Crypto Donations Surpass $238 Million in US 2024 Election, What’s Next?

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As a seasoned crypto investor and tech enthusiast who has witnessed the rise of cryptocurrencies from their infancy, I find the recent surge in crypto donations during the 2024 US election cycle nothing short of revolutionary. The influence of the crypto industry on Washington’s policymaking is unprecedented, surpassing even traditional heavyweights like oil and pharmaceuticals.

2024 U.S. election campaign funding from cryptocurrencies has reached unprecedented levels, amounting to more than $238 million. As a result, the crypto sector is now considered one of the most significant players in political contributions, accounting for approximately 48% of all corporate donations in Washington.

New findings indicate that contributions made through cryptocurrencies are surpassing the long-standing leaders in donations, namely oil and pharmaceutical sectors.

This increase in momentum is paving the way for the cryptocurrency sector to exert an unparalleled impact on policy-making within Washington, D.C.

Most of the cryptocurrency donations are primarily funneled through individual gifts and Political Action Committees (PACs), with prominent figures such as Coinbase, Ripple, and Andreessen Horowitz (a16z) making significant contributions. Collectively, these three entities donated an astounding $160 million to pro-cryptocurrency candidates like John Deaton.

Approximately 75% of the total cryptocurrency donations, amounting to around $181 million, have been channeled through Political Action Committees (PACs), while the remaining $57 million were from individual donors. Notable figures in the crypto world like Chris Larsen, co-founder of Ripple, the Winklevoss twins who founded Gemini, and partners Marc Andreessen and Ben Horowitz from Andreessen Horowitz have made substantial contributions to these causes.

James Delmore, a research analyst at Breadcrumbs, posits that the cryptocurrency sector is communicating to lawmakers that the existing regulatory system isn’t serving investors effectively. The donations made in crypto highlight the industry’s commitment to creating a more accommodating regulatory atmosphere. Advocates believe that such an environment is crucial for the long-term survival of the digital asset market within the United States.

It’s worth mentioning that various sources show that a powerful Political Action Committee focused on cryptocurrency has invested more than $137 million in political campaigns and advertisements.

Crypto Donations Reaches Both Presidential Camps

Representatives from both significant political parties are gaining advantages due to the expanding impact of the industry. Previous U.S. president Donald Trump has garnered $22 million in funding from 17 key figures within the cryptocurrency sector. Trump has consistently vowed to position the U.S. as a world leader in digital currency. Furthermore, he has revealed intentions to create a governing body tasked with developing clear and regulated guidelines for the cryptocurrency market, alongside his proposal to replace the current Chair of the Securities and Exchange Commission (SEC), Gary Gensler.

As a crypto investor, I’ve noticed that unlike me who’s been actively accumulating my portfolio through various means, Vice President Kamala Harris has built her $12 million wealth primarily from Ripple’s co-founder Chris Larsen. A significant portion of this sum, about $11.7 million, comes in the form of XRP, which Mr. Larsen generously donated.

Furthermore, it’s worth noting that crypto advocate Elon Musk made a contribution of $75 million to a political action committee (Super PAC) with pro-Trump leanings. However, this donation was not in the form of cryptocurrencies.

What’s Next for Bitcoin?

In the lead-up to the 2024 elections, the results could significantly influence how cryptocurrencies are regulated and embraced within the U.S. Some experts believe that if Donald Trump wins, it might cause an increase in Bitcoin’s value. Daan Crypto Trader, a well-known trader, has forecasted a possible 10% fluctuation in Bitcoin’s price based on the election results.

Currently, Bitcoin (BTC) is hovering around $68,750, marking a 6.8% drop from its all-time high of $73,750 reached in March this year. Over the past month, BTC has shown impressive growth with its value surging over 10%. In the immediate future, Bitcoin appears to be holding steady as crypto enthusiasts eagerly await the election outcomes for potential market movements.

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2024-11-05 12:09