Crypto firms emerge as top spenders this election

Crypto currency companies have been pumping lots of money into 2024 federal elections — more than $119 million so far, or almost half of corporate money given during elections this year, according to consumer advocacy group Public Citizen.

The influx in contributions shows the crypto currency industry is reaching a pivotal point in trying to influence policy, according to Leonard Kostovetsky, an associate professor at the Zicklin School of Business at Baruch College.

“The crypto industry is very new so a lot of the regulations around it are up in the air,” he said.

So, while lawmakers are still figuring out how tough to be on crypto, “it’s really important for them to kind of strike while it’s early and make sure that the regulations are the way that they want them to be,” said Kostovetsky.

Crypto has reached a critical stage we’ve seen before, noted David Primo, a professor of political science and business administration at the University of Rochester.

“Where initially companies were not really involved politically, and then all of a sudden they realized that, ‘Hey, it turns out that Washington really matters a lot, and we need to be involved,’” he said.

While crypto may be making a big splash with its contributions, Primo said there are limits to the effects of this political spending: “These kinds of contributions are much more about signaling that you are an interested party in the policy process. So at best, it gets your foot in the door for a meeting let’s say.”

While campaign contributions get lots of attention, he added that lobbying is where corporations have more power to shape policy.