Crypto industry outspends defense, pharma on political donations

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Hoping to influence regulations, cryptocurrency executives and startups are providing a fresh pool of financing for candidates heading into November’s congressional elections.

Crypto executives are now pouring more money into U.S. politics than many of America’s industrial stalwarts.

“The industry has been under so much scrutiny, and early next year stands to be a real inflection point in Washington,” said Eric Soufer, a political consultant with Tusk Strategies who leads the firm’s crypto and fintech practice. “It’s possible you’ll see a historic investment in this election season.”

Although the roster of crypto donors is expected to mushroom as the November elections draw closer, the biggest spender thus far is Sam Bankman-Fried, the billionaire co-founder of the FTX exchange. Flynn’s futility last month showed that all the spending won’t necessarily be enough to sway voters, particularly in crowded primaries focused on local issues. Soufer, the Tusk Strategies consultant, says crypto donors have a long way to go in terms of developing a cohesive strategy for getting the most out of their contributions.

“We weren’t prepared for COVID — it cost us tens of trillions of dollars and millions of lives — and we’re still not prepared for the next pandemic,” he said.

 

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