Ahead of the 2024 elections, there is a notable increase in lobbying activities from the crypto industry. Key players in the sector, including the Cedar Innovation Foundation, are making strategic moves to influence lawmakers and policies in Washington.
What Happened: According to a report by CNBC, Cedar Innovation Foundation, a nonprofit backed by the crypto industry, is intensifying its efforts to sway Congress. The group, a Delaware-incorporated 501(c)(4), has set up a mailing address near Washington, D.C., and initiated advertisements against at least one lawmaker seeking reelection.
Better Markets CEO Dennis Kelleher warns of a looming surge in crypto-funded campaigns.
“What we're going to see in 2024 is a massive ramp-up in crypto-funded ‘dark’ money campaigns against anybody who isn't a crypto shill,” he said.
Kelleher estimates the crypto industry could spend “hundreds and hundreds of millions of dollars” to counter lawmakers critical of the sector, emphasizing the potential impact on political representation.
Following a year plagued by scandals, the crypto industry is trying to regain footing. High-profile incidents included the fraud conviction of FTX founder Sam Bankman-Fried and a plea deal for Binance founder Changpeng Zhao. Crypto groups spent more than $18 million on lobbying in the previous year, according to an analysis by Reuters.
Coinbase Global Inc COIN is among the likely contributors to the heavily crypto-funded Cedar Innovation Foundation, which recently appointed lobbying firm Mindset Advocacy.
Cedar Innovation has actively utilized Meta Platforms Inc‘s META Facebook and Instagram ads since late last year, spending $27,000. The nonprofit’s campaign includes urging voters to call Senate Banking Committee Chairman Sherrod Brown (D-Ohio) and other critics to take on SEC Chair Gary Gensler. Sens. Elizabeth Warren (D-Mass.) and Roger Marshall (R-Kan) are also targeted.
"Anyone who knows my record knows I will never bow to special interests or industry pressure, no matter how well-funded by dark money from shady sources," said Brown, who is up for reelection this year. Cedar Innovation hopes policymakers will recognize the potential of crypto innovation for job creation. Despite the campaign, neither Sen. Brown nor his staff have heard from Cedar Innovation.
Why It Matters: The 2024 elections present a pivotal moment for the crypto industry, with the topic of cryptocurrencies becoming increasingly political. Ark Invest Founder Cathie Wood highlighted the importance of cryptocurrencies, such as Bitcoin BTC/USD, Dogecoin DOGE/USD and Ethereum ETH/USD, as an election issue.
This came after a recent survey in December showed that 73% of American voters believe presidential candidates need to be well-informed about innovative technologies like cryptocurrencies.
With the prospect of U.S. crypto regulations falling into place after the 2024 elections. The Cedar Innovation Foundation’s lobbying efforts are part of the broader industry’s push to shape favorable policy outcomes.
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