Cryptocurrency companies spent $134 million on U.S. election campaigns in 2024, according to a report by the Center for Political Accountability (CPA).

This has raised concerns about the industry’s influence on political processes and potential regulatory consequences.

“Companies making such contributions may aim to create a favorable regulatory environment, but these political donations further undermine public trust and expose firms to legal, reputational, and business risks that cannot be ignored,” the report states.

A significant portion of the funds was allocated through the Fairshake political action committee (PAC), supported by Coinbase, Ripple, and Andreessen Horowitz. Fairshake has provided over $40 million to candidates advocating pro-crypto policies.

Regulators have already taken note of the industry’s political activity. In August 2024, the nonprofit Public Citizen filed a complaint against Coinbase with the Federal Election Commission, alleging a violation of federal election finance laws.

Despite criticism, Coinbase later contributed another $25 million to Fairshake for the 2026 midterm elections.

“The stakes are too high to sit on the sidelines, which is why at Coinbase, we are proud to contribute,” the company stated.

Intergovernmental blockchain expert Andy Lian views these expenditures as necessary for regulatory clarity, which is critical for industry stability and growth.

“This will likely boost investor confidence by reducing uncertainty, as seen in the market sentiment improvement following the victories of pro-crypto candidates—such as Bitcoin’s post-election rally,” Lian noted.

Regarding “regulatory capture”, where large players dominate the industry, Lian sees this as a natural part of crypto’s evolution.

Debates over the role of digital assets in politics followed the collapse of the LIBRA memecoin, which was indirectly linked to Argentine President Javier Milei.

According to Lookonchain, some investors suffered major losses twice, with 86% of LIBRA traders collectively losing $251 million, as reported by Nansen.

After the scandal, over 100 fraud complaints were filed with government agencies, highlighting the risks of any executive branch endorsing unregulated financial assets.

On March 7, the first-ever White House crypto summit was held to discuss the U.S. government’s shifting approach to digital assets.