As the 2024 US election cycle heats up, the crypto sector increasingly flexes its financial muscle, with players like Coinbase stepping into the political arena. In a recent Bloomberg report, it was revealed that while Donald Trump is courting cryptocurrency supporters for campaign contributions, some of the industry’s biggest names are notably absent from his donor list.
Coinbase Shifts Focus
Brian Armstrong, co-founder and CEO of Coinbase Global, along with the exchange itself, has yet to contribute to Trump’s campaign or his opponent, Vice President Kamala Harris.
Instead, Bloomberg reports that the exchange is focusing their donations on congressional campaigns, where they believe they can make a more significant impact.
This strategy is not only shaking up races across the country but also pushing cryptocurrency firmly onto the political agenda, as seen in bipartisan support for crypto-related legislation recently passed in the House.
Coinbase has emerged as the leading political donor in the digital asset sector, contributing over $52 million to political campaigns in 2024 alone. This surge in spending has positioned crypto firms as some of the largest corporate contributors this election cycle, according to research by OpenSecrets and Public Citizen.
However, critics of this political influence express concern over the vast sums being invested by an industry with a “history marred by scandals.” They argue that the “aggressive spending tactics could set a troubling precedent.”
Public Citizen described the situation as a “corporate Death Star” looming over elections, suggesting that the digital asset industry is seeking to “impose its demands” on candidates across both parties.
In response, crypto advocates argue that Coinbase and others are fighting for the interests of millions of Americans who wish to maintain access to digital assets.
Their goal is to establish a clearer regulatory framework that would legitimize the industry after years of what they describe as regulation by enforcement, particularly from the Securities and Exchange Commission (SEC).
Crypto PAC Claims Victory In 36 Primary Elections
Rather than backing specific candidates, Coinbase and other crypto firms are directing funds to pro-crypto political action committees (PACs), including Fairshake, which has already made contributions to candidates across party lines. This strategy aims to support congressional candidates who are favorable to the crypto industry, regardless of their party affiliation.
Interestingly, Fairshake has celebrated its success in primary elections, claiming victories in 36 out of 42 races where it intervened, demonstrating the effectiveness of its targeted funding approach.
Per the report, Armstrong recently noted in an interview that it has become increasingly risky for politicians to oppose cryptocurrencies, suggesting that it could lead to “political suicide” as he believes the industry’s influence is reshaping the political landscape.
As reported by Bitcoinist, Armstrong has been active in bipartisan outreach, contributing to Republican and Democratic candidates over the years. The exchange has also established StandWithCrypto, a movement that claims more than 1.3 million advocates, mobilizing public support for digital asset-friendly legislation.
Featured image from DALL-E, chart from TradingView.com