Crypto is betting it all on the 2024 elections

“Crypto has spent a record $119 million in the 2024 federal elections, magnitudes more than it has ever spent before. This huge number means that crypto accounts for almost half of all corporate political contributions in this cycle. Its spending since 2010, totaling $129 million, puts the industry second only to fossil fuels, according to a report from the progressive consumer advocacy group Public Citizen.

“It’s already 15 percent of all known corporate contributions since the Citizens United ruling,” says Rick Claypool, a research director at Public Citizen who authored the report on crypto election spending, referring to the landmark 2010 Supreme Court decision that opened the floodgates for virtually unlimited corporate spending in elections through outside groups.

Crypto’s ballooning political war chest and voracious appetite to dangle money in front of lawmakers speaks to the power it has amassed over the past decade and a half, even as it has struggled to gain any real traction with the public.

Three-quarters of Americans who’ve heard of crypto aren’t confident in its safety and reliability, a 2023 Pew Research survey found, and only 7 percent of Americans used crypto last year, according to the Federal Reserve. Crypto’s reputation suffered in particular from the controversy surrounding crypto companies in the last few years, especially the catastrophic meltdown of FTX. Though the first cryptocurrency was launched in 2009, it still hasn’t penetrated as a mainstream payment method, with very few retailers allowing customers to pay directly with cryptocurrency. It remains mostly a vehicle for speculative investment.

Despite that — or because of it — crypto companies have redoubled their efforts to help elect pro-crypto politicians and lobby for policies that would boost the sector’s growth. The industry wants the influx of money it’s spending to send the clear message that the crypto craze isn’t over — and in fact, isn’t a craze at all, but the lasting future of finance. “Crypto is here to stay,” Paul Grewal, Coinbase’s chief legal officer, recently wrote in public comments regarding regulation.

The sector’s most strident champions want you to believe that it’s a key issue for voters in the upcoming election, right next to inflation and health care. The industry is shouting from the rooftops that politicians can’t ignore crypto — and trying its hardest to make sure we won’t be able to either.”

“After a rough few years of being walloped by scandals and government crackdowns, crypto is facing an existential crisis. There are already some patchwork regulations governing the world of digital currencies, but one key issue remains hotly debated: Which government agency should oversee them?

In the US, securities like stocks and bonds have to be registered with the Securities and Exchange Commission (SEC), which comes with a host of disclosure requirements and other rules to protect investors.

As far as the SEC is concerned, the law already puts most cryptocurrencies squarely under its purview, and the agency has been aggressively pursuing enforcement against crypto exchanges like Coinbase and Binance, alleging that they’re running unregistered securities exchanges. But the crypto industry doesn’t want to be regulated by the SEC — it wants to fall under the Commodity Futures Trading Commission (CFTC) instead.

“The CFTC is a much smaller agency with far fewer resources,” says Molly White, a crypto researcher and critic who has been tracking the industry’s political spending.”

“One major change this election cycle is how much more visible and vocal the Trump-supporting faction of crypto proponents has become. Cameron and Tyler Winklevoss, who founded the crypto exchange Gemini, tried to donate roughly $1 million worth of bitcoin each directly to the Trump campaign, apparently unaware it would exceed the FEC contribution limit. Venture capitalists Marc Andreessen and Ben Horowitz have both affirmed that they’re joining Team Trump too. Other backers include Jesse Powell, co-founder of the crypto exchange Kraken, and Charles Hoskinson, co-founder of the ethereum blockchain.

It’s worth noting that when Bankman-Fried was still the biggest face of crypto, he was known as a Democratic megadonor. We only found out later that he’d contributed roughly the same amount to Republicans through dark money groups.

Trump, for his part, was a harsh crypto critic in the past, but has recently done a 180, saying he would end Biden’s “war on crypto,” and that he would fire Gensler, the SEC chair. He even recently announced a family crypto project, run by the Trump Organization, called The DeFiant Ones — a play on “decentralized finance” — that would, according to Trump, help Americans who have been “squeezed by the big banks and financial elites.”

