Crypto Industry's $119M Donations Tilted 2024 Election, Says Former Kraken CLO

Marco Santori, the former chief legal officer of the Kraken exchange, has praised the political campaign donations made by crypto industry firms during the 2024 election, describing it as “democracy at work.” In an interview, Santori argued that crypto voters played a significant role in tilting the election in favor of then-candidate Donald Trump and the Republican Party. He asserted that the donations from crypto firms, many of which are now seeing regulatory lawsuits dropped, do not represent conflicts of interest. According to Santori, detractors only label it as such when it aligns with causes they do not support, otherwise, it is simply people advocating for their own benefits.

Santori highlighted the impact of crypto voters, stating that they were responsible for 4-5% of the vote, which he described as a huge swing in an American election across various demographics. This perspective aligns with the views of Dr. Tonya M. Evans, a law professor, who predicted that the 2024 US elections would be decided by razor-thin margins and that crypto voters had the power to swing the elections.

The crypto industry was a significant contributor to political campaign financing during the 2024 election cycle, responsible for nearly half of all corporate political campaign contributions. Digital asset firms poured over $119 million to support pro-crypto candidates and policies. This included substantial spending on both Presidential and Congressional elections, such as the re-election campaign of Rep. Bryan Steil, which received $760,000 in support from the crypto political action committee Fairshake.

The former White House chief of staff Mick Mulvaney noted that the crypto industry built a professional lobbying operation during the most recent election cycle, which was absent in previous elections. This lobbying effort is credited with helping the GOP secure both chambers of Congress, the popular vote, and the 2024 US presidential election. The industry's proactive approach to engaging with the political process has positioned it as a key player in shaping policy and regulatory frameworks.

Santori's defense of crypto donations underscores the industry's efforts to navigate a complex regulatory landscape while advocating for its role in the broader financial ecosystem. The use of blockchain technology in campaign financing offers greater transparency and traceability, reducing the risk of corruption and ensuring that donations come from legitimate sources. This transparency is seen as a significant advantage in an era where public trust in political institutions is often questioned.

Moreover, crypto donations can democratize the political process by lowering the barriers to entry for smaller donors. Traditional campaign financing often favors wealthy individuals and large corporations, who can contribute significant sums of money. In contrast, crypto donations can be made in smaller increments, allowing a broader range of individuals to participate in the political process. This inclusivity empowers ordinary citizens and gives them a greater say in the political decisions that affect their lives.

However, the use of crypto in political campaign donations is not without its challenges. Regulatory bodies are still grappling with how to classify and regulate cryptocurrencies, and there are concerns about the potential for money laundering and other illicit activities. Santori acknowledged these challenges but argued that the benefits of crypto donations outweigh the risks. By embracing new technologies and adapting to the changing landscape, the political system can become more transparent, inclusive, and responsive to the needs of its citizens.

The debate over crypto campaign donations is part of a larger conversation about the role of technology in modern society. As digital currencies and blockchain technology continue to evolve, they are transforming industries and challenging traditional norms. Santori's defense of crypto donations reflects a broader trend of embracing innovation and using technology to address longstanding issues in the political and financial systems. By doing so, the crypto industry is positioning itself as a key player in the future of democracy and finance.