Will Crypto's Lobbying Push Pay Off?

Once a political afterthought, crypto has swiftly become a focal point in the 2024 Presidential Election.

And while there's certainly been plenty of grassroots energy powering this move, this election has also hosted unprecedented pro-crypto lobbying efforts backed by the industry's most powerful players.

Crypto has become the largest lobbying spender this cycle. Fairshake, which has raised over $200 million from major donors like Coinbase, Andreessen Horowitz, and Ripple, and similar groups have directed their substantial resources toward supporting political campaigns across party lines, all with one goal: helping pro-crypto candidates win. 

It's a major investment, but is it money well spent?

The People’s Perspective

Polling data reveals that Americans are increasingly optimistic about blockchain’s role in finance. Public education around crypto’s potential to boost financial inclusion is also making an impact. In a 2024 election poll, 48% of likely U.S. voters agreed that “financial innovations relying less on banks and more on automated technology will lead to a more equitable global economy.” The same poll also indicated a growing interest in crypto ownership and investment. 

Crypto’s growing role in the public discourse has undoubtedly contributed to these shifts in sentiment. While the movement, so far, has largely been grassroots and privately funded, it is assuring to see support begin flowing in from policymakers. Having positive policy and consumer protections in place will be essential to growing the public’s trust in this emerging industry.

The Current Political Outlook

So how is the political outlook actually shaping up? With crypto’s role in the political arena becoming more pronounced, both U.S. presidential candidates have been forced to take stances and address the industry directly.

Donald Trump, with his usual bold approach, has promised "to make America the Bitcoin capital of the planet" if elected. Although his ventures into crypto—including a DeFi project on Ethereum and Trump Card collectibles—have been underwhelming at times, his pro-crypto rhetoric has still drawn substantial support within the industry.

Meanwhile, Kamala Harris has a more complex relationship with the crypto community, having served as vice president during an era of intensified regulation alongside SEC Chair Gary Gensler. With Immutable becoming the latest company to be issued a Wells notice by the SEC, industry frustrations are at an all-time high. While the need for clear regulation is generally accepted, the SEC’s approach—demanding registration without offering a clear pathway—has felt punitive rather than productive. Stateside companies trying to work alongside the SEC have consistently been met with lawsuits rather than guidance.

Now, Harris is aiming to signal a shift, stating her intent to “encourage innovative technologies like AI and digital assets while protecting consumers and investors.” She also specifically mentioned protecting crypto investments for black Americans. While advocacy groups like Stand With Crypto take her at her word, many remain cautious, questioning whether this pivot is genuine or simply an attempt to appeal to a large voter base before the election.

A Sustainable Effort?

As crypto's lobbying footprint grows, many are questioning whether this money will truly elevate ideologically aligned thinkers in government, or simply pad the pockets of those willing to say the right things to reach donor quotas. There are certainly a number of major concerns being outlined as crypto's political lobbying power grows:

• Can we trust those lobbying on behalf of crypto to represent the interests of the broader space? While people may be more trusting of Coinbase, remember that not too long ago, it was SBF that was leading the charge in Washington for the industry. How do we ensure that the lobbyists representing the crypto industry's most powerful players (and now other financial giants like BlackRock) are voicing concerns that push crypto values forward not just the private interests of the companies cutting checks?
• Can we trust the political support we're bankrolling? Political lobbying may not often feel like the most efficient use of capital, but in a regulatory climate that has aggressively curtailed innovation in the space, it's offered a path forward. The lingering question is whether we're earning and elevating new crypto converts in Washington or just enticing the most ideologically flexible candidates?

Yet, as crypto gains political acceptance and lobbying money continues to pour in—shaping the views of Congress and key political figures—many question where crypto’s underlying philosophy fits into this effort.

Reflections

Extensive political lobbying does not feel completely aligned with an industry that is built on the premise of finding a better path forward for our financial and governance systems. So can we honestly still say that this is the best way forward?

It's a complex question, but here’s where I personally stand:

Crypto is not an opinionated technology. It doesn’t favor grassroots adopters over institutional ones. Crypto, therefore, isn’t inherently anti-establishment; it’s simply been embraced by many who hold those values. As Rep. Ritchie Torres wisely shared on Bankless, there’s something in crypto for every political leaning: for libertarians, a chance to gain greater freedom from government; for progressives, an opportunity to check corporate power; and for conservatives, a means to create more accessible free markets.

How we regulate this technology is crucial, but framing it as a partisan issue is counterproductive. Politicians need to see crypto for what it truly is: an unbiased technology stack with diverse use cases.

Ultimately, the hope is that all of this lobbying money helps legislators broaden their understanding of crypto and build awareness of its potential impact. I’m cautiously optimistic that this shift is happening—partly because the conversation around crypto is expanding and partly because lawmakers like Rep. Ro Khanna suggest that change is indeed taking place internally.

While the effects of crypto’s political spending may not be fully clear until January and beyond—when the next U.S. President is sworn in—I am hopeful that a new era for crypto can emerge, regardless of the election’s outcome. An era in which crypto is better understood, better regulated, and ultimately better positioned to serve the global populations who are already using it, curious about it, or even opposed to its existence.

Good luck, America. And don’t forget to vote!