Crypto Pours $26M Into US Political Campaigns Through Q1 ’22

Cryptocurrency executives are banking on U.S. politics more than many industrial stalwarts, a report said, with political donations from crypto going beyond $26 million during 2021 and the first three months of 2022.

The cash has gone beyond spending by internet giants, drug makers and the defense industry.

And with the fresh influx, it has given more money for candidates going into this year’s Congress elections.

This comes as several issues related to the crypto sphere have been in the news, including regulating virtual tokens.

While crypto is not as divisive as some issues, the election could spark significant changes for the industry. The new Congress could weigh in with new laws for the asset class, and efforts by government agencies might look into consumer protections, or a Fed-backed digital dollar might gain traction.

Donations from those working in digital assets hit $26.3 million from January 2021 through last  March, according to the Federal Election Commission, indicating a large increase from the sub-$500,000 the industry gave the same period during the 2020 election.

The roster of crypto donors is expected to grow by November with this year’s midterm elections.

The biggest spender is Sam Bankman-Fried, the billionaire co-founder of the FTX exchange, who contributed $16 million just in April this year after also being responsible for most of crypto’s giving in the first quarter.

See also: Tech Pros Join Academia to Counter Crypto Lobbying on Capitol Hill

Crypto’s opponents haven’t been idle. PYMNTS wrote that a group of tech experts and academics wrote to Senate leaders to attack the industry and blockchain technology.

“We urge you to resist pressure from digital asset industry financiers, lobbyists and boosters to create a regulatory safe haven for these risky, flawed and unproven digital financial instruments,” read a letter to Senate Majority Leader Charles Schumer, D-N.Y., Senate Minority Leader Mitch McConnell, R-Ky., and Sens. Pat Toomey, R-Pa., and Ron Wyden, D-Ore., leaders on the Senate Finance Committee.