The 2022 midterm election cycle is the first cycle where the cryptocurrency industry has become a serious issue and influential force. It has become one of the main sources of political funding. Congress is expected to start writing rules and regulations that will govern the crypto coin industry, so crypto leaders and investors want politicians amenable to their interests.
The US election campaign fundraising is a new arena for an industry that distrusts the government and has no centralized control. The fight over the federal infrastructure bill last summer galvanized cryptanalysts and spurred new regulations for the industry from the IRS.
SuperPACs that are associated with the digital currency industry have spent more than $32 million on the 2022 primary races. Big checks for lobbying and individuals’ campaign donations to incumbents have been the biggest winners. Cyber industry insiders are using millions of dollars of their own money to boost their political clout.
It is rare to see so much spending on primaries by outside groups, according to Craig Holman, a lobbyist for Public Citizen, “What we’re seeing is a fundamental politicization of the cryptocurrency industry,” Holman said in an interview”.
Bitcoin Foundation
The industry quickly built its lobbying machines on Capitol Hill and hopes to build on that for the elections. According to the Chairman of the Bitcoin Association, the coin industry is proud to support elected officials who believe in the economic potential of the coin. Brock Pierce, the co-founder of EOS Alliance, Block.one, Blockchain Capital, remarked, “We are not shy about supporting what we value and that includes political giving.”
FTX
FTX founder Sam Bankman- Fried, who recently released his political donations this year, is one of the masterminds of the campaign to promote the industry and its own issues. Bankman-Fried has a philosophy of promoting a rationalist approach to philanthropy called effective altruism. The results have been mixed so far. The two pro-crypto Senate candidates have the backing of a billionaire and a tech billionaire, which has helped them win high-profile Republican primaries.
Election Primary Race Results Mixed So Far
In other races, donors and candidates have not performed as well as they could. Brad Sherman was the most vocal critic in the House of Representatives and subsequently easily defeated pro-crypto primary challengers in California. In Oregon’s Sixth District, a finance developer and an effective altruist who received millions of dollars in support from Bankman-Fried both fell short in the Democratic primary.
Engage Raise
Engage Raise, a new platform created to raise campaign funds through cryptocurrencies, launched in July. In an interview with CNBC, Martin Dobelle, CEO of Engage Labs, the parent company of Engage Raise, said “Candidates can use our platform to connect with the crypto and blockchain community via fundraising, events, and messaging”. According to Dobelle, Engage Raise raised nearly $1 million in pre-seed investments. Early investors include Al Reid, a founding partner of Calypso Investment Partners, and Raf Michalowski, the CEO of CoastFi.
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