Crypto Political Donations Hit $190M, How Will Upcoming Elections Impact Industry?

The U.S. crypto industry has made unprecedented strides in political donations, reaching over $190 million in the 2024 election cycle. This surge marks a sharp contrast to the 2020 election, where crypto donations totaled just $15 million. Moreover, it marks a 94% jump from the 2022 midterms, where donations hit $98 million. James Delmore and the research firm Breadcrumbs attribute this dramatic increase to growing political interest in crypto as presidential candidates take pro-crypto stance.

Impact of Pro-Crypto Candidates On Political Donations

Former President Donald Trump and ally Robert F. Kennedy Jr. have significantly influenced the community with their strong pro-crypto stance. Trump, who recently released his fourth NFT edition. In addition, both Trump and RFK Jr. have promised to establish a strategic Bitcoin reserve.

Trump and Kennedy’s focus on blockchain and Bitcoin has attracted substantial attention. Hence, the crypto political donations surged as enthusiasts see this as an opportunity to ensure friendlier regulations. With Trump also pledging to remove SEC Chair Gary Gensler, a prominent critic of the crypto industry, the stakes have never been higher.

On the other side of the aisle, Kamala Harris, the Democratic nominee, has been more cautious but remains open to reform. Harris has floated the idea of a “crypto reset.” This move suggested that she may reverse the Biden administration’s tougher stance on crypto regulation.

However, she has yet to outline a clear, comprehensive crypto policy, leaving some uncertainty within the industry. Still, the idea of a reset has generated optimism among those in the space who felt that the regulatory environment has been overly hostile.

While Harris’s intentions are not as explicitly pro-crypto as Trump’s, her approach may nonetheless soften the regulatory crackdown. It could also help stabilize an industry that has been rattled by lawsuits and SEC crackdowns. Also, Tennessee Congressman John Rose introduced a landmark crypto bill on September 12, which seeks joint regulation by the SEC and the CFTC.

2024 Debates & Crypto Politics

The recent U.S. presidential debate highlighted the growing intersection between crypto and politics. Opinions remain divided, particularly after accusations that Harris received more favorable treatment from the media. Meanwhile Trump faced stricter scrutiny on his economic policies despite the surge in crypto political donations.

However, Trump’s vocal supporters within the crypto space were quick to defend him. Some claimed that mainstream media fact-checked him unfairly, while Harris received less pressure on financial matters.

Trump took to his social media platform, Truth Social, to declare victory in the debate. He stated, “Polls clearly show that I won the Debate against Comrade Kamala Harris, the Democrats’ Radical Left Candidate.” Trump’s post criticized Harris for calling for a rematch. This adds to the controversy surrounding the election’s handling of financial and crypto-related issues.

With the 2024 election nearing, crypto industry leaders are watching closely with political donations soaring. The influx of donations underscores just how much is at stake for the industry. With calls to overhaul the SEC, establish national crypto reserves, and set clearer regulatory frameworks, the upcoming elections could reshape the future of crypto in the U.S.