Cryptocurrency Firms Donated Record $134 Million on 2024 US Elections

Cryptocurrency companies spent $134 million on political campaigns during the 2024 US elections. A recent report from the Center for Political Accountability (CPA) revealed these record-breaking contributions. The goal behind the spending was to influence politicians and policies favorable to crypto companies.

Fairshake, a political action committee (PAC) backed by major crypto players like Coinbase, Ripple, and Andreessen Horowitz, was among the biggest spenders. The group alone spent more than $40 million supporting pro-crypto political candidates. Fairshake actively targeted key congressional races, seeking to form laws that favor digital assets. 

Crypto Firms Coinbase and Kraken’s Donated Millions of Dollars 

Two major crypto exchanges, Coinbase and Kraken, each donated $1 million to the Trump Inaugural Fund in January 2025. Shortly after these donations, the Securities and Exchange Commission (SEC) dropped lawsuits against both companies. Previously, the SEC had accused Coinbase and Kraken of operating illegally as unregistered securities exchanges. This development raised concerns among critics. They questioned whether these political contributions affected the SEC’s decision to dismiss the cases.

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Public Citizen Files Complaint Against Coinbase

The increased political spending by crypto firms has not gone unnoticed by regulators and advocacy groups. In August 2024, consumer advocacy group Public Citizen filed a formal complaint with the Federal Election Commission (FEC). The complaint alleges that Coinbase violated federal election law by contributing corporate funds to Fairshake and the Congressional Leadership Fund, despite being classified as a federal contractor. Federal contractors are prohibited from making political donations, adding further controversy to the industry’s political engagement.

Risks to Public Trust and Market Stability

Following the elections, the price of Bitcoin surged dramatically, briefly surpassing $100,000 per coin. However, this rise was short-lived. By March 2025, Bitcoin had dropped below $87,000. The CPA report suggests political spending might have influenced this market instability. Investors often react strongly to news about cryptocurrency regulation and political involvement. 

The CPA highlighted several risks associated with such political spending. Public perception is a major concern. People may view large donations as attempts by crypto firms to unfairly influence government decisions. Negative public opinion could damage consumer trust in cryptocurrency and slow down industry growth.

Additionally, political spending might attract greater scrutiny from regulators. If regulators suspect political contributions are tied to favorable treatment, they may impose tougher rules on the industry. Increased oversight could limit future growth opportunities for crypto businesses.

The CPA report also revealed weak oversight of political spending within crypto companies. Without strong internal controls, these firms risk unintended consequences. Poor oversight can lead to financial mismanagement, reputational harm, or conflicts of interest. The report recommends that crypto companies adopt stricter internal procedures to oversee political contributions.