A network backed by crypto will finance two Republican candidates running for special elections on April 1 in Florida. The network consists of Fairshake, defends American Jobs, and protects progress. It is a reflection of growing crypto involvement in campaigns.
The superPACs have spent more than a million on advertising. State Sen. Randy Fine, running for Michael Waltz’s seat, will have a $1.16 million financed campaign. GOP candidate running for Matt Gaetz’s seat, Jimmy Patronis, will have $345,000 worth of support. Both candidates have former President Donald Trump’s endorsement. These political campaigns are backed by crypto investors and firms, including Andreessen Horowitz, Ripple, and Coinbase.
Crypto’s growing political influence
It has spent more than $130 million on the 2024 elections and also filled its coffers with $115 million for upcoming campaigns. Such financial support might give crypto firms a stronger policy-making influence. The pressure is coming as regulators are revisiting their stance on digital currencies. The Securities and Exchange Commission’s digital asset task force is conducting its first roundtable on regulation.
Crypto firms are lobbying for reforms that will facilitate increased adoption of blockchain technology into mainstream finance. Others, including Robinhood and Kraken, are already branching out beyond crypto. Kraken has recently acquired derivatives platform NinjaTrader for $1.5 billion as a move into mainstream finance. Robinhood has been promoting blockchain for real estate and stock trading.
There are growing tensions between crypto firms and Wall Street. Wall Street institutions are against the sudden changes that blockchain might bring. Wall Street institutions prefer traditional markets where exchanges, brokerages, and clearing agencies are separate. Crypto firms, however, consolidate these roles. These varying approaches drive arguments for future regulation. The SEC will have to decide whether to protect traditional financial establishments or adopt innovation.
Crypto’s political ascent and regulatory shifts
Coinbase’s policy head is hopeful that Trump’s administration is pro-innovation. The industry believes that it is better politically positioned today than at any point over the last few years.
The Federal Housing Finance Agency and Labor Department are also confronting policy changes with the current administration. The White House recently let go of key economic advisors, which has generated concern about future financial data accuracy.
These changes signal a broader realignment of regulatory agendas. With crypto players gaining traction politically, their attempts at financial system integration will also face resistance. Wall Street’s entrenched interests will not surrender without a fight. The outcome of Florida’s special elections may perhaps provide a glimpse into how much influence the crypto industry has gained on policy and regulation.
