Almost half of corporate donations during the 2024 election came from the crypto industry, according to a report.

• Nearly half of all corporate donations during this election cycle have come from crypto companies, according to a report by Public Citizen.
• Over $119 million has been spent by crypto-aligned corporations on the 2024 elections.
• Super PACs have received most of the cash intended for pro-crypto candidates' election.

In the run-up to the 2024 U.S. elections, crypto companies are pouring money into efforts to sway the outcome.

Over 80% of the corporate money spent on the election came from the crypto industry, which raised approximately $119 million, according to a report from Public Citizen this week.

Super PACs are receiving most of the money from the crypto industry to support pro-crypto candidates running for office this year. The industry has been under increased scrutiny during the Biden administration, and Coinbase and Ripple are two of the largest companies that have been involved in legal battles with the Securities and Exchange Commission.

The crypto industry and Democrats have a rift, and Donald Trump, the Republican nominee, has attempted to exploit it by positioning himself as the pro-crypto candidate and keynoting a major bitcoin conference. However, money is flowing into both parties, and the House, Senate, and presidency remain uncertain.

No other sector is as slow to adapt to crypto as oil companies and banks, which have traditionally been significant political donors.

The crypto sector has accounted for 15% of all disclosed contributions since 2010, with over 90% of the corporate crypto cash being raised during this election cycle.

The research director at Public Citizen, Rick Claypool, who wrote the latest report, stated that the significant funds received by crypto companies to "suppress criticism of crypto and promote its supporters" reflect the flaws of the Supreme Court's Citizens United decision.

Since the 2010 ruling, crypto corporations have spent the second-most on election-related activities, just behind fossil fuel conglomerates, according to Claypool's research.

Fairshake, a pro-crypto, bipartisan super PAC, has become one of the top-spending PACs this year, with funding from some of the industry's leading companies.

Over $169 million in funds for Fairshake and its affiliated PACs can be traced back to four sources: Coinbase ($49 million), Andreessen Horowitz ($47 million), Ripple ($47 million), and Jump Crypto ($15 million). These contributions account for more than 90% of the total funds raised.

The funding for the project has come from a variety of sources, including a $1 million donation from Coinbase CEO Brian Armstrong and a $5 million contribution from the Winklevoss twins.

According to FEC reports, Fairshake spent nearly $75 million in July. OpenSecrets data shows that Fairshake has almost $120 million left to spend with less than 80 days until the November election.

The super PAC has committed $25 million from its pool of cash to 18 House candidates in the general election, with $11.5 million going to Democrats and $13.5 million to Republicans. Additionally, it has pledged another $18 million to three Senate races.

'Eye-popping sums'

The industry's strategy paid off in the primaries.

A Public Citizen's report revealed that out of the 42 primary races that received funding from crypto-backed super PACs, the candidate preferred by the crypto industry won 36. However, many of these candidates are not openly advocating for their stance on crypto.

Claypool stated that when Fairshake and its affiliates spend money to influence races, they do not mention crypto in their ads, either by attacking crypto skeptics or boosting crypto supporters.

In the congressional races in New York and California, campaign ads funded by crypto attacked the candidates with typical political attacks, without mentioning crypto.

Crypto businesses are spending large amounts of money to make themselves prominent during this election cycle, making crypto a highly debated topic, according to Claypool.

Despite the tension that has arisen recently, Democrats are making an effort to demonstrate their ability to collaborate with the industry.

In August, Senate Majority Leader Chuck Schumer, D-N.Y., hosted a virtual town hall called "Crypto4Harris" where he stated that a crypto law could be passed by the Senate before the end of the year.

The campaign team of Vice President Kamala Harris is actively working to create a platform stance on the crypto industry and reset the approach taken by President Joe Biden, several key Democrats told CNBC. On Tuesday, Harris' campaign announced plans to adopt a pro-crypto innovation stance.

Faryar Shirzad, Coinbase Chief Policy Officer, commended the move and wrote on X that he was "pleased to participate in several discussions with the Harris team." He characterized the approach as "constructive" and stated that "the dialogue was a crucial first step."

Since Trump became the pro-crypto candidate, digital asset executives have been contributing money to his campaign.

On the campaign trail, Trump has embraced more optimistic views on cryptocurrencies, and in July, he revealed that he had raised $25 million from crypto supporters, although CNBC hasn't verified this amount.

In San Francisco and Nashville, crypto executives attended fundraisers for Trump, and the Republican nominee pledged to the audience that if he were reelected, he would guarantee that the federal government would never sell its bitcoin holdings.

"This afternoon, I'll outline my strategy to make the US the global leader in cryptocurrency and the world's dominant Bitcoin power," Trump declared confidently. "We'll achieve it."

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