But crypto’s partisan inclinations are more complicated than simply supporting Republicans.

The industry’s spending is funneled mostly through the pro-crypto super PAC Fairshake, which has already spent $93.8 million this election cycle and is the second best-funded super PAC in the election, after Trump-backing Make America Great Again Inc. Fairshake’s backers include Coinbase, which has contributed a total of $50 million to the 2024 elections so far, and Ripple, a blockchain payment network that spent $49 million. (Both Coinbase and Ripple have faced SEC lawsuits.) Venture capital firm Andreessen Horowitz has also contributed $47 million to Fairshake.

Fairshake largely focuses on House and Senate races, and has been largely nonpartisan, supporting and opposing politicians of both parties based on their crypto stance.”

https://www.vox.com/money/371597/crypto-politics-spending-2024-elections-trump

Biden is out of the 2024 race. What happens to his campaign donations?

“The Biden campaign said it had $240 million in cash on hand earlier this month, compared to former President Donald Trump’s $331 million. Campaign finance rules put some limits on what Biden can do with that money now that he’s no longer running for president.
The money isn’t just in limbo, however. Though it’s not yet completely certain whether Harris will become the nominee — she’d need Biden’s delegates at the Democratic National Convention to assume the candidacy, though his endorsement certainly puts her ahead of any possible competition — she could access Biden’s funds more easily than another Democrat. And the campaign pot only seems to be growing: Major Democratic donors, some of whom had paused their contributions after Biden’s disastrous debate performance last month due to concerns about his candidacy, reportedly reopened their wallets after Biden’s announcement Sunday.

Biden and Harris already share funds in a campaign committee under campaign finance laws that allow the president and vice president to run together as one ticket, said Saurav Ghosh, the Campaign Legal Center’s director of federal campaign finance reform. If she were to remain on the ticket as the presidential nominee, “the new ticket would maintain access to all the funds in the campaign committee,” Ghosh added.

That would make Harris’s transition to the top of the ticket seamless — at least when it comes to the money.”

https://www.vox.com/joe-biden/361991/361991biden-campaign-funds-after-drops-out

Trump turns his legal woes into a campaign fundraising machine

“for his fundraising purposes, the trial may be a boon. Trump’s best fundraising days this year have been driven by his legal jeopardy, which his joint fundraising committee has worked to monetize. His appeals to supporters often reference his legal woes, and

“Soros-backed”: The GOP’s favorite attack on the man prosecuting Trump, explained

“Donald Trump’s outraged response to Manhattan District Attorney Alvin Bragg’s indictment of him contained the usual mix of bombast and self-pity, with a predictable dollop of conspiracy-mongering. One line of attack stood out in particular: He accused Bragg of being “hand-picked and funded by George Soros.”
Trump wasn’t alone. The alleged Bragg-Soros connection has been everywhere in the Republican response to the indictment, including in comments from Florida Gov. Ron DeSantis, Ohio Sen. J.D. Vance, and a host of other prominent Republicans and Fox News coverage. It often gets shorthanded into a two-word phrase: “Soros-backed.”

Soros, a nonagenarian Holocaust survivor and billionaire financier, is a longstanding hate figure among conservatives. Over the past two decades, elements of the right in both the United States and his native Hungary have engaged in a concerted campaign to turn Soros into a boogeyman — the shadowy power behind transatlantic liberalism.

Though Bragg has never been directly funded by Soros, the accusation of a link isn’t entirely out of whole cloth — Bragg’s 2021 campaign for district attorney does seem to have indirectly received some of his financial support. But the intensity of the accusation certainly doesn’t seem proportionate to the tenuousness of the connection.

