Crypto Billionaires Raise $160 Million To Influence US Elections

As the US elections approach, crypto billionaires have reportedly raised a massive $160 million war chest. They plan to use these funds to support candidates who favor regulations that benefit the digital asset industry.

This huge influx of money positions the cryptocurrency industry as one of the most influential players in federal campaign finance. The funds can sway the outcomes of Senate races and determine which party controls the majority.

Crypto Giants Fight For Friendly Regulations

According to a Bloomberg report, the industry’s political action committee (PAC), called Fairshake, along with affiliated groups, has seen funding surge rapidly in recent weeks. This is thanks to major contributions from big names like Ripple Labs, Andreessen Horowitz, and Coinbase Global.

Notable crypto leaders like Cameron Winklevoss and Tyler Winklevoss, co-founders of the Gemini exchange, also donated substantial amounts earlier this year.

Furthermore, the CEO of Coinbase, Brian Armstrong, whose net worth has skyrocketed as crypto markets rallied, has actively called on supporters to back lawmakers who support digital assets.

Moreover, the crypto giants aim to reduce oversight from the Securities and Exchange Commission (SEC). The SEC has filed lawsuits and imposed big fines on major crypto players. The SEC chair, Gary Gensler, has criticized the industry over concerns of “fraud and inadequate customer protections.” Companies like Coinbase, which faced SEC legal action for alleged violations, have much at stake.

Senate Races in the Spotlight

The report states Fairshake’s political influence is expected to target the reelection campaigns of Senators Sherrod Brown and Jon Tester. As the only two Democratic incumbents running in states won by Donald Trump, they face vulnerable Republican challengers.

Pressure mounts on Brown and Tester from both sides of the cryptocurrency debate. Brown, who received a failing grade on a crypto advocacy website promoted by Coinbase’s CEO, faces a challenge from the crypto-friendly Republican Bernie Moreno.

Moreover, Tester is seen as fairly neutral on crypto but faces opponent Tim Sheehy, who accuses Tester of trying to stifle crypto innovation.

The Democratic-led Senate has not acted on industry-friendly cryptocurrency regulation bills that the Republican House approved in May. However, Senator Debbie Stabenow supports legislation regulating crypto assets through the Commodity Futures Trading Commission (CFTC), which takes a different approach.

Ultimately, the crypto industry’s $160 million war chest has become a prominent force in US campaign finance. It can determine Senate race outcomes and the future of cryptocurrency regulations.

The battle between cryptocurrency billionaires and skeptics over the reelection of Senators Brown and Tester will shape the industry’s fate in Washington.

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.