U.S. Election Results Revealed: The Secret Beneficiaries of the Crypto Assets Industry Emerge

On November 6, 2024, the United States experienced a dramatic presidential election. The newly elected president is seen as friendly towards Crypto Assets, which may mark the formal entry of Crypto Assets into the White House decision-making circle. Meanwhile, the price of Bitcoin has surpassed the $75,000 mark, setting a new historical record. Behind this political struggle, some hidden interest groups and potential beneficiaries are gradually revealing themselves.

Crypto Assets Lobbying: The Flow of Funds from Legislators to the President

On May 22 this year, the U.S. House of Representatives passed the "21st Century Financial Innovation and Technology Act" with a high vote of 279 in favor and 136 against. This Republican-led bill aims to establish a regulatory framework for digital assets to promote the development of the Crypto Assets industry. The successful passage of the bill is largely attributed to the substantial campaign support provided by the Crypto Assets community to lawmakers.

Political Action Committees (PACs) play an important role in influencing congressional elections and the passage of legislation. According to statistics from a political fundraising data tracking platform, PACs that support Crypto Assets have invested over $133 million in elections, involving 51 campaigns, with the main goal of supporting candidates who commit not to impose strict regulations on Crypto Assets. The three most active PACs are Fairshake, Protect Progress, and Defend American Jobs.

The rise of these Super Political Action Committees originated from a Supreme Court ruling in 2010 that allowed corporations and unions to make unlimited expenditures in political activities. Subsequent judicial precedents further established the legal status of "Super Political Action Committees," enabling them to accept and spend unlimited donations as long as they do not coordinate directly with candidates or parties.

For example, Fairshake invested a significant amount of funds in elections in California and New York. Although the two candidates it supported lost in the primaries, the committee has redirected resources to support bipartisan candidates. In a high-cost election in Ohio, Defend American Jobs invested over $40 million to support the Republican candidate for Senate, which could impact the party balance in the Senate. Protect Progress also invested heavily in elections in Michigan and Arizona, supporting candidates who are friendly towards Crypto Assets.

A senior executive of a well-known crypto assets trading platform recently stated during a media interview that regardless of the outcome of this election, it will be the most supportive Congress for crypto assets in American history.

Political Donations by Crypto Institutions

By analyzing political donation data, we can glimpse the sources of funding behind the political stage. The political action committee of the newly elected president raised a total of $327.47 million in 2024. Among them, an investment company founded by the founder of a well-known digital asset exchange donated approximately $2.366 million, becoming the second largest donor.

Another action committee has raised a total of $68.46 million this year, which includes a $5 million donation from the founder of a well-known venture capital firm. It is worth noting that political donations in the encryption industry do not benefit a single political party; many donors do not have a clear party affiliation, and their goal is to elect politicians who are friendly to Crypto Assets.

In terms of institutions, most donations came from three major Crypto Assets trading platforms, totaling approximately $108 million. In addition, a well-known venture capital firm also invested $45.2 million.

A recent report shows that nearly half of the corporate funds flowing into the election come from the Crypto Assets industry. These funds are primarily directed towards candidates and committees that have an open attitude towards Crypto Assets.

Future Outlook: Who has already made their move in the game?

As the regulatory framework for Crypto Assets in the United States gradually improves, various stakeholders have begun to position themselves. Leading exchanges, venture capital firms, and foundations have long been involved through various channels. Among the donor lists of three major super political action committees, in addition to a few well-known Crypto Assets companies, there are also some smaller but active participants that investors should pay attention to.

The game between the Crypto Assets industry and regulation will continue. Despite the ideal of decentralization, the integration of Crypto Assets with the existing regulatory system remains full of challenges. In the future, we may see more industry participants influencing policy-making and promoting industry development through legitimate political donations and lobbying activities.