To liberals, the Soros accusation smacks of nothing less than antisemitism. “Just replace ‘Soros-backed’ with ‘Jewy Jew Jewish Jewy Jew,’” the popular comedian John Fugelsang tweeted in response to DeSantis’s attack on Bragg. Naturally, conservatives have denied the charge and argued that liberals are just trying to suppress reasonable criticism of a prominent Democratic donor.

There is, of course, nothing wrong with criticizing Soros’s philanthropic work, especially his partisan donations to the Democratic Party. But it’s difficult to separate the criticisms from the context — and the last two decades of attacks on Soros have turned him into a stand-in for a certain kind of Jewish “rootless cosmopolitan” that allows politicians to appeal to antisemitism without having to do so explicitly.

In the Trump populist era, attacks on so-called “globalists” — a term long used on the extreme right as a euphemism for “Jews” — have become increasingly common on the mainstream right. The increasing mainstream flirtation with antisemitic stereotypes and rhetoric has made the subtext of the attacks on Soros harder and harder to deny.”

“It’s true that Soros supported pro-democracy activists and civil society groups in former communist states — but that doesn’t make him the “puppet master” secretly getting people out into the streets to demonstrate against dictators. The idea that a Jewish financier is secretly masterminding global events against the interests of rooted local conservatives — it doesn’t take a scholar of antisemitism to see what Beck was drawing on here.”

“When Trump and his allies tried to position the so-called “migrant caravan” as a major threat to America before the 2018 midterms, the president told reporters that “a lot of people say” Soros was behind it. You heard similar rhetoric from Donald Trump Jr. and Republicans in Congress.

This was a baseless lie, and an antisemitic one to boot. The idea that Jewish money is bringing in nonwhite immigrants to menace the United States is a staple of far-right rhetoric — one that had been voiced by a shooter who killed 11 Jews at a Pittsburgh synagogue in 2018.”

“Many more thoughtful conservatives have argued that Soros is a principal funder of the “progressive prosecutor” movement, a nationwide campaign to elect district attorneys who aim to try and tackle problems like mass incarceration by (for example) refusing to prosecute certain low-level crimes. Bragg is one such progressive prosecutor, and seems to be the beneficiary of Soros’s funding: Shortly after the group Color of Change pledged roughly $1 million to support Bragg, they received roughly $1 million in funding from Soros.”

“Conservative criticisms of Soros’s support of “progressive prosecutors” are not necessarily antisemitic. If what they were saying was “progressive prosecutors raise crime rates and it’s bad that Soros is supporting them,” that would be one thing.

But what they’re actually doing is claiming that Trump’s prosecution is illegitimate and politically motivated — and that support from Soros is proof of said illegitimacy. The same “puppet-master” implication is invoked (remember Trump’s words: “hand-picked”). And it beggars belief that these conservatives don’t know that the Trumpist faithful won’t fill in those conspiratorial (and yes, antisemitic) blanks.

So it’s certainly possible to criticize George Soros without being antisemitic in the abstract. But at this point, we know what a dog whistle from Donald Trump and his ilk sounds like, and it’s hard to ignore that the chorus of attacks on the Soros-Bragg connection hit those same notes.”

Biden’s Party Is Still Boosting Those ‘MAGA Republicans’ the President Warned Us About

“The ads may have taken different tacks, but all have the same emphasis: presenting moderate Republican candidates as less appealing to the party’s base. If Republican primary voters choose candidates further from the mainstream, then Democrats hope to have an easier time beating them in the general election. By now this is a familiar pattern: In states from Maryland to Pennsylvania to Michigan, Democrats have collectively spent tens of millions on ads painting Republican candidates as “too conservative” or “handpicked by Trump.”

It’s a bad idea in any context, but the tactic looks especially craven in light of President Joe Biden’s speech in Philadelphia earlier this month.

From Independence Hall, Biden warned that “Donald Trump and the MAGA Republicans represent an extremism that threatens the very foundations of our republic.” He said they “promote authoritarian leaders,” “fan the flames of political violence,” and are “committed…to destroying American democracy.” Opposing these forces constituted “a battle for the soul of this nation.”

