Authored by: Mensh, edited by ChainCatcher, Proofread by Nian Qing, ChainCatcher

On November 6, 2024, the most dramatic US presidential election in history came to an end. Donald Trump, known as the 'crypto president', was successfully elected, perhaps signaling the formal entry of crypto into the White House. At the same time, Bitcoin broke through the $75,000 mark, reaching a new all-time high. The hidden interest groups and beneficiaries behind it will gradually surface.

Crypto lobbying: pouring money from congressmen to the president with real gold and silver

On May 22, the US House of Representatives approved the "Financial Innovation and Technology for the 21st Century Act" (FIT21) by a high vote of 279 to 136. The bill, led by the Republicans, aims to amend existing securities and commodity regulations to establish a regulatory framework for digital assets, promoting the development of the crypto industry.

The passage of FIT21 was made possible by the huge campaign spending by crypto groups on legislators.

In addition, political action committees influence legislators' elections, which in turn affect the introduction and passage of bills. According to the political fundraising data tracking platform OpenSecrets, political action committees (PACs) supporting cryptocurrencies have invested over 0.133 billion US dollars in elections. They interfered in 51 campaigns, mainly to help candidates who promised not to heavily regulate cryptocurrencies. The three main PACs are Fairshake, Protect Progress, and Defend American Jobs.

The rise of super PACs benefited from the Supreme Court's 2010 ruling in Citizens United v. FEC, allowing corporations and unions to make unlimited expenditures in political activities. The subsequent Speechnow v. FEC decision further established the legality of 'Super PACs', which can receive and spend unlimited donations as long as they do not coordinate directly with candidates or parties. This is also why the crypto industry was able to invest up to 0.133 billion US dollars in this election.

For example, Fairshake spent more than $10 million to help California representative Katie Porter (Democrat - California) in a failed bid for the Senate, and allocated over $2 million to help Democratic Representative Jamaal Bowman (Democrat - New York) in the 16th district of New York to run for re-election. Fairshake's two targeted candidates both lost in their respective primaries. However, this super PAC has focused its efforts and funds on supporting bipartisan candidates, including California Representative Michelle Steel, elected in 2023, and North Carolina Representative Don Davis.

In the most expensive election in the history of Ohio, Defend American Jobs spent over 40 million dollars to support Republican candidate Bernie Moreno in the Ohio Senate race against long-time Democratic Senator Sherrod Brown. Brown's defeat could potentially shift the Senate towards the Republican party.

Moreno Bernie's spokesperson, Reagan McCarthy, told The Washington Post: "Bernie, unlike Sherrod Brown, does not confuse blockchain with a chainsaw. Bernie has a deep understanding of this technology, knows how to ensure its development in the USA, and will work to ensure the USA leads the world."

Protect Progress has spent over 10 million dollars to support Representative Elissa Slotkin (Democrat - Michigan) in her campaign. Slotkin voted in favor of the 21st Century Financial Innovation and Technology Act, which aims to establish a framework for regulating digital assets. The Super PAC also spent 10 million dollars to support Representative Ruben Gallego (Democrat - Arizona), who believes that "cryptos are extremely important in driving technological innovation, economic growth, and job creation" and that there is a need for "understandable regulatory frameworks to provide clarity and promote responsible innovation."

Coinbase's Brian Armstrong recently said in an interview with CNBC, "Whatever happens in this election, it will be the most crypto-friendly Congress we've ever had."

Which crypto institutions are involved in political donations?

By analyzing political donation data, one can glimpse into the funding behind the political stage. Looking at the 47 funders of Trump's Super PAC, which raised a total of 0.32747 billion dollars for 2024, among the donors who gave 1 million dollars, Winklevoss Capital Management donated around 2.366 million dollars, making them the second-largest donor. The company's founders are none other than Tyler Winklevoss, the founder of the crypto exchange Gemini.

Another Super PAC, Right For America, raised a total of 68.46 million dollars this year, with A16Z founders Marc Andreessen and Ben Horowitz contributing 5 million dollars. Of course, the crypto industry is not solely benefiting Republicans, as most donors to the three crypto-supporting Super PACs do not have clear partisan backgrounds. They simply aim to elect politicians friendly to cryptos.

In terms of institutions, the majority of donations came from the three crypto exchanges Coinbase, Ripple, and Jump Crypto, contributing 46.5 million dollars each, totaling around 0.108 billion dollars. A16Z also contributed 45.2 million dollars.

Source:

非营利性监督组织 Public Citizen 最近发布的一份报告显示，流入大选的企业资金有近一半来自加密货币行业。

2024 年 Ripple 资金前十大接收者

2024 年 Coinbase 资金前十大接收者

Top ten recipients of funds in 2024 at Jump Trading (parent company of Jump Crpyto)

Recipient of funds at Winklevoss Capital Management

Subsequent bullish: Who has already made moves in the game?

Subsequently, the regulatory framework for cryptos in the USA will inevitably be gradually perfected, and the influence in the ears of politicians will inevitably need to be transmitted through layers of lobbyists. The leading exchanges, VCs, and foundations have long been strategizing. The chart below summarizes the donor list of three super PACs for investors to pay attention to.

Donor list of Fairshake PAC

Defend American Jobs PAC donor list

Protect Progress PAC donor list

Apart from A16Z, Coinbase, and Ripple, Multicoin's appearance on the donor list of these PACs with only 0.025 million US dollars is also worth pondering. With the dream of decentralization, the tug of war between cryptos and regulation remains arduous and lengthy.