The Rise of Crypto in Politics: A Story of Money and Influence
Crypto’s Rise to Political Prominence: A Story of Money and Influence
In recent years, the world of cryptocurrency has seen its fair share of ups and downs. From a spectacular crash that embarrassed celebrities to a slow recovery in value, the crypto market has been a rollercoaster ride for investors. However, what has been most surprising is the sudden political salience of crypto and the bipartisan pandering that has followed.
What explains this shift in political attention towards cryptocurrency? The answer, it seems, lies in money. Campaign contributions from crypto businesses have been pouring into politics at an unprecedented speed and scale. In the current election cycle, nearly half of all corporate donations have come from crypto companies, a stark increase from previous years.
According to Public Citizen, crypto corporations have spent nearly $10 million on federal elections in 2020 and 2022 combined. In the current campaign, they have already spent almost 12 times as much, totaling $119 million. This massive outlay has made crypto corporations the second-largest contributor in total election-related spending since Citizens United, trailing only the fossil-fuel industry.
The influence of crypto lobbying and donations on politicians from both parties has been significant. The unresolved regulatory approach to crypto has raised the stakes of the debate, pushing politicians to pay lip service to an industry that promises financial separatism and a stateless libertarian future.
While this may seem like a lobbying success story, some see it as a symptom of systemic rot in American governance. Charles Duhigg, writing for The New Yorker, suggests that the influence of money in politics has made it nearly impossible for anyone other than billionaires to further their agendas.
As the debate over crypto regulation continues, the influence of money in politics will undoubtedly play a significant role. Whether this will lead to positive change or further entrench the power of the wealthy remains to be seen.