But Biden’s warning rings hollow while his party is spending a fortune propping up MAGA Republican candidates, hoping to make them just electable enough for primary voters but not quite electable enough for the general public. It’s a considerable gamble that could easily backfire.”

How logging, a Nike founder, and the alt-right warped the Oregon governor’s race

“Oregon is known nationally for being solidly blue, but its internal politics are more nuanced. The biggest source of friction is in the state’s environmental politics, because outside blue Portland, the eastern area of the state is home to both old-growth forests and a large logging industry.
“Timber is to Oregon what coal is to West Virginia,” Pedery said. “There’s legacy logging money that funds all of our right-wing causes in the state.”

The timber industry’s power makes for more unusual politics than the typical left-right divide on climate change. You can find plenty of Democrats who, like Sen. Joe Manchin in West Virginia, are supported by an industry that opposes climate change policies.”

“Johnson trails far behind both Kotek and Drazan in polling. She’s endured in the race this long because she is also the best-funded candidate, thanks to the state’s richest man, Knight, the co-founder and chair emeritus of footwear giant Nike.

He has single-handedly flooded Johnson’s campaign with $3.75 million in cash, and another $2 million to a PAC dedicated to electing more Republicans to the Oregon legislature. In October, he contributed his first $1 million to Drazan’s campaign.

A third candidate’s presence, boosted by Knight’s cash, has upended all normal expectations for the race. In a “normal” cycle”

“as Johnson is a former Democrat, her candidacy is pulling away support that might otherwise go to Kotek. “There’s a real attempt to stop Democrats from defecting to Johnson,” said Horvick. If Kotek loses, it could be Knight’s money that’s to blame.”

“If Johnson’s presence does manage to tip the race to the Republican, the use of a third candidate to siphon off Democratic support could become a model in reliably blue states to reverse climate action. All Republicans would need is a deep-pocketed backer and a viable moderate or conservative Democrat.”

It was a great day in the Supreme Court for anyone who wants to bribe a lawmaker

“The case is Federal Election Commission v. Ted Cruz for Senate, and it involves a federal law intended to prevent campaign donors from putting money directly into the pockets of elected officials. Specifically, the law permits candidates to loan money to their own campaigns, but forbids the campaign from repaying more than $250,000 of that loan from funds raised after the election takes place.

Typically, federal law draws a sharp line between money donated to a campaign, which can only be spent on the election effort, and money given directly to a candidate, which is ordinarily not allowed. But loan repayments exist in a gray area between these two kinds of donations. Yes, money repaid to a candidate ostensibly just reimburses that candidate for money they fronted during the campaign. But any dollar given by donors to repay such loans still goes into the pocket of a former candidate who may very well be a powerful elected official by the time they receive the money.

Without a cap on loan repayments, elected officials with clever accountants could profit off of their donors. In 1998, for example, Rep. Grace Napolitano (D-CA) made a $150,000 loan to her campaign at 18 percent interest (though she later reduced that interest rate to 10 percent). By 2009, she’d reportedly raised $221,780 to repay that loan, meaning that she earned at least $71,000 in profits.

Thus, should this challenge to the repayment cap succeed — and it appears overwhelmingly likely to succeed — elected officials could potentially make enormous loans to their campaigns at high interest rates, and then use those loans as a vehicle to accept bribes from lobbyists and other donors who want to trade money for access to the official.”

Bloomberg to transfer $18 million to national Democrats’ 2020 battleground efforts

“Bloomberg’s contribution appears to rely on the campaign finance loophole allowing campaigns to transfer unlimited funds to party committees in an election year.

As an individual, Bloomberg is only allowed to contribute approximately $35,000 a year to the DNC. But he can transfer unlimited money to his own campaign, which in turn can transfer an unlimited amount of funding to the party.”