Crypto Firms Pump $134M Into U.S. Elections, Raising Influence and Ethics Concerns

The crypto industry has emerged as a powerful force in U.S. politics, pouring over $134 million into the 2024 elections, according to a report by the Center for Political Accountability (CPA). The findings raise concerns about the influence of digital asset firms on policymaking and the potential for regulatory instability.

The March 7 report describes this influx of money as “unchecked political spending”, warning that such contributions could erode public trust and expose companies to legal, reputational, and business risks.

“While the companies making these contributions may be seeking a favorable regulatory environment, these political donations further erode public trust,” the report stated.

Fear of Regulatory Capture

Among the most active players in crypto’s political spending spree is Fairshake, a political action committee (PAC) backed by major crypto firms, including Coinbase, Ripple, and Andreessen Horowitz. The PAC funneled over $40 million into congressional races, strategically backing candidates who support pro-crypto legislation.

Fairshake’s involvement in shaping policy has drawn scrutiny, particularly after a consumer advocacy group, Public Citizen, filed a complaint with the Federal Election Commission (FEC) in August 2024, alleging that Coinbase’s corporate donations to political groups violated federal election laws.

Despite regulatory scrutiny, Coinbase has pledged another $25 million to Fairshake for the 2026 midterm elections, signaling that crypto’s presence in politics is only growing.

Strategic Spending or Regulatory Overreach?

Crypto’s political spending has taken center stage as regulatory battles intensify. Just last week, former President Donald Trump signed an executive order to create a Strategic Bitcoin Reserve, a landmark move ahead of the first White House Crypto Summit on March 7.

The debate over crypto role in politics has intensified following a major scandal in Argentina. The Libra (LIBRA) token, a memecoin endorsed by Argentine President Javier Milei, collapsed after insiders allegedly siphoned $107 million in a rug pull, wiping out $4 billion in value within hours.

With over 100 fraud complaints filed against the project in Argentina, the CPA’s report highlights the dangers of political figures promoting unregulated digital assets, further fueling concerns about growing entanglement of the crypto industry with government affairs.