Crypto has become one of the most powerful forces in political donations. But will it impact the election?
One example is Brock Pierce, a former child actor who founded Tether and ran for president and the Senate in two separate races. Another example is Bruce Fenton, a Bitcoiner who received a respectable 4.47% of the Republican primary vote for the 2022 New Hampshire Senate seat
Crypto has had a strange relationship with U.S. elections since its creation as an economic force outside the political system.
One example is Brock Pierce, a former child actor who founded Tether and ran for president and the Senate in two separate races. Another example is Bruce Fenton, a Bitcoiner who received a respectable 4.47% of the Republican primary vote for the 2022 New Hampshire Senate seat.
However, despite its focus on transparency, crypto's most influential role in politics has been the growing prevalence of dark money. Corporations can now spend as much money on races as they want, often through organizations that obscure the identity of their donors. Sam Bankman-Fried, the founder of crypto exchange FTX, used this tactic to funnel money into races through individual donations and Super PACs.
This strategy led to him being charged with campaign finance violations, but the case was later dropped by the Department of Justice. In the 2024 election, digital asset-affiliated Super PACs have already raised more than $102 million, making them the third-most funded Super PACs. Most of these donations are going to House and Senate primaries, with some supporting Democratic candidates like Rep. Ritchie Torres (D-N.Y.). However, most of the money so far has favored Republicans. While the influence of Super PACs is apparent, it is unclear how much dark money is also playing a role.
