According to a Bloomberg report, the crypto lobby in the United States has issued a stark warning to political candidates, demanding their support or risk defeat at the ballot box in the November 5, 2024, elections.
Citing the recent defeat of Democratic Representative Katie Porter in California’s Senate primary as evidence, the digital asset industry points to its significant financial backing and influence on elections.
With sympathetic billionaires and a well-funded pro-crypto super political action committee (PAC), the industry aims to shape the political landscape in favor of cryptocurrency-friendly candidates.
Industry Giants Pour $10M Into Securing Pro-Crypto Nominees
Rich industry players have reportedly contributed $10 million to advertising and get-out-the-vote efforts that allegedly helped defeat Katie Porter in the open primary. That outcome paved the way for fellow Democrat Adam Schiff, perceived as more pro-crypto, to secure the nomination, the report noted.
According to the report, the lobby plans to use Porter’s loss as an example to pressure other vulnerable Democratic allies, warning that aligning with crypto critic Senator Elizabeth Warren could make their reelection campaigns more difficult.
Digital asset advocates have reportedly garnered significant financial support from sympathetic billionaires and industry leaders. The pro-crypto Super PAC, Fairshake, has amassed a “war chest” of approximately $75 million for use in the US elections.
Notable backers include Coinbase CEO Brian Armstrong, Gemini exchange founders Cameron and Tyler Winklevoss, and Marc Andreessen of Andreessen Horowitz. With significant resources, the lobby aims to influence political outcomes and promote candidates who support the industry’s interests.
Balancing Innovation And Regulation
The digital asset industry faces legislative proposals to combat illicit finance, with some bills seeking to apply anti-money laundering rules to crypto firms. Groups like the Blockchain Association and the Chamber of Digital Commerce argue that such requirements would be “unworkable” and potentially “fatal” for the industry in the US.
While criminal networks have exploited cryptocurrencies for illicit activities, the industry emphasizes the need for balanced regulation that addresses concerns without stifling innovation.
Bloomberg observes that the crypto industry’s growing political influence represents a significant shift from when it faced scandals and business failures a year ago.
Despite regulatory scrutiny and challenges in establishing practical use cases for the technology, the industry has rebounded and now wields financial clout. Lawmakers recognize the industry’s ability to pour millions of dollars into races, making it a force to be reckoned with in the political arena.
The 1-D chart shows the total crypto market cap’s valuation at $2.5 trillion. Source: TOTAL on TradingView.com
Featured image from Shutterstock, chart from TradingView.com
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Author: Ronaldo Marquez
