In his victory address, Donald Trump acknowledged tech mogul Elon Musk as one of the night’s major winners. This year, the crypto industry spent over $130 million on election advertisements promoting its preferred candidates. The massive financial push came primarily from Fairshake, a crypto super PAC, alongside its affiliated groups, Protect Progress and Defend American Jobs. Together, these groups spent approximately $135 million, with backing from industry giants like Coinbase, Ripple, and venture capital firm Andreessen Horowitz. Their goal is to support candidates open to lighter regulations for digital assets.
The results were substantial for the crypto industry. A Stand With Crypto tracker reported that out of the congressional candidates supported by the crypto lobby, 253 pro-crypto candidates were elected to the House, compared to only 115 anti-crypto candidates. In the Senate, 16 pro-crypto candidates emerged victorious against 12 opponents. This shifted the balance in Congress, making it one of the most pro-crypto in history.
As a strategic move, the crypto industry spent over $130 million on election campaigns. In a high-stakes race for the U.S. Senate in Ohio, Republican candidate Bernie Moreno received a significant boost just before Election Day- $40 million from the cryptocurrency sector. This large sum fueled ads throughout Ohio, showcasing the industry’s powerful campaign to sway multiple congressional races across the nation. Moreno, a vocal crypto supporter, defeated incumbent Sen. Sherrod Brown, a Democrat known for his strong stance on crypto regulations.
Legislation and the SEC in Focus
Crypto leaders hope the newly elected Congress will ease restrictions and reduce the Securities and Exchange Commission’s power, a federal body that has enforced stringent measures on crypto firms. Coinbase’s chief legal officer Paul Grewal emphasized the election as a “crypto win,” seeing it as a chance to create favorable legislation.
Despite not backing any presidential candidate, the crypto industry’s influence grew significantly during this election cycle. The Biden administration has long been critical of the crypto space, with President-elect Donald Trump, a past crypto skeptic, now pledging to support the industry. Trump, who appeared at a Bitcoin conference earlier this year, even launched his own crypto venture.
Experts note that the crypto industry spent over $130 million on election support. The crypto industry learned from previous missteps. In 2022, FTX founder Sam Bankman-Fried led a similar campaign, which ended disastrously after FTX’s collapse and Bankman-Fried’s indictment. This setback did not deter the industry, which continued to advocate for reduced SEC oversight.
Fairshake ran one of the industry’s most aggressive campaigns yet, funding ads against crypto opponents like Democratic Senate candidate Katie Porter in California. Porter lost in the primaries, leaving room for pro-crypto candidate Adam Schiff. This early success influenced crypto skeptics nationwide, including Sen. Jon Tester, who later supported a pro-crypto bill in the Senate.
Elon Musk’s Investment
Musk, who invested over $130 million to bolster conservative causes, received high praise from Trump, who commended SpaceX and Starlink. Trump pledged to support American “super geniuses” and announced plans to create a “government efficiency” position, specifically crafted for Musk.
Musk’s relationship with Trump could open new opportunities for federal contracts. SpaceX and Tesla have already accumulated around $15.4 billion in government deals over the last decade. Trump’s promise to ease regulatory measures could benefit Musk’s ventures, allowing faster progress and fewer restrictions.
SpaceX and the Federal Aviation Administration (FAA) have clashed frequently. Recently, Musk criticized FAA Chief Michael Whitaker for imposing fines on SpaceX over launch violations. Musk’s vision includes creating a government body focused on efficiency that would relax these constraints. Starlink, SpaceX’s satellite internet provider, may also see regulatory changes if Trump appoints a Republican FCC head. A potential shift in leadership could restore the $885 million in subsidies Starlink lost in 2022. Trump has even suggested integrating Starlink’s services into rural broadband initiatives, a move that could significantly increase its revenue.
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