Cryptocurrency’s Growing Influence on US Elections: Coindesk

The cryptocurrency industry is demonstrating unprecedented political influence in the US elections, industry experts reveal according to coindesk.

Cryptocurrency-focused political action committees (PACs) like Fairshake have raised around $85 million to support pro-crypto candidates and educate lawmakers about industry-friendly regulation. Of particular note is Fairshake’s $10 million investment, which decisively contributed to the defeat of congresswoman Katie Porter, known for her criticism of cryptocurrencies.

Additionally, Fairshake distributed resources to two affiliated PACs — Defend American Jobs and Protect Progress — that supported Republican and Democratic candidates, respectively, achieving significant victories. Over the past two months, Defend American Jobs has invested nearly $500,000 in advertising for Mark Messmer, an Indiana Republican who won the congressional nomination.

Kristin Smith, CEO of the Blockchain Association, commented on the rise in cryptocurrency influence: “It’s at a level we haven’t seen in previous election cycles.” This new wave of influence also appears to have affected previously skeptical politicians such as Senator Sherrod Brown, who is now showing an openness to considering cryptocurrency-friendly legislation.

Kyle Bligen, director of financial policy at Chamber of Progress, noted that even traditionally reticent politicians are reconsidering their positions to avoid facing campaigns funded by the cryptocurrency industry.

While past efforts to influence national elections have sometimes failed, the current operation is seen as more sophisticated. “Now it’s like, ‘Wow, this is the powerful crypto industry and they’re here to influence Washington and they’re utilizing every tool to do so,’” Smith added.

Interest in the presidential elections is also high, with studies indicating a preference among cryptocurrency owners for Donald Trump, although he still demonstrates an ambivalent stance towards cryptocurrencies. Trump’s stance and Vivek Ramaswamy’s crypto policies, which although out of the race, could influence Trump’s future policies if he is elected.

In the Democratic field, Biden’s possible re-election raises concerns and hopes. While some fear continued regulatory uncertainty under the watch of SEC Chairman Gary Gensler, others, like Bligen, see an opportunity for cryptocurrency-friendly legislation after the election.

The cryptocurrency industry faces significant challenges, including the need for greater education and engagement on issues such as privacy and national security. The crackdown on services like Tornado Cash exemplifies the difficulties in balancing privacy with regulatory concerns.

Finally, significant efforts are being made at the state level as well, where pro-cryptocurrency policies can be tested as models for federal regulations.

Disclaimer:

The views and opinions expressed by the author, or anyone mentioned in this article, are for informational purposes only and do not constitute financial, investment or other advice. Investing in or trading cryptocurrencies carries a risk of financial loss.