The 2024 U.S. election marked a significant turning point for the cryptocurrency industry, as it successfully leveraged its financial resources to influence the outcome and secure favorable representation in Congress.
Crypto-related Political Action Committees (PACs) and other industry groups raised over $245 million, according to Federal Election Commission data. This massive fundraising effort was part of a targeted strategy to support candidates friendly to the industry and defeat critics. The impact was substantial: nearly 300 pro-crypto lawmakers will take seats in the House and Senate, giving the sector unprecedented influence over the legislative agenda.
One notable example of the industry’s success was the election of Bernie Moreno, a Republican U.S. Senate candidate from Ohio. Despite being a political newcomer, Moreno benefited from $40 million in cryptocurrency industry funding and defeated Democratic incumbent Sen. Sherrod Brown. Moreno’s victory was part of the Republican sweep that gave the party control of the Senate.
Key Factors in Crypto’s Political Success
The cryptocurrency industry’s political strategy this cycle focused on simplifying their message and targeting their spending effectively. By identifying candidates as either ‘with the industry or against it,’ crypto companies and executives were able to mobilize rapidly and deploy their resources through a sophisticated advertising machine across battleground states.
The industry also learned from the experiences of Big Tech, choosing to invest heavily in supporting friendly candidates before the election rather than relying on lobbying efforts afterward. This approach proved highly effective, with Fairshake – a super PAC backed by Coinbase – winning virtually every race it funded in the general election.
Implications for Regulatory Landscape
The cryptocurrency industry’s newfound political influence is likely to have significant implications for the regulatory landscape. With nearly 300 pro-crypto lawmakers entering Congress, the sector is poised to shape the legislative agenda on issues related to blockchain technology and digital assets.
The industry’s success also appears to have influenced the Securities and Exchange Commission (SEC). SEC Chairman Gary Gensler, a vocal critic of the crypto industry, announced his retirement effective Inauguration Day, potentially paving the way for more crypto-friendly regulation under the new administration.
As the crypto industry celebrates its political victories, industry leaders are positioning themselves for continued influence. Coinbase CEO Brian Armstrong reportedly met with President-elect Donald Trump to discuss potential appointments, including the possibility of a crypto czar in the White House.
The stage is set for a new era in cryptocurrency regulation and political engagement, with the industry having demonstrated its ability to mobilize resources and influence electoral outcomes effectively.
