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The rise of political influence in the encryption industry has leveraged $135 million to impact the U.S. elections.
The political influence of the encryption industry significantly increased in the 2024 US elections. According to reports, the industry invested approximately $135 million to support over 50 candidates, covering current and challenger members of both the Democratic and Republican parties. These candidates achieved remarkable results in the elections on November 5. As of Friday noon local time, all 48 candidates supported by the encryption industry's main political action committee declared victory. In the eight elections where votes have not yet been fully counted, the candidates supported by the committee are leading in all but three.
Interestingly, the campaigns and advertisements of these candidates hardly addressed the cryptocurrency industry or its regulatory concerns. However, their main campaign vehicle, Fairshake, has become the largest single-issue super PAC in history. Fairshake and two other related super PACs (Defend American Jobs and Protect Progress) have received funding support from industry giants.
A consumer rights protection organization pointed out that the political influence campaigns of the encryption industry have surpassed traditional corporate donors. Since the landmark Supreme Court ruling in 2010 that lifted restrictions on corporate political spending, this industry ranks second only to the fossil fuel industry in terms of total amount spent.
The encryption industry is now actively promoting its massive election expenditures and their results, viewing them as evidence of its emergence as a political force that cannot be ignored. This not only lays the groundwork for the next legislative session but also prepares for the 2026 midterm elections. This series of actions indicates that the encryption industry is gradually establishing its influence in the U.S. political arena and may play a larger role in future policy-making.