Cryptocurrency companies have invested heavily in the current federal election cycle, contributing nearly half of all direct corporate spending in the election, according to a recent report by the watchdog organization.
According to Public Citizen, a consumer advocacy group, the industry contributed $119 million of the total $248 million that corporations spent directly this election cycle.
The industry is increasingly trying to influence laws and regulations that favor its growth by supporting candidates who are pro-crypto. The goal is to create laws that are either more lenient or provide clear guidelines, helping to reduce the current uncertainty in cryptocurrency regulation.
Crypto corporations among top donors
Most of these funds went to Fairshake PAC, a super PAC focused on supporting candidates who favor cryptocurrency interests. This year , Fairshake PAC raised $202.9 million. More than $107.9 million came from large cryptocurrency companies such as Coinbase and Ripple.
In addition, the remaining funds came mainly from billionaire directors in the cryptocurrency space and venture capitalists. This included $44 million from founders Andreessen Horowitz, $5 million from the Winklevoss twins and $1 million from Coinbase CEO Brian Armstrong.
Corporations such as Coinbase and Ripple provided Fairshake with more than half of the financial support. This totaled $107.9 million, or 53%. Public Citizen noted that corporate spending on elections on this scale had not been seen before.
Cryptocurrency companies are second only to fossil fuel giants in political contributions
What’s more, the report shows that over the past three election cycles , donations from cryptocurrency companies accounted for 15% of all corporate contributions.
This percentage comes from the total donations recorded since the 2010 Supreme Court decision that allowed unlimited contributions to super PACs. These entities should not directly coordinate candidates’ campaigns.
Cryptocurrency companies currently rank just behind fossil fuel giants in terms of election spending. Over the past 14 years , fossil fuel companies have invested $176 million. Of these, Koch Industries stands out with a contribution of $73 million. A large portion has backed Americans for Prosperity, an organization that strongly supported Tea Party Republicans during Obama’s presidency.
The survey only takes into account donations made by corporations to super PACs and hybrid PACs. These organizations are required to report their contributions to the Federal Election Commission.
