Cryptocurrency firms poured over $134 million into the 2024 U.S. elections, sparking debates about their growing political influence and the potential risks to financial regulation. According to a report by the Center for Political Accountability (CPA), unchecked political spending from major crypto players threatens regulatory stability and public trust.

The report warns that these contributions could expose companies to legal and reputational risks. While crypto firms seek favorable policies, their increasing financial involvement in elections raises concerns about regulatory capture—where industry interests overshadow public welfare.

A major contributor to this political spending spree was Fairshake, a political action committee (PAC) backed by Coinbase, Ripple, and Andreessen Horowitz. The PAC alone funneled over $40 million into supporting pro-crypto candidates, influencing key congressional races to secure industry-friendly legislation.

The timing of these donations is particularly notable. Just before the first-ever White House Crypto Summit on March 7, former President Donald Trump signed an executive order to establish a Strategic Bitcoin Reserve, marking a historic shift in U.S. crypto policy.

Not everyone views this financial push as a threat. Some industry experts argue that such spending is essential to securing regulatory clarity, which could drive innovation and market confidence. Blockchain expert Anndy Lian believes that supporting pro-crypto candidates can reduce uncertainty, benefiting the broader financial landscape.

However, regulatory watchdogs remain skeptical. In August 2024, Public Citizen filed a complaint with the Federal Election Commission (FEC), accusing Coinbase of violating federal election laws through its donations to Fairshake. Despite potential legal hurdles, Coinbase has pledged another $25 million for the 2026 midterms.

This debate comes amid fresh controversy surrounding the collapse of the Libra (LIBRA) token, a memecoin endorsed by Argentine President Javier Milei. Accusations of insider fraud and a $4 billion market wipeout have intensified concerns over political entanglement with crypto, reinforcing fears that industry influence in government may lead to regulatory instability.