Cryptocurrency-backed PACs have been accused of swaying key elections by funding ads targeting lawmakers critical of the digital asset industry.
Political Influence of Crypto PACs
Cryptocurrency-backed political action committees (PACs) have raised concerns about their impact on the 2024 US elections. Representative Summer Lee of Pennsylvania voiced strong opposition to the influence of these crypto Super PACs during a virtual event hosted by Public Citizen and Americans for Financial Reform on October 24.
Crypto PACs Swaying Election Results
Lee criticized crypto PACs for spending heavily on media ads that aimed to remove candidates opposed to the cryptocurrency industry. She stated that these groups were using their financial power to “silence” politicians who sought to hold them accountable. In particular, they spent over $3 million on media buys targeting Representatives Cori Bush and Jamaal Bowman, contributing to their losses in the Democratic primaries.
Impact on Key Representatives
Representative Lee emphasized the unfair advantage that crypto PACs bring to the table, pointing out how they could easily outspend and outmaneuver grassroots campaigns. She added, “It’s about keeping regular people out and letting the big players take over, and crypto knows this.”
Focus on Specific Candidates
The Fairshake PAC, a major player in the political landscape, was particularly active in supporting candidates aligned with the crypto industry’s goals. They directed funds to oppose candidates like Bowman and Bush, while simultaneously supporting others such as California Representative Young Kim and Texas Representative Monica De La Cruz Hernandez.
Crypto PACs and the Bigger Picture
While some critics argue that the role of PACs in elections is problematic, others defend it as part of the democratic process. Lee Bratcher, president of the Texas Blockchain Council, noted at the Permissionless conference on October 10 that the involvement of crypto PACs was merely “a function of how democracy works.” He explained that educating elected officials requires funding and resources, and the crypto industry’s PACs were simply using their financial power to gain influence.
PAC Spending as Election Day Approaches
With the 2024 US elections nearing, crypto PACs like Fairshake and its affiliate, Defend American Jobs, continue to spend millions in support of specific candidates. According to filings with the Federal Election Commission, these PACs spent $1.3 million across five states to support congressional candidates. Another affiliate, Protect Progress, reported supporting candidates such as Virginia Representative Suhas Subramanyam and California Representative Rohit Khanna.
Wider Implications for US Elections
As the election approaches, the influence of crypto PACs is expected to continue growing. The presidential race between Kamala Harris and Donald Trump has also seen some involvement from crypto PACs, such as the Bitcoin Voter PAC, which supported Trump and Senate candidates in Texas and Pennsylvania.
Crypto PACs’ Role in Future Elections
As Election Day draws closer, concerns over the influence of crypto PACs will likely remain a point of discussion. While some view their involvement as necessary for promoting the interests of the cryptocurrency industry, others, like Representative Summer Lee, believe that these groups hold too much sway over the political process.
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