'Everyone's mad': A look inside crypto's internal conflict regarding the 2024 elections
Individuals within the crypto industry have differing opinions on the best ways to impact the elections for the White House and Congress.
TroibNews 
The influence of the cryptocurrency sector in U.S. politics is greater than ever before. However, a rift between the left and right factions within the industry is becoming apparent, particularly in relation to the upcoming presidential election and control of Congress.
Democratic representatives within the cryptocurrency field have expressed concerns that the industry is becoming overly aligned with the right, as leadership increasingly supports GOP presidential nominee Donald Trump. Trump has advocated for policies favorable to the digital asset industry. Conversely, Republican representatives are wary of aligning too closely with Democratic nominee Kamala Harris and supporting Democratic Congressional candidates, fearing it might alienate their longstanding GOP allies and yield little benefit in return. With the Biden administration having demonstrated skepticism towards cryptocurrency trading, the stance Harris might take remains uncertain.
This internal conflict has become public as the industry's super PACs, which have nearly $170 million at their disposal, start funding crucial races nationwide. Attempts are also being made by some within the industry to connect with Harris. Among noticeable shifts, Democratic megadonor Ron Conway exited the cryptocurrency super PAC network known as Fairshake after it decided to allocate millions to defeat Senator Sherrod Brown in Ohio. Frustration was also expressed by GOP lawmakers when Fairshake supported Democratic candidates Ruben Gallego and Elissa Slotkin in their Senate races.
"There's a tremendous amount of emotion right now," Blockchain Association CEO Kristin Smith noted. "There's an industry strategy, and then there's somebody's individual strategy — and those are sometimes maybe not fully aligned."
Sources close to the situation have stated that these tensions are complicating the industry's efforts to push for regulatory reforms in Congress—a task already complicated by electoral politics and limited legislative sessions.
“Since the [Ohio super PAC] announcement, it’s been a mess,” a congressional aide revealed. “Democrats are mad, Republicans are mad, everyone’s mad.”
The political division within the industry is notable, especially as even key figures from the now-defunct FTX have made substantial donations to both political parties.
"That's just a unique industry, and it's causing conflict," a lobbyist said, highlighting the diverse political affiliations within the sector.
High-profile political donors from the crypto world are becoming more openly vocal about their views. Marc Andreessen, for example, endorsed Trump as “the right choice” for the industry's future. Similarly, Gemini’s co-founders, Cameron and Tyler Winklevoss, each pledged $1 million to Trump’s campaign.
Jonathan Padilla pointed out the growing discontent on the left due to the pronounced conservative stance from influential CEOs and investors.
As the industry grapples with these internal divisions, its impact on bipartisan legislative progress, such as the crypto-friendly bills debated earlier in the year, is also feeling the strain.
Adding to the complexity, proposals like that of Senator JD Vance, which began circulation weeks before he was announced as Trump's running mate, find little support across party lines.
Some industry advocates suggest pausing further legislative efforts until potential Republican gains in the upcoming elections.
“If you think Donald Trump is going to win the election, and particularly if you think the Senate is likely to be under Republican control, why negotiate against yourself?” one lobbyist reasoned.
Yet, Democratic lobbyists and legislators consider this heavy leaning towards the GOP shortsighted, as they try to engage with the Harris campaign in hopes of more supportive policies.
“Crypto advocates who are also reaching out to Harris don't believe in putting all the eggs in one basket or in one party,” Sheila Warren stated.
These developments come as Fairshake announced a $12 million initiative to support Brown’s opponent Bernie Moreno, which has raised concerns among Democrats like Rep. Wiley Nickel about sustaining bipartisan cooperation.
“It's naive to hold out hope for Democrats,” stated Senator Cynthia Lummis, a Wyoming Republican and notable crypto supporter, questioning Harris’ commitment to the industry.
As the election approaches, tensions continue to mount both within the crypto industry and between the industry and the political spectrum it seeks to influence.
Declan Harty and Jasper Goodman contributed to this report.
Sanya Singh for TROIB News
Democratic representatives within the cryptocurrency field have expressed concerns that the industry is becoming overly aligned with the right, as leadership increasingly supports GOP presidential nominee Donald Trump. Trump has advocated for policies favorable to the digital asset industry. Conversely, Republican representatives are wary of aligning too closely with Democratic nominee Kamala Harris and supporting Democratic Congressional candidates, fearing it might alienate their longstanding GOP allies and yield little benefit in return. With the Biden administration having demonstrated skepticism towards cryptocurrency trading, the stance Harris might take remains uncertain.
This internal conflict has become public as the industry's super PACs, which have nearly $170 million at their disposal, start funding crucial races nationwide. Attempts are also being made by some within the industry to connect with Harris. Among noticeable shifts, Democratic megadonor Ron Conway exited the cryptocurrency super PAC network known as Fairshake after it decided to allocate millions to defeat Senator Sherrod Brown in Ohio. Frustration was also expressed by GOP lawmakers when Fairshake supported Democratic candidates Ruben Gallego and Elissa Slotkin in their Senate races.
"There's a tremendous amount of emotion right now," Blockchain Association CEO Kristin Smith noted. "There's an industry strategy, and then there's somebody's individual strategy — and those are sometimes maybe not fully aligned."
Sources close to the situation have stated that these tensions are complicating the industry's efforts to push for regulatory reforms in Congress—a task already complicated by electoral politics and limited legislative sessions.
“Since the [Ohio super PAC] announcement, it’s been a mess,” a congressional aide revealed. “Democrats are mad, Republicans are mad, everyone’s mad.”
The political division within the industry is notable, especially as even key figures from the now-defunct FTX have made substantial donations to both political parties.
"That's just a unique industry, and it's causing conflict," a lobbyist said, highlighting the diverse political affiliations within the sector.
High-profile political donors from the crypto world are becoming more openly vocal about their views. Marc Andreessen, for example, endorsed Trump as “the right choice” for the industry's future. Similarly, Gemini’s co-founders, Cameron and Tyler Winklevoss, each pledged $1 million to Trump’s campaign.
Jonathan Padilla pointed out the growing discontent on the left due to the pronounced conservative stance from influential CEOs and investors.
As the industry grapples with these internal divisions, its impact on bipartisan legislative progress, such as the crypto-friendly bills debated earlier in the year, is also feeling the strain.
Adding to the complexity, proposals like that of Senator JD Vance, which began circulation weeks before he was announced as Trump's running mate, find little support across party lines.
Some industry advocates suggest pausing further legislative efforts until potential Republican gains in the upcoming elections.
“If you think Donald Trump is going to win the election, and particularly if you think the Senate is likely to be under Republican control, why negotiate against yourself?” one lobbyist reasoned.
Yet, Democratic lobbyists and legislators consider this heavy leaning towards the GOP shortsighted, as they try to engage with the Harris campaign in hopes of more supportive policies.
“Crypto advocates who are also reaching out to Harris don't believe in putting all the eggs in one basket or in one party,” Sheila Warren stated.
These developments come as Fairshake announced a $12 million initiative to support Brown’s opponent Bernie Moreno, which has raised concerns among Democrats like Rep. Wiley Nickel about sustaining bipartisan cooperation.
“It's naive to hold out hope for Democrats,” stated Senator Cynthia Lummis, a Wyoming Republican and notable crypto supporter, questioning Harris’ commitment to the industry.
As the election approaches, tensions continue to mount both within the crypto industry and between the industry and the political spectrum it seeks to influence.
Declan Harty and Jasper Goodman contributed to this report.
Sanya Singh for TROIB News
