The upcoming presidential elections in the US are being shaped by billions of dollars in contributions from cryptocurrency companies. Giants like Coinbase and Ripple are trying to create a strong impact in the political arena to turn regulations in their favor. These developments raise concerns that consumer rights might be weakened.
Major Players in the Crypto World Take the Stage
Before the presidential elections in November in the US, major names in the crypto world have taken the stage. Coinbase and Ripple are supporting crypto-friendly candidates by making massive investments in super political action committees. According to a report by Public Citizen, donations from these two companies bring the risk of loosening regulations. It is particularly emphasized that large crypto firms provide 48% of the $248 million political contribution.
Coinbase and Ripple stand out as the two largest companies aiming to directly influence the 2024 elections. Rick Claypool, research director at Public Citizen, states that these firms are trying to influence the elections with a total of $99 million. More than half of the donations to Fairshake PAC this year came from companies like Coinbase and Ripple. The donations aim to elect politicians who will shape the future of cryptocurrencies.
Biggest Financiers of Political Campaigns
The cryptocurrency sector, which has become one of the biggest financiers of political campaigns in the US, has been one of the biggest beneficiaries of the freedom provided by the Supreme Court’s Citizens United decision in 2010. Since then, companies can transfer unlimited funds to super PACs and other independent groups. The result of this process has led to cryptocurrencies having an increasing say in elections.
During this process, there were even disagreements within the crypto world. For example, technology billionaire Ron Conway parted ways with crypto-friendly super PACs like Fairshake. The reason was that these groups invested millions of dollars in campaigns targeting Democratic names like Senator Sherrod Brown without his knowledge.
The significant role of cryptocurrencies in US elections provides serious clues about the direction of future regulations and economic policies. The influence of giants like Coinbase and Ripple in this process could lead to significant changes not only in the crypto world but also in financial regulations in general.
