In an attempt to influence the results in their favor, crypto companies and investors across the sector have been investing in electoral campaigns for the Republican and Democratic parties ahead of the midterm elections in the United States.
So far, donors affiliated with the super PACs are estimated to have contributed some $70 million to financing the campaigns of candidates from both parties. The sum far exceeds the lobbying expenses generated by issues related to matters of the defense or pharmaceuticals industries.
According to a report by Bloomberg, FTX Founder Sam Bankman-Fried is among the largest donors. The bold billionaire has previously made it clear that he is willing to invest up to $1 billion in the 2024 presidential election.
It is important to note, however, that funding from crypto donors is not given directly to legislative candidates for electoral campaigns; such fundraising is only done by independent spending committees, known as “Super PACs”.
These legal figures have the power to collect and organize sums of money from individuals and corporations, including unions and associations. These pooled funds can then be spent to promote a candidate, or rally against them on the other side.
This is the most prominent difference between such organizations and traditional PACs, which can donate money directly to the campaigns of candidates they support. Super PACs also cannot coordinate with candidates in terms of the expenses that may be incurred by their respective campaigns.
American crypto lobbyists have markedly increased their presence in Washington this year following the collapse of the TerraUSD stablecoin. As pressure mounts from politicians and regulators in the U.S. to install appropriate legal framework for cryptocurrencies, DeFi companies and investors have increased their outlays in an attempt to ensure the best outcome for the industry.
On the Flipside
One in five people surveyed by the business intelligence firm Morning Consult said they own cryptocurrencies or NFTs. Opinion research included in a report by venture capital firm Haun Ventures also found that “Neither party garners a majority of support from Web3 Voters for its approach to the technology.”
Why You Should Care
Find out more about the U.S. government’s approach to crypto:
GOP Representative Accuses White House of Delaying Stablecoin Legislation
Algorithmic Stablecoins Could Be Banned for Two Years, According to U.S. Bill
See original on DailyCoin
Source: Cryptocurrency - investing.com
