The cryptocurrency industry made a powerful statement in the 2024 election, spending an estimated $135 million to support more than 50 candidates across the United States. In a remarkable result, 48 out of 48 candidates backed by crypto’s largest political action committees (PACs) emerged victorious, signaling a significant milestone in crypto-political influence. With key wins in both the House and Senate, the industry has positioned itself as a serious player on Capitol Hill, aiming to shape the legislative landscape for blockchain and digital assets.
Record-breaking spending for a political shift
Crypto’s largest PAC, Fairshake, along with affiliated PACs like Defend American Jobs and Protect Progress, has raised and distributed funds from industry giants like Coinbase (NASDAQ:COIN), Ripple Labs, and venture capital firm Andreessen Horowitz. Their combined spending has surpassed traditional donors and trails only the fossil fuel industry in total political contributions. Fairshake’s influence, which influenced races across the country, marks a new approach for crypto PACs, where the focus was on electing industry-friendly candidates without overtly promoting crypto.
One of the most significant victories was in Ohio, where Fairshake spent over $40 million to support Bernie Moreno, a Republican who unseated longtime Democratic Sen. Sherrod Brown. Notably, campaign messages rarely mentioned crypto, instead focusing on economic policy, social security and energy independence, showing how the industry is shifting its strategy to appeal to broader voter bases while securing allies.
A new era of crypto political influence and legislative influence
After the election, a coalition of crypto lobbyists celebrated “the most pro-blockchain and pro-crypto Congress in history,” calling on President-elect Donald Trump to remove SEC Chairman Gary Gensler. The SEC’s strict approach to crypto regulation has long been a point of contention within the industry, with Coinbase CEO Brian Armstrong and other leaders hoping to soften regulatory stances.
With electoral victories in place, crypto PACs aim to consolidate those gains in the next legislative cycle. Coinbase and Ripple are expanding their lobbying efforts, adding more representatives to advocate for favorable policies. Meanwhile, Andreessen Horowitz is establishing an office in Washington to deepen the sector’s engagement with policymakers. Such efforts underscore the industry’s commitment to long-term political influence beyond mere campaign contributions.
Crypto vs. Established Donors: Outspending Competitors
Crypto PAC’s recent spending efforts highlight a growing shift in corporate political influence. Fairshake and its subsidiaries have outspent traditional corporate donors such as Koch Industries and Chevron Corp., focusing on incumbents and challengers that support innovation and deregulation in the blockchain space. Their strategy also serves as a “scare tool,” according to Public Citizen’s Rick Claypool, pushing politicians to adopt pro-crypto stances without alienating the broader voter base.
In Michigan, Protect Progress spent $10 million to support Elissa Slotkin and Ruben Gallego, both of whom previously voted for pro-crypto legislation. With such heavy investment in these candidates, the industry aims to build a reliable base of crypto-friendly lawmakers in Congress, ensuring positive votes on critical issues.
Challenges and the way forward
Despite these gains, crypto’s political journey faces obstacles. Proposed trade tariffs and regulatory changes under President-elect Trump could pose challenges, particularly with tariffs on goods from China, where some crypto manufacturing supply chains are based. Higher tariffs could increase costs for companies like Nvidia ( NASDAQ:NVDA ) and other tech companies working in blockchain, raising broader questions about the cost-effectiveness of supporting crypto growth.
Moreover, spending alone does not guarantee favorable legislation. As Peter Loge of George Washington University noted, campaign contributions secure meetings but do not ensure policy change. Crypto PACs will need to consistently support candidates over multiple election cycles to see meaningful rule shifts.
Long-term plans and a template for future influence
Fairshake and its affiliates are already gearing up for the next election cycle, with Coinbase committing another $25 million and Andreessen Horowitz adding $23 million in campaign funds for the 2026 midterms. This sustained investment reflects a strategic approach that other industries can emulate, focusing on building long-term relationships with candidates and ensuring repeat support.
As crypto continues to gain momentum, the industry’s deep pockets and strategic alignment with key issues like economic growth and innovation position it as a potent force. While crypto PACs have largely avoided discussing blockchain directly with the public, their success shows that targeted spending can drive political influence in ways that align with core business goals.
The the 2024 election marks a turning point for crypto’s role in American politics. By flexing its financial muscle and strategically supporting candidates, the cryptocurrency industry is ensuring its voice will be heard in Congress, setting the stage for favorable legislation and regulatory changes that could redefine the future of blockchain in America.
