The influence of encryption funds in the US elections is prominent.

On November 6, 2024, a highly anticipated U.S. election concluded. The newly elected president is viewed as friendly towards encryption, which may signal that the encryption industry will gain more influence in U.S. politics. Meanwhile, the price of Bitcoin has surpassed the $75,000 mark, setting a new historical high. The interest groups and beneficiaries behind this series of events are also gradually coming to light.

Encryption Lobbying: Influence from Congressman to President

In May of this year, the U.S. House of Representatives passed the "21st Century Financial Innovation and Technology Act" with an overwhelming majority of 279 votes in favor and 136 votes against. This Republican-led bill aims to amend existing securities and commodities regulations to establish a regulatory framework for digital assets to promote the development of the encryption industry.

The passage of the bill is inseparable from the enormous campaign spending by the encryption community directed at lawmakers. Political donation data tracking platforms show that political action committees supporting cryptocurrency have invested over $133 million in elections, impacting 51 campaigns, with the primary goal of supporting candidates who promise not to impose strict regulations on encryption. The three most active political action committees are Fairshake, Protect Progress, and Defend American Jobs.

The rise of these super political action committees is attributed to a Supreme Court ruling in 2010 that allowed corporations and unions to spend unlimited amounts on political activities. Subsequent related rulings further established the legal status of "super political action committees," enabling them to accept and allocate unlimited contributions as long as they do not coordinate directly with candidates or parties.

For example, Fairshake invested significant funds in multiple elections in California and New York. Although some of the candidates it supported lost in the primaries, the committee has redirected its energy and funds to support bipartisan candidates. In the most expensive election in Ohio's history, Defend American Jobs spent over $40 million supporting Republican candidates for the Senate, potentially affecting the party balance in the Senate.

Protect Progress supports several Democratic candidates who have a friendly attitude towards encryption, including lawmakers who voted in favor of the "21st Century Financial Innovation and Technology Act."

Political Donations by Encryption Organizations

Through political donation data, we can get a glimpse of the funding sources behind the political stage. The founder of a well-known 加密 currency exchange is the second largest donor to an important political action committee, donating approximately $2.366 million. Another action committee received a donation of $5 million from the founder of a well-known venture capital firm.

On the institutional side, most of the donations came from three major cryptocurrency trading platforms, totaling approximately $108 million. A well-known venture capital firm also invested $45.2 million.

A recent report released by a non-profit oversight organization shows that nearly half of the corporate funding flowing into the elections comes from the encryption industry. Donations from various encryption companies have flowed to different political candidates, crossing party lines.

Future Outlook

As the regulatory framework for encryption in the United States gradually improves, leading exchanges, venture capitalists, and foundations have already made early arrangements. The donor lists of three major super political action committees include several well-known encryption companies and investment institutions.

It is worth noting that some smaller investment institutions also appear on the donation lists of multiple political action committees, indicating their strategic layout in terms of political influence.

Despite the cryptocurrency industry's ideal of decentralization, the tug-of-war with regulation will continue. In this game, who can gain more voice in the policy-making process will be one of the key factors in the future development of the industry.