The US Election Concludes: The Hidden Drivers of the Crypto Assets Industry

On November 6, 2024, the United States witnessed a dramatic presidential election. Trump was successfully elected and is seen as a president who holds a friendly attitude towards Crypto Assets as he enters the White House. Meanwhile, the price of Bitcoin broke through the $75,000 barrier, reaching a new historical high. Behind this series of events lies a group of quietly driving forces.

Political Influence of the Crypto Assets Industry

On May 22, the U.S. House of Representatives passed the "21st Century Financial Innovation and Technology Act" with a significant majority of 279 to 136, aiming to establish a regulatory framework for digital assets and promote the development of the Crypto Assets industry. The passage of this bill is closely related to the enormous campaign spending by the Crypto Assets community directed at lawmakers.

According to statistics from a political fundraising data tracking platform, political action committees supporting Crypto Assets have invested over $133 million in elections, influencing 51 campaigns. The three main political action committees are Fairshake, Protect Progress, and Defend American Jobs.

The rise of these committees is attributed to a Supreme Court ruling in 2010 that allowed corporations and unions to make unlimited expenditures in political activities. A subsequent ruling further established the legality of "super political action committees," which can accept and disburse unlimited donations as long as they do not coordinate directly with candidates or parties.

Main Participants and Their Influence

Multiple Crypto Assets trading platforms and investment institutions invested a large amount of funds in this election. Among them, three trading platforms invested a total of approximately $108 million. A well-known venture capital firm also invested $45.2 million.

From the funding sources of Trump's political action committee Trump 47, a company founded by the founder of a crypto assets exchange is the second largest donor, contributing approximately $2.366 million.

Another action committee, Right For America, has raised a total of $68.46 million this year, with two founders from a well-known venture capital firm donating $5 million.

The Political Landscape of the Crypto Assets Industry

A recent report released by the non-profit watchdog organization Public Citizen shows that nearly half of the corporate funding flowing into the elections comes from the Crypto Assets industry.

The capital flows of multiple exchanges and investment institutions also show their active layout in the political field. These funds mainly flow to candidates who hold a friendly attitude towards Crypto Assets.

Future Outlook

With Trump's election, the regulatory framework for Crypto Assets in the United States is expected to gradually improve. Leading exchanges, venture capital firms, and foundations have already positioned themselves in this process. The donor lists of several super political action committees supporting Crypto Assets show that, in addition to some well-known large institutions, there are also some smaller participants actively involved.

Despite the cryptocurrency industry's ideal of decentralization, the tug-of-war with regulation will continue. The outcome of this election may have a profound impact on the future development of Crypto Assets.