In a significant turn of events, the 2024 U.S. elections have ushered in what many are calling the most pro-crypto Congress in history.
The significant shift in political dynamics is largely due to the substantial financial support from the cryptocurrency industry, which has strategically funded political campaigns to foster a legislative environment favourable to digital assets.
Political Action Committees
Recognising the existential threat of strict regulations, the cryptocurrency industry has deployed unprecedented resources to sway election outcomes. Data from the Federal Election Commission reveals that crypto-related Political Action Committees (PACs) and other industry groups have raised over $245 million. These funds were channeled to endorse candidates favourable to the industry’s interests and to challenge those critical of it.
Money talked
A prominent example is Bernie Moreno’s election to the U.S. Senate. Moreno, a former car salesman with minimal political experience, succeeded in defeating Democratic incumbent Senator Sherrod Brown, a known critic of the cryptocurrency industry. Moreno’s campaign was bolstered by an impressive $40 million from the cryptocurrency sector, underscoring the industry’s commitment to influencing legislative representation.
Powerful crypto lobby
The crypto lobby’s success is credited to its tactical approach, which extends beyond post-election lobbying to active involvement in the electoral process. This strategy included targeting pivotal states and backing candidates supportive or neutral toward the industry. Consequently, Congress now includes nearly 300 pro-crypto legislators, granting the sector substantial sway over legislative priorities.
The ramifications of this development are significant. With a Congress inclined toward cryptocurrency, the industry anticipates more accommodating regulations and clearer guidelines on matters like digital asset classification and the creation of regulatory sandboxes. This shift could be a catalyst for innovation and expansion within the cryptocurrency domain.
Concerns
This development has also sparked concerns regarding the impact of money on politics. Critics contend that the cryptocurrency industry’s electoral success highlights the urgency for campaign finance reform to curb the potential of industries to purchase political sway. They caution that such tendencies could compromise the democratic process and result in policies that prioritise special interests above the common welfare.
As the newly elected Congress assumes power, attention is focused on its approach to the intricate domain of cryptocurrency regulation. The ensuing months are pivotal in deciding if the industry’s political contributions will yield substantial advantages for the cryptocurrency sector and its participants.
Whichever way you package this, for or against – money buys political influence. The bias is obvious. It likely will be a bad thing in the long-term. Let’s hope it helps the people and not just the profits of big business.
We’ll see.
And don’t forget, the biggest tech and business influence in the new U.S. government (to be) just happens to be the richest person in the world, Elon Musk. He’s in charge of the newly announced Department of Government Efficiency – DOGE.
Business and not just money is in charge of the U.S. government with very few obstacles in its way!
This ‘influential’ purchase is big!