Anika Begay
Long at odds with the Biden administration, the cryptocurrency industry has launched a major political offensive to influence the Democratic Party.
A network of pro-crypto super Political Action Committees (PACs) has raised more than $170 million to support pro-crypto candidates in the congressional primaries, focusing on support for Democrats, according to a Bloomberg report.
The Cryptocurrency Industry’s Political Offensive
To shape the trajectory of the Democratic Party, the cryptocurrency industry is channeling substantial resources through two influential super PACembarking on a mission to exert significant influence in congressional primaries.
At the forefront of this political chess game is Protect Progress, a pro-cryptocurrency political action committee that has flexed its financial muscle by pumping more than $13 million into U.S. congressional campaigns.
Along with soulmates Fairshake and Defend American Jobs, Protect Progress forms a trio that has amassed $170 million, according to documents filed with the Federal Election Commission. spoils of war for the 2024 election campaign cycle.
Supporters of this political crusade also include venture capital firm Andreessen Horowitz, commonly known as a16z, US-based crypto exchange Coinbase, and the Winklevoss brothers of the Gemini exchange, also based in the United States.
For the relationshipThe goal of these super PACs is crystal clear: to advocate for greater regulatory clarity in the cryptocurrency realm. One bone of contention stems from criticism of the U.S. Securities and Exchange Commission for what some perceive as over-regulation through enforcement actions seen in recent years.
Support both Democrats and Republicans
Unlike conventional political action committees, Bloomberg notes, these super PACs enjoy the freedom to receive “unlimited contributions” from corporations, individuals and other super PACs, but without the privilege of contributing directly or coordinate with candidates or their campaigns.
In a strategic display of bipartisan commitment, Protect Progress has committed significant funds to support pro-digital asset Democrats, a stark contrast to its peers’ propensity to support pro-cryptocurrency Republican candidates.
However, one of the keys to these campaigns was the pro-innovation stance of former President Donald Trump, who also received Donations from Kraken exchange executives, to the Winklevoss twins, to executives at Coinbase and Ripple Labs, driven by his promise to be the first “president of cryptocurrency” in the United States.
Furthermore, Trump has promised to fire Securities and Exchange Commission (SEC) Chairman Gary Gensler, who has been at the forefront of uncertainty and enforcement actions surrounding digital asset regulation.
This led to significant support for a potential Trump re-election and notable Donations to his campaign. However, Bloomberg notes that the effort by these super PACs is to follow in the footsteps of Democrats, who also see cryptocurrencies as a potential plan to leverage technology alongside pro-crypto regulation.
Featured image from DALL-E, chart from TradingView.com
