Cryptocurrency Firms Build $160 Million War Chest for Political Influence

Cryptocurrency firms are gearing up for a major political push this year, with a war chest of over $160 million set to be deployed in support of candidates who favor light-touch regulations for the industry. The spending on lobbying and government relations hit a record high in 2023 and is expected to increase significantly by November.

The two largest spenders, Coinbase and the Blockchain Association, are leading the charge in supporting candidates who are friendly towards the cryptocurrency industry. Experts predict that Republicans will benefit the most from this influx of funds, as they have shown more support for the industry compared to Democrats.

The clash between Democrats and Republicans on the issue of cryptocurrency is becoming more pronounced, with Ohio Senator Sherrod Brown facing criticism from his Republican opponent, Bernie Moreno, for his stance against the industry. Moreno, a former blockchain company owner, believes that crypto represents freedom and decentralization, values that align with the Republican party.

Despite the significant financial backing from the cryptocurrency industry, it remains to be seen whether it will be able to sway the outcome of elections. Political scientist Christopher Devine points out that the industry’s goals are not necessarily partisan, as they seek to support candidates who can influence legislation affecting their industry.

As the industry continues to prioritize innovation and navigate the political landscape, the GOP appears to be a more welcoming ally for cryptocurrency firms. The upcoming elections will test whether candidates like Brown and Moreno are outliers or representatives of their parties when it comes to crypto. Ultimately, the industry is seeking to build relationships and find allies in both parties as it seeks to shape the regulatory environment for cryptocurrencies.