Crypto Firms Spend $134M in 2024 US Elections, Coinbase Contributes $65M

Cryptocurrency firms have invested a substantial $134 million in the 2024 US elections, sparking concerns about their increasing political influence and the potential risks to regulatory stability. This significant financial involvement has raised eyebrows among regulators, investors, and the broader financial community, as highlighted in a report by the Center for Political Accountability (CPA).

The report underscores that the unchecked political spending by these firms presents critical challenges. While these companies may be seeking a favorable regulatory environment, their political donations are eroding public trust and exposing them to legal, reputational, and business risks. The report warns that as the industry continues to seek influence through vast contributions and opaque financial maneuvers, the risks of instability, regulatory backlash, and public distrust only grow.

One of the largest contributors to the 2024 US elections was Fairshake, a political action committee (PAC) backed by major crypto firms including Coinbase, Ripple, and Andreessen Horowitz. Fairshake spent over $40 million to support candidates aligned with pro-crypto policies, actively participating in key congressional races to shape legislation favorable to digital assets. Coinbase has further committed an additional $25 million to Fairshake for the 2026 midterm election cycle, emphasizing their long-term strategy to influence regulatory outcomes.

The influx of crypto money into politics has not gone unnoticed by regulators. In August 2024, the consumer advocacy group Public Citizen filed a complaint with the Federal Election Commission (FEC), alleging that Coinbase’s corporate contributions to Fairshake and the Congressional Leadership Fund constituted a violation of federal election law due to their status as a federal contractor. This move highlights the growing scrutiny and potential legal challenges that crypto firms may face as they navigate the political landscape.

Despite the risks, some regulatory experts view these donations as necessary for advancing more innovation-friendly regulations. Anndy Lian, an author and intergovernmental blockchain expert, sees this spending as crucial for regulatory clarity, which is essential for stability and growth in the crypto industry. He believes that these donations can boost investor confidence by reducing uncertainty, as seen in pro-crypto candidate wins boosting market sentiment. However, he also acknowledges the risks of regulatory capture, where the interests of large firms take priority, which could erode crypto investor trust.

Lian suggests that the crypto community’s transparency and decentralization might mitigate these risks