The US Election Concludes: The Secret Beneficiaries in the Encryption Industry Emerge

On November 6, 2024, the United States witnessed a dramatic presidential election. With Trump, known as a "cryptocurrency supporter", successfully elected, cryptocurrency seems to have officially entered the core circle of the White House. Meanwhile, the price of Bitcoin broke through the $75,000 barrier, setting a new historical high. Behind this series of events, hidden interest groups and beneficiaries are gradually coming to light.

Encryption Lobbying: Huge Investments from Congressmen to the President

In May of this year, the U.S. House of Representatives passed the Financial Innovation and Technology Act of the 21st Century (FIT21) with a high vote of 279 to 136. This Republican-led bill aims to establish a regulatory framework for digital assets and promote the development of the encryption industry. The passage of the bill is largely attributed to the significant campaign expenditures of the encryption community.

Data shows that political action committees (PACs) supporting encryption have invested over $133 million in elections, influencing 51 campaigns. These PACs mainly support candidates who promise not to strictly regulate encryption. The three most active PACs are Fairshake, Protect Progress, and Defend American Jobs.

The rise of these super PACs can be attributed to a 2010 Supreme Court ruling that allowed corporations and unions to make unlimited expenditures in political activities. Subsequent case law further established the legality of "super political action committees," enabling them to accept and spend unlimited contributions.

For example, Fairshake invested a large amount of money to support the campaigns of multiple candidates. Defend American Jobs invested over $40 million in the elections in Ohio to support Republican candidate Bernie Moreno. Protect Progress provided substantial financial support for the campaigns of several Democratic lawmakers.

The CEO of a well-known encryption trading platform recently stated in a media interview: "Regardless of the outcome of this election, this will be the most supportive Congress for cryptocurrency in our history."

Political Donations by Encryption Institutions

Through political donation data, we can glimpse the sources of funding behind the political stage. Trump's political action committee Trump 47 raised a total of $327.47 million in 2024. Among them, Winklevoss Capital Management, founded by a well-known encryption cryptocurrency exchange founder, donated approximately $2.366 million, ranking as the second-largest donor.

Another action committee, Right For America, raised a total of $68.46 million this year, including a $5 million donation from the founder of the well-known venture capital firm A16Z. It is worth noting that support from the encryption industry is not limited to the Republican Party; many donors do not have a clear party affiliation, and their goal is to elect politicians who are friendly to cryptocurrency.

On the institutional side, the three major cryptocurrency trading platforms together invested about $108 million. The A16Z also invested $45.2 million.

A report by the non-profit oversight organization Public Citizen shows that nearly half of the corporate money flowing into the election comes from the encryption industry.

Subsequent Impact: Who Will Benefit From This?

As the regulatory framework for cryptocurrencies in the United States gradually improves, leading exchanges, venture capital firms, and foundations have already made early arrangements. Among the donor lists of three major super PACs, in addition to well-known trading platforms and venture capital firms, some smaller institutions are also involved, which is worth noting for investors.

The game between cryptocurrency and regulation continues. Despite harboring the ideal of decentralization, the interaction between the encryption industry and regulatory bodies will still be a long and complex process.