US Election Results Are Out: Behind-the-Scenes Players in the Encryption Industry Emerge

On November 6, 2024, the highly anticipated U.S. presidential election concluded. The victory of the new president may grant greater influence for the encryption industry in the White House. Meanwhile, the price of Bitcoin has surpassed the $75,000 mark, setting a new historical high. Behind this series of events, the participants and beneficiaries of the encryption industry are gradually coming to light.

Encryption Lobbying: The Financial Struggle from Congress to the Presidency

In May of this year, the U.S. House of Representatives passed the "21st Century Financial Innovation and Technology Act" with an overwhelming majority of 279 votes in favor and 136 votes against. 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 was largely due to the strong support from the encryption community for the legislators.

According to statistics from a political donation tracking platform, political action committees supporting encryption have invested over $133 million in elections, influencing 51 campaigns. These committees primarily support candidates who pledge not to overly regulate encryption. The three most active political action committees are Fairshake, Protect Progress, and Defend American Jobs.

The rise of these super political action committees is attributed to a Supreme Court ruling in 2010 that allowed corporations and unions to make unlimited expenditures in political activities. Subsequent related cases further established the legal status of "super political action committees", enabling them to accept and disburse unlimited donations as long as they do not coordinate directly with candidates or parties.

For example, Fairshake invested heavily in bipartisan candidates in the elections in California and New York. Defend American Jobs spent over $40 million supporting Republican candidates in the Senate election in Ohio. Protect Progress also invested a huge amount in the elections in Michigan and Arizona.

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

Political Donations by Encryption Institutions

Political donation data reveals the sources of funding behind the political stage. The political action committee of the newly elected president raised a total of $327.47 million in 2024. Among them, a company founded by the founder of a well-known 加密 currency exchange donated approximately $2.366 million, making it the second-largest donor.

Another action committee has raised a total of $68.46 million this year, which includes a $5 million donation from the founder of a well-known venture capital firm. It is worth noting that donations in the encryption industry are not limited to a single political party; many donors do not have a clear party affiliation, and their goal is to elect politicians who are friendly to cryptocurrency.

In terms of institutions, most of the donations came from three major cryptocurrency exchanges, totaling approximately $108 million. A well-known venture capital firm also invested $45.2 million.

A recent report released by a non-profit oversight organization shows that nearly half of the corporate funds flowing into the election come from the encryption industry.

Future Outlook: Who Will Benefit?

As the United States gradually improves its regulatory framework for encryption, various stakeholders have begun to position themselves. Leading exchanges, venture capital firms, and foundations have participated through various channels.

The donor lists of the three main super political action committees are worth paying attention to for investors. In addition to several well-known cryptocurrency companies, some smaller but active investment firms also appear on the donation lists of multiple political action committees, which may hint at their potential influence in the future regulatory landscape.

Although the cryptocurrency industry harbors the ideal of decentralization, the game of cat and mouse with regulation will continue. The road ahead is still full of challenges and opportunities.