The recent $78 million injection of funds by the crypto industry into political avenues holds promise, marking a significant evolution in their presence within Washington, D.C. A decade ago, efforts like the Bitcoin Foundation initially aimed to engage with policymakers but ultimately met a scandalous demise. Today, the crypto sector stands as a substantial player in the capital, boasting financial prowess that allows it to wield influence, especially following the substantial contribution to three super PACs.
Super PACs, known for their robust advocacy capacities, are poised to utilize these funds, generously contributed by entities like Coinbase and Andreessen Horowitz, to support candidates vying for congressional and other political roles. However, a critical question looms: who will these donations ultimately support?
Past trends suggest that the crypto industry might throw its weight behind politicians simply for their affinity towards Bitcoin, disregarding their shortcomings in other realms. This has encompassed support for controversial figures such as El Salvador’s president, known for strong-arm tactics, and GOP candidate Vivek Ramaswamy, whose controversial remarks have raised eyebrows. Additionally, figures like Democratic representative Robert F. Kennedy Jr., known for promoting vaccine-related conspiracy theories, have received backing from within the crypto sphere.
Despite advocating for principles like freedom and democracy and striving to diminish the power of a flawed government, leaders within the crypto industry have paradoxically endorsed individuals like Kennedy or Ramaswamy—figures lacking substantial governance strategies. Perhaps, a more prudent approach for prominent figures within the crypto realm would involve delving into foundational political texts rather than solely relying on social media for guidance.
Furthermore, the strategy of supporting any candidate endorsing Bitcoin poses risks of channeling funds towards fringe contenders with minimal chances of electoral success. A more strategic approach would pivot towards endorsing “viable candidates” who align with the industry’s values—a cohort increasingly expanding across party lines.
The crypto industry’s significant financial campaign stands to succeed by championing a valid cause: safeguarding blockchain jobs and technology within the U.S., countering movements aiming to stifle crypto innovation led by groups like Elizabeth Warren’s faction. The upcoming 2024 election presents an opportunity for substantial progress, provided these funds are judiciously allocated, steering clear of backing inadequate candidates.
