A report out Wednesday takes aim at how giants of the cryptocurrency industry are using the 2010 Citizens United ruling by the U.S. Supreme Court, which opened the floodgates for dark money in political campaigns, to make a massive deregulatory push ahead of this year's pivotal election.
Based on Public Citizen research director Rick Claypool's analysis of federal election data from OpenSecrets, the consumer advocacy group accused the crypto industry of "exploiting" the Citizens United v. Federal Election Commission ruling "to an unprecedented degree, dwarfing direct corporate spending by Big Oil and other corporate sectors in the 2024 elections."
Claypool found that crypto companies have dumped over $119 million into the 2024 federal elections so far, mostly through super political action committees (PACs) focused on elevating candidates that back their industry and opposing any skeptics.
"Nearly half (48%) of all corporate money contributed during this year's elections ($248 million so far) came from crypto backers," the report notes. Koch Industries, the conglomerate of the infamous Koch brothers, "is a distant second place," having put $25 million toward Americans for Prosperity Action and $3.25 million toward electing Republicans to Congress.
"That cryptocurrency companies like Coinbase and Ripple are able to spend over a hundred million dollars to silence crypto's critics and elevate its backers embodies everything that is wrong with the Supreme Court's disastrous Citizens United decision."
Since Citizens United, there has been at least $884 million in known corporate contributions to elections. Already, crypto corporations' spending for the past three cycles amounts to 15% of that total—and 92% has been during this cycle. The industry now only trails fossil fuel companies in election-related spending in the wake of the 2010 ruling.
"That cryptocurrency companies like Coinbase and Ripple are able to spend over a hundred million dollars to silence crypto's critics and elevate its backers embodies everything that is wrong with the Supreme Court's disastrous Citizens United decision," Claypool said in a statement.
Claypool stressed that "corporations can't vote. But the sole reason crypto is a hot-button topic in this election cycle is that crypto businesses are spending eye-popping sums to make themselves impossible to ignore."
"All this spending is a concern not just because the crypto companies may be able to buy deregulation," he warned. "This direct spending by crypto corporations is shattering a long-standing norm—and is likely to set a precedent for vastly more direct spending by corporations in upcoming elections."
Much of the industry's money from this cycle—nearly $114 million—has gone to the sector's Fairshake PAC and its affiliates. The report details how the group intervened in two Democratic primaries:
When Fairshake and its affiliates spend money to influence races, either by attacking crypto skeptics or boosting crypto supporters, the ads don't mention crypto at all. The super PAC spent $10 million on ads against Rep. Katie Porter in California's Senate primary and $2 million against Rep. Jamaal Bowman in a primary contest in New York. Rather than criticizing candidates for not sufficiently supporting crypto, both attack campaigns smeared the candidates' using unflattering claims having nothing to do with crypto policy.
In Bowman's case, he was also targeted by the American Israel Public Affairs Committee (AIPAC) and its affiliates for his criticism of U.S. support for Israel's assault of the Gaza Strip. Another target of both pro-Israel and crypto groups was fellow progressive Rep. Cori Bush (D-Mo.), who lost her primary earlier this month.
Industry use of Fairshake is expected to continue through November. The report points out that "the super PAC recently pledged to spend $25 million backing 18 House candidates—nine Democrats and nine Republicans—in the general election."
The report also lays out how both major parties' presidential nominees—former Republican President Donald Trump and Democratic Vice President Kamala Harris—and their allies have been courting the industry this cycle:
- Donald Trump, who previously expressed skepticism toward the sector and whose Securities and Exchange Commission initiated tough enforcement against alleged crypto misconduct, has rebranded himself as the pro-crypto presidential candidate. Speaking at the Bitcoin Conference in July, Trump vowed to make the U.S. the "crypto capital of the planet and the bitcoin superpower of the world" and proposed the federal government hold a "strategic bitcoin reserve."
- Trump's running mate selection of Sen. JD Vance (R-Ohio), whose background in venture capital and crypto-friendly policies, is seen as another pro-crypto signal.
- Kamala Harris advisers, meanwhile, have reportedly reached out to crypto corporations to "reset."
- Senate Majority Leader Chuck Schumer (D-N.Y.) spoke at a "Crypto4Harris" virtual fundraiser in August, declaring: "Crypto is here to stay no matter what. So Congress must get it right... we all believe in the future of crypto." Sens. Kirsten Gillibrand (D-N.Y.) and Debbie Stabenow (D-Mich.) also participated.
The new Public Citizen report—which concludes with a call for a constitutional amendment to overturn Citizens United—was released a day after Reutersreported that before Vance joined the Republican ticket, "he co-founded a Silicon Valley-backed donor organization to finance right-wing news stories, voter turnout operations, and election polls."
"The existence of Rockbridge and Vance's link to it have been previously reported," the outlet detailed. "But three internal Rockbridge documents reviewed by Reuters and half a dozen sources familiar with the group reveal the scale of its ambitions, its roughly $75 million budget for 2024, and its role in seeking to influence November's presidential election."
"Rockbridge showcases how Trump's selection of Vance as his running mate could empower a new set of Republican businessmen: heavyweight tech investors who favor far-reaching deregulation," Reuters continued. "Many want to weaken the U.S. Securities and Exchange Commission, which regulates Wall Street, and reduce oversight of cryptocurrency and artificial intelligence."
Meanwhile, in remarks cheered by Bush, Sen. Bernie Sanders (I-Vt.) declared at the Democratic National Convention on Tuesday night that there is an urgent "need to get big money out of our political process."
"Billionaires in both parties should not be able to buy elections, including primary elections," he said. "For the sake of our democracy, we must overturn the disastrous Citizens United Supreme Court decision and move toward public funding of elections."
OpenSecrets revealed last week that outside spending during the current election cycle has hit a record $1 billion.
