Crypto PACs Pour Over $102M into Pro-Crypto Candidates: What's in Store for Biden, Trump, and More?

In the run-up to the upcoming elections in the United States (US), cryptocurrency has emerged as a pivotal topic of discussion among voters, particularly in key battleground states.

A comprehensive online survey, conducted jointly by the Digital Currency Group (DCG) and The Harris Poll, and published by the Blockchain Association on 7 May, underscores the escalating significance of digital currency policies in the electoral discourse.

Growing Favourable Sentiments Toward Crypto

With a sample size of 1,201 registered voters surveyed in April, the findings reveal compelling insights into voter sentiments towards cryptocurrency.

Notably, over two-thirds of respondents expressed agreement that "crypto is for people like them and more equitable than the financial system."

Julie Stitzel, Senior Vice President of Policy at DCG, said:

"This data shows crypto is top of mind for voters in swing Senate states and that a pro-crypto position is a net positive for policymakers and candidates. The poll also underscores a strong desire for policymakers to establish reasonable regulations that protect consumers without stifling innovation."

This sentiment appears particularly pronounced in swing states such as Michigan, Nevada, Ohio, Montana, Pennsylvania, and Arizona, where more than 90% of respondents indicated their intent to participate in the 2024 elections, indicating the potential significance of cryptocurrency as a decisive issue for candidates.

Blockchain Association CEO Kristin Smith referenced the poll:

"Digital assets have emerged as a significant issue in the upcoming election. Additionally, over one quarter (26%) of voters indicate that they are actively weighing political candidates' positions on digital assets when making their decisions. These data underscore the increasing relevance of our issues in shaping the electoral landscape of 2024."

Furthermore, the survey highlights widespread dissatisfaction with the current financial system, with a striking 80% of respondents agreeing that it disproportionately favours elites over ordinary citizens, while 79% perceive it as lacking transparency.

Conversely, only 38% of respondents feel that the financial system is designed for individuals like themselves, with merely 26% considering it fair to all.

Support for an Overhaul of Crypto Regulation

Amidst the burgeoning interest in cryptocurrency, a notable segment comprising approximately 20% to 25% of voters is advocating for elected officials to prioritise the regulation of digital assets.

This group emphasizes the need for robust government oversight to ensure consumer and investor protections within the cryptocurrency sphere.

Source: Survey findings

Interestingly, this call for regulation is even more fervent among individuals with a positive stance towards cryptocurrencies, with nearly one-third of them advocating for targeted regulatory initiatives.

The findings of the study underscore the potential for a balanced regulatory approach to resonate with a broad spectrum of voters, encompassing both crypto enthusiasts and sceptics alike.

Over $102M Raised by Crypto Super PACs in View of Upcoming Elections

A political action committee (PAC) dedicated to supporting candidates for federal office in the upcoming 2024 US elections has surpassed a significant milestone by raising over $100 million in funding.

As revealed in a report by Public Citizen on 6 May, the Fairshake Super PAC, along with its affiliated entities, Defend American Jobs PAC and Protect Progress PAC, collectively amassed more than $102 million.

Drawing from data provided by the nonpartisan transparency group Open Secrets, Public Citizen highlights the crypto-focused PACs' fundraising success, which exceeds that of Donald Trump's Make America Great Again political action committee.

Source: OpenSecrets.org

Notably, Fairshake, historically aligned with Republican candidates, recently made headlines for launching an attack ad targeting Senate candidate Katie Porter, a Democrat from California.

Meanwhile, Protect Progress has thrown its support behind Democratic candidates in Alabama and Texas, with Shomari Figures and Julie Johnson emerging victorious in their respective primaries.

These candidates are now poised to compete against Republicans in the November elections, marking a pivotal moment in the intersection of cryptocurrency advocacy and political campaigns.

Prominent cryptocurrency firms such as Coinbase and Ripple have contributed to the fundraising efforts of Fairshake and its associated PACs ahead of the 2024 elections.

Among a total of eight corporate super PACs, these two entities stand out, with a notable presence in the cryptocurrency realm.

However, their involvement comes amidst a backdrop where four of their peers are entangled in legal disputes with the SEC, underscoring the complex regulatory environment surrounding the industry.

Notably, the remaining funders comprise influential figures from the billionaire and venture capitalist spheres. Andreessen Horowitz, for instance, spearheaded fundraising efforts with an impressive $11 million, followed by contributions from the Winklevoss twins totaling $5 million and a significant $1 million donation from Coinbase CEO Brian Armstrong.

Moreover, a recent report sheds light on the electoral success of primary candidates backed by cryptocurrency PACs in 2024.

Impressively, only one of the six primary candidates endorsed by crypto PACs has faced defeat thus far.

The coming months will witness the participation of an additional 11 candidates supported by Fairshake and its affiliated PACs in their respective party primaries.

Public Citizen Researcher Rick Claypool said:

"Eleven primary races that include crypto-backed candidates remain [in 2024]. Then it’s onto the general election, where narrow majorities mean super PAC spending can tip congressional control."

