A CNBC report published on 20th October indicates that political contributions by the U.S. crypto industry have soared to over $190 million, with the election cycle nearing its climax. This is a significant increase compared with the previous voting cycles, which only accounted for around 13 times the amount of $15 million that was needed in the election cycle of 2020.
The increase demonstrates that the crypto industry is somehow flexing its muscles as it strives to finance key congressmen and Senators races with the goal of influencing future regulatory frameworks in the US.
Statistics from the Federal Election Commission reveal that the crypto industry accounted for almost half the amount of all corporate contributions in the election cycle. They spent over $130 million on congressional elections, including primaries, indicating strong support for policies that favour pro-crypto politicians.
Fairshake Leads the Crypto Industry Political Donations
Fairshake is a political action committee (PAC) that campaigns for the right to make trades in the crypto industry and it has recently spent a staggering $29 million during September alone with this number increasing over time most likely.
This amount of campaign spend is substantial especially in the case of Fairshake that has previously campaigned for virtue of cryptocurrencies where $20 million of these funds were directed towards two different PACs where $15 million went to the Defend American Jobs PAC whereas $5 million went to Protect Progress Democrats.
Apart from that, Fairshake spent $8.8 million on close House races in New York, Nevada, and California. In Southern California, in tight races, the GOP’s David G. Valadao and Michael Garcia got $1.3 million and a million, respectively.
While recent donations have slightly leaned toward Democrats, Fairshake’s support remains bipartisan. In September, $6.2 million went to House Democrats, compared to $2.3 million for Republicans. Pro-crypto Democrats like Rep. Patrick Ryan (D-NY) and Rep. Steven Horsford (D-Nev.) received $1.9 million and $1.7 million, respectively.
Crypto Market Analyst James Delmore Comments on Fairshake Activities
According to James Delmore, Fairshake’s support for candidates in toss-up districts is vital. It’s not only about backing pro-crypto politicians in important House races but also keeping California at the forefront of the crypto industry. James added that Fairshake’s contributions have also reached candidates in other important states like New York, Nevada, and Illinois.
At the same time, Protect Progress has funnelled over $10 million to Democratic Senate candidates in Arizona and Michigan, aiming to strengthen pro-crypto lawmakers in key battlegrounds. As crypto gains more political influence, these hefty donations highlight the industry’s long-term plan to shape regulations.
US Drives North American Crypto Dominance
Meanwhile, North America has reclaimed its position as the world’s leading crypto market, driven by a surge in institutional activity in the US, according to a Chainalysis report from Oct. 17.
From July 2023 to June 2024, North America saw $1.3 trillion in on-chain value, making up 22.5% of the global total. This growth is largely attributed to increased institutional involvement, with major transactions over $1 million making up 70% of the region’s crypto transfers, particularly in the US.
Canada also played a significant role, generating $119 billion in on-chain value during this period. The US continues to lead North America’s crypto market, driven mainly by institutional interest in Bitcoin and Ethereum spot ETFs. But this dominance comes with its own hurdles. According to Chainalysis, the US market has shown more volatility compared to others around the world.:
The political donations from the U.S. crypto industry have increased abruptly, crossing the $190 million mark, indicating that the space is becoming more active in engaging with its regulators. The future of cryptocurrency in North America, where key marketplace players such as Fairshake are spending heavily in supporting targets, is shifting day by day and it is becoming increasingly clear that the industry will have a hand in guiding policies in the future.
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