Crypto Industry Channels Huge Donations into US Politics And This is Just The Beginning – Here's Why

Is the Crypto Industry About to Have Its Moment in the US Election?

The crypto world is holding its breath as the ongoing US election unfolds, with many investors viewing this as a critical juncture for the future of digital currencies in the country.

The outcome of this election could be pivotal, as it’s expected to have long-lasting implications for the sector’s ability to thrive and expand in the US.

Donald Trump VS Kamala Harris

If Republican candidate Donald Trump returns to the White House, he’s made it clear that he will support Bitcoin miners and the broader crypto community.

His pledge to back the industry has sparked hope among many investors who see this as a potential turning point.

On the other hand, while Democrat Kamala Harris has also shown signs of backing crypto, her support remains less defined, leaving the industry unsure of the exact terms under which any future policies might take shape.

What’s Next for Crypto After the Election?

Despite the election's potential significance, the crypto industry is not relying solely on the outcome.

It’s already looking towards the future, knowing that change won’t happen overnight.

Coinbase, the largest crypto exchange in the US, took a notable step earlier this year by moving certain policy-related expenses to its general and administrative budget, signalling that the company is preparing for a long haul.

Coinbase CEO Brian Armstrong emphasised this sentiment in a blog post last week, stating,

“We’re not slowing down post-election.”

Meanwhile, Coinbase has also made a substantial commitment to the political process.

On 1 August 2024, it announced a $25 million donation to the Fairshake PAC, aimed at supporting pro-crypto candidates in the 2026 midterm elections.

This was soon followed by venture capital firm a16z, which pledged more than $23 million to the same cause.

Clearly, the crypto industry is prepared to continue its lobbying efforts, regardless of the immediate election results.

Why Change Could Take Years Even With the Right Support

Even with political backing from both sides of the aisle, the reality is that enacting laws that benefit the crypto industry in the US could take years.

The industry is still waiting for comprehensive legislation on issues like market structure and stablecoins—topics that have yet to be addressed.

As Bobby Zagotta, CEO of Bitstamp USA, pointed out through an interview,

“They might recognise that any kind of codification of law in a complex area could take a fair amount of time and they want not to take the chance that it would stall out again.”

The crypto world is no stranger to this drawn-out legislative process.

For now, it seems the industry will have to keep investing heavily in politics to make sure their interests are represented.

In fact, a report by consumer advocacy group Public Citizen showed that crypto companies were the largest corporate political spenders in 2024, contributing 44% of all corporate donations during the year’s elections.

Crypto’s Political Influence – Just the Beginning?

Kristin Smith, CEO of the Blockchain Association, which represents the crypto industry, reflected on the changing landscape.

“This year marked a turning point for the crypto industry – with a vocal crypto advocate, an engaged crypto voter, and a mature and organised industry – but our efforts are just beginning,” she said.

Smith acknowledged that creating effective policies would take time, but she remained optimistic, stating that “smart policymaking is an art – not a science” and that the industry is preparing for the future with renewed confidence.

The election, while important, may just be the start of what could be a lengthy battle for the crypto industry in the US.

Bitcoin's Rise Amidst Election Results

Bitcoin (BTC) surged 5% in the early hours of Wednesday’s Asian trading session, climbing to touch $71,500 as initial results from key states filtered in.

Currently it is climbing to a new all-time high, hovering above $74,000, according to TradingView.

The cryptocurrency's price appears to be tracking Republican candidate Donald Trump's strong performance, with estimates showing him securing wins in Florida, Tennessee, Missouri, Alabama, and Oklahoma.

In contrast, Democrat Kamala Harris claimed victories in Massachusetts, Maryland, Rhode Island, and Connecticut.

The Crypto Market Reacts to Trump's Early Lead

The crypto market has mirrored Trump’s early success.

Alongside Bitcoin's spike, altcoins saw a rapid increase, adding more than $50 billion to the overall market capitalization since Tuesday.

Many crypto investors have shown a preference for Trump’s policies, especially his commitment to clearer crypto regulations and his plan to replace Securities & Exchange Commission (SEC) Chair Gary Gensler.

Polymarket Predicts Trump Victory as Odds Surge

On the betting platform Polymarket, the odds of a Trump victory surged to over 70% for the first time as the results rolled in.

Elon Musk, CEO of Tesla and SpaceX, had earlier predicted that Trump would have a commanding 70% lead over Harris in the elections.

Warren Triumphs Over Deaton in Massachusetts Senate Race

Meanwhile, in Massachusetts, Senator Elizabeth Warren defeated crypto advocate John E. Deaton to retain her Senate seat.

Warren, known for her anti-crypto stance, is a key member of the Senate Banking Committee that oversees the SEC.

She could become the committee’s Chair if Democrats retain control of the Senate.

According to Fox Business' Eleanor Terrett, her potential rise to this position would have significant implications for crypto regulations.