The Influence of Crypto in U.S. Elections: Dark Money and Super PACs
Crypto Industry’s Growing Influence in U.S. Elections Raises Concerns Over Dark Money
The intersection of cryptocurrency and politics has always been a curious one, with notable figures from the crypto world dipping their toes into the political arena. From Brock Pierce, the former child star turned Tether founder, running for president and Senate seats, to Bitcoiner Bruce Fenton making a respectable showing in a Republican primary, the crypto industry has made its presence felt in the political landscape.
However, beyond the headline-grabbing candidacies, the real impact of crypto on U.S. elections may lie in the realm of dark money. Thanks to the Supreme Court’s Citizens United ruling, corporations can pour unlimited funds into races through opaque channels, obscuring the identity of their donors. Figures like Sam Bankman-Fried have taken advantage of this loophole, funneling money into campaigns through Super PACs and individual donations.
With Bankman-Fried largely absent from the current election cycle, other players in the crypto industry have stepped up their game. A recent report by Public Citizen reveals that digital asset-affiliated Super PACs have raised over $102 million for the 2024 election, with a significant portion coming from corporate expenditures by companies like Coinbase and Ripple Labs.
The influx of crypto money into politics comes at a time when the industry is facing increased scrutiny and regulation from lawmakers. The collapse of FTX before the 2022 elections shifted the narrative, with Democrats raising concerns about consumer protection and Republicans pushing back against regulatory overreach.
The impact of crypto contributions on elections remains to be seen, but early signs suggest that money talks. Super PAC interventions in primary races have yielded mixed results, with most crypto-backed candidates holding their ground. As the 2024 election season heats up, all eyes are on key races like the battle for Ohio’s Senate seat, where a pro-crypto candidate is challenging a blockchain skeptic.
The growing influence of the crypto industry in U.S. elections raises questions about transparency, accountability, and the role of money in politics. As the industry continues to flex its financial muscle, the debate over dark money and corporate influence in elections is likely to intensify.
By Leo Schwartz, Fortune News Writer
