August 22 Crypto News – Crypto Sector’s $202.9 Million Political Contribution: Fairshake PAC’s Big Payday

August 22 Crypto News – Crypto Companies Surge in Political Donations: Coinbase and Ripple Top the List

August 22 Crypto News – In a notable shift in political funding, major cryptocurrency companies have emerged as the top contributors to political campaigns this year. According to a recent report by Public Citizen, these firms have donated a substantial portion of the $248 million contributed to candidates in preparation for the upcoming U.S. presidential election in November.

Coinbase and Ripple Dominate Political Donations

Coinbase and Ripple are at the forefront of this trend, significantly investing in super political action committees (super PACs) that support candidates advocating for favorable cryptocurrency regulations. The report highlights that these two companies alone have contributed approximately $99 million to influence the 2024 elections.

Rick Claypool, a research director at Public Citizen, emphasized the scale of these contributions on Twitter, stating, “The biggest of the Big Crypto corporate money donors are Coinbase and Ripple, which together have dumped about $99 million into buying influence over the 2024 elections.”

Fairshake PAC Receives Major Boost

Fairshake PAC, a significant beneficiary of these crypto donations, has amassed $202.9 million. Over half of this amount—$107.9 million—comes directly from major cryptocurrency firms such as Coinbase and Ripple. This substantial funding has positioned Fairshake PAC as a leading recipient of corporate crypto contributions.

Other notable contributions include $44 million from the founders of Andreessen Horowitz, $5 million from the Winklevoss twins, and $1 million from Coinbase CEO Brian Armstrong. Additionally, Jump Crypto contributed $15 million to Fairshake PAC, while Payward Inc. and Circle Internet Financial each added $1 million.

Ron Conway’s Withdrawal Highlights Internal Crypto Disputes

Earlier this week, Ron Conway, a prominent Democratic donor and tech billionaire, distanced himself from several crypto super PACs, including Fairshake. Conway’s decision followed the revelation that these PACs had pledged $12 million to oppose Sen. Sherrod Brown (D-OH) without his consent. This move underscores ongoing divisions within the crypto community regarding political support and donation strategies.

Historical Context and Rising Influence of Crypto Sector

The significant rise in political contributions from the cryptocurrency sector can be traced back to the U.S. Supreme Court’s 2010 ruling in Citizens United v. Federal Election Commission. This landmark decision allowed corporations to channel unlimited funds to super PACs and independent groups, provided there is no direct coordination with candidates’ campaigns.

Since this ruling, cryptocurrency corporations have been among the largest beneficiaries of this expanded political spending environment. The sector has contributed $129 million over the last three election cycles, representing 15% of the total corporate contributions of $884 million since the decision.

Crypto Sector’s Growing Role in Federal Elections

The crypto industry’s electoral influence began in earnest in 2020 when FTX founder Sam Bankman-Fried’s Alameda Research donated $5.2 million to Future Forward, a PAC supporting Biden-Harris. By 2024, Coinbase has emerged as the second-largest corporate spender in federal elections, following Koch Industries.

FAQ: Major Crypto Companies’ Political Contributions