Among these contenders are Republican Senate candidates Jim Justice from West Virginia and Jim Banks from Indiana, both of whom have received substantial backing from Defend American Jobs, the Republican crypto super PAC, exceeding $3 million in support.

In addition, Republican candidate John Deaton, often regarded as a dark horse contender, has garnered substantial backing from the crypto community as he seeks to challenge Massachusetts Senator Elizabeth Warren for her seat.

The Public Citizen report continued on:

"The crypto super PACs should be expected to continue the sleight-of-hand tactic of pushing messages fine-tuned toward their intended outcome — defeating or electing candidates who will prioritize the sector's interests — while distracting voters from their true purpose."

Pro-Crypto Trump, Not So Pro-Crypto Biden

Amidst shifting political dynamics, the potential re-election of Donald Trump as President of the US in November has sparked speculation regarding the future of Bitcoin and cryptocurrency.

Insights from Standard Chartered suggest that a second Trump administration could yield positive implications for Bitcoin.

According to Geoffrey Kendrick, a digital assets researcher at Standard Chartered, Trump's stance on cryptocurrency may be less stringent compared to that of a potential Biden administration.

He wrote:

"We think that a second Trump administration would be broadly positive via a more supportive regulatory environment. In a scenario of U.S. fiscal dominance, we think bitcoin (BTC) would provide a good hedge against de-dollarization and declining confidence in the U.S. Treasury market."

The report also pointed out:

"While officials in the Biden administration have taken a relatively tough stance on digital assets, Trump said in a March interview that if elected, he would not crack down on Bitcoin or other digital assets."

Kendrick further posits that in the event of a Trump victory, foreign official buyers of US treasuries might display a preference for alternative financial assets such as Bitcoin, potentially driving its price upwards as a result.

Notably, the report suggests that under a Trump presidency, the imposition of import tariffs could prompt several large reserve managers to allocate funds towards Bitcoin by 2025.

The report added:

"In addition to the passive boost to BTC from de-dollarization, we would expect a second Trump administration to be actively supportive of BTC (and digital assets more broadly) via looser regulation and the approval of U.S. spot ETFs."

Trump, who held office from 2017 to 2021, is poised to potentially face off against the incumbent President Joe Biden in the upcoming November elections as the presumptive Republican candidate.

Crypto Traders Think Former First Lady Michelle Obama Can Win

In a curious twist of speculation, crypto traders are entertaining the notion that former First Lady Michelle Obama, despite not being a candidate or indicating any intention to vie for the presidency, holds comparable odds to declared candidate and cryptocurrency advocate Robert F. Kennedy Jr.

This unconventional sentiment has translated into significant wagers, with traders staking a staggering $8 million on Obama's potential candidacy through the decentralised prediction platform Polymarket.

While other names have also attracted substantial betting activity, Polymarket assigns Obama a 4% chance of success, placing her among the top contenders alongside candidates actively engaged in campaigning.

A director of communications for Obama's office explained:

“As former First Lady Michelle Obama has expressed several times over the years, she will not be running for president."

In a statement issued in March, representatives from Obama's office definitively ruled out any potential run for office in the 2024 elections.

Instead, they affirmed Obama's commitment to leveraging her political influence to support President Biden and Vice President Kamala Harris.

Interestingly, Harris has also emerged as a subject of speculation among crypto traders, garnering significant attention on platforms like Polymarket.

With a substantial $4.4 million in wagers placed on her potential candidacy, traders assess her chances of succeeding her superior in November at 1%.

Kennedy on the other hand, who distanced himself from the Democratic Party in October, has garnered considerable attention within the crypto community, reflected in the $6.7 million wagered on his prospects via Polymarket.

His alignment with crypto extends to bold proposals, ranging from advocating for backing the US dollar with Bitcoin to advocating for blockchain adoption to enhance government accountability by putting the entire US budget on the blockchain.

However, despite his crypto-friendly stance, traditional political polling tracked by The Hill paints a different picture.

Kennedy's popularity among regular voters appears to be waning as he endeavours to challenge established party candidates such as President Biden and Former President Donald Trump.

According to The Hill, Kennedy commands the support of approximately 8.5% of voters, with Trump declining to engage in a debate with him, dismissing him as "not a serious candidate."

Will Crypto Wield More Influence in the Upcoming US Elections?

The upcoming US general election on 5 November holds immense significance as it will determine the occupants of all 435 seats in the House of Representatives, 34 seats in the Senate, and ultimately, the presidency.

In addition, the burgeoning influence of cryptocurrency within the political landscape appears poised for continued expansion.

With significant financial backing and growing enthusiasm from both candidates and voters alike, the crypto support camp is positioned to wield even greater influence in shaping policy discussions and electoral outcomes.

As digital currencies continue to permeate mainstream consciousness and demonstrate their potential to drive innovation and economic growth, it is increasingly evident that their presence in the political arena is not merely a passing trend, but a force to be reckoned with.