Long at odds with the Biden administration, the crypto industry has launched a major political offensive to influence the Democratic Party.
According to a Bloomberg report, a network of pro-crypto super Political Action Committees (PACs) has raised over $170 million to back crypto-friendly candidates in congressional primaries, focusing on supporting Democrats.
Crypto Industry’s Political Offensive
To shape the Democratic Party’s trajectory, the crypto industry is funneling substantial resources through two influential super PACs, embarking on a mission to wield significant influence in congressional primaries.
At the forefront of this political chess match is Protect Progress, a pro-crypto political action committee that has flexed its financial muscles by injecting over $13 million into US congressional campaigns.
According to Federal Election Commission filings, along with kindred spirits Fairshake and Defend American Jobs, Protect Progress forms a trio that has amassed a $170 million war chest for the 2024 campaign cycle.
Backers of this political crusade also include venture capital firm Andreessen Horowitz, commonly known as a16z, US-based exchange Coinbase, and the Winklevoss brothers of the Gemini exchange, also based in the US.
Per the report, the objective of these super PACs is crystal clear: advocate for heightened regulatory clarity within the crypto realm. A bone of contention arises from criticisms levied against the US Securities and Exchange Commission for what some perceive as regulatory overreach through enforcement actions witnessed over the past years.
Backing Both Democrats And Republicans
Unlike conventional political action committees, Bloomberg notes that these super PACs enjoy the freedom to receive “unlimited contributions” from corporations, individuals, and other super PACs, but without the privilege of directly contributing to or coordinating with candidates or their campaigns.
In a strategic display of bipartisan engagement, Protect Progress has allocated substantial funds towards backing pro-digital asset Democrats, in stark contrast to its siblings’ proclivity for supporting crypto-friendly Republican candidates.
However, one of the keys to these campaigns has been the pro-innovation stance of former President Donald Trump, who has also received donations from Kraken exchange executives, the Winklevoss twins, Coinbase and Ripple Labs executives, led by his promise to be the first “crypto president” in the US.
In addition, Trump has vowed to fire Securities and Exchange Commission (SEC) Chairman Gary Gensler, who has been at the forefront of uncertainty and enforcement actions regarding regulating digital assets.
This has led to significant support for a potential Trump re-election and notable donations to his campaign. Nonetheless, Bloomberg notes that the effort of these super PACs is to follow in the footsteps of Democrats, who also see cryptocurrencies as a potential plan to leverage the technology along with pro-crypto regulation.
Featured image from DALL-E, chart from TradingView.com
