extending data collection requirements to them.

 

Source: https://cointelegraph.com/news/pantera-capital-founder-tax-investigation-crypto

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”.

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Over 80% of recent Binance token listings are bleeding red

Over 80% of recent Binance token listings are bleeding red

Over 80% of newly listed cryptocurrencies are in the red on Binance, the world’s largest cryptocurrency exchange in terms of trading volume.

More than 80% of the tokens listed during the past six months have fallen in value since their listing, raising concerning implications for investors looking for the newest cryptocurrencies.

From the 31 analyzed tokens, only five coins have appreciated, including Memecoin (MEME), Ordi (ORDI), the Solana-based Jupiter (JUP) token, Jito (JTO) and Dogwifhat (WIF), according to pseudonymous crypto researcher Flow’s May 17 X post:

Binance tokens listed during the past six months. Source: Flow

The fact that over 80% of newly-launched tokens are in the red signals a challenging market environment, according to Anndy Lian, intergovernmental blockchain expert and author of NFT: From Zero to Hero.

Lian told Cointelegraph that the current state of the cryptocurrency market has been described as calm, with certain altcoins still trending despite a general lack of momentum overall. He added:

“Many of the projects listed on Binance may have a longer period of growth, the growth may not be instant like the previous bull market.”

However, the new tokens on Binance are listed with an average fully diluted valuation of over $4.2 billion despite not having a real user base. This can significantly limit their upside potential, according to pseudonymous researcher Flow:

“More often than not, tokens launching on Binance are not investment vehicles anymore – all their upside potential is already taken away. Instead, they represent exit liquidity for insiders who capitalize on retail lack of access to quality early investment opportunities.”

Memecoins: the flavor of the month for retail investors

Despite having no venture capital backing, the Ordi token was the most profitable, up over 261% since its launch, while controversial memecoin Dogwifhat took second place, with an over 117% price increase.

Retail interest was the main factor driving memecoin growth, which can operate independently from the altcoin market segment, according to Lian, who told Cointelegraph:

“Since some of them are long-term hodl, many of the retail investors swarmed to memecoin. You can see that from the performance of MEME and WIF. In fact, if you looked the the trading volume. Six of the top trading coins are memes.”

Further showcasing the hype around memecoins, Pepe hit a new all-time high of above $0.000010 on May 13, a day after Keith Gill — the man widely credited with kicking off the 2021 GameStop short squeeze — returned to social media.

Capitalizing on the retail hype, one savvy Pepe trader turned $3,000 into $46 million within a month during Pepe’s rise to its recent all-time high.

 

Source: https://cointelegraph.com/news/over-80-binance-token-listings-loss-red

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”.

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