Many people say that AIPAC— with its network of other, smaller pro-genocide committees— is the most pernicious of the PACs funneling money into electoral politics this cycle. I’m not going to argue against that. I do, however, want to remind everyone to not take their eyes off the crypto-criminal PACs, which plan to spend hundreds of millions of dollars on electing their allies and punishing their enemies this year. Sam Bankman Fried may be temporarily cooling his heels in prison rat the moment but his dream of owning enough members of Congress to control it is rapidly coming to fruition.
Although there are plenty of Democrats eager to sell their souls to the crypto onslaught, the criminal nature of the whole enterprise is a natural fit for Trump, the most transactional American politician in memory. Yesterday, CNN reported that “Despite cryptocurrency’s troubling recent history and his own past reservations, Trump has fully embraced the hype and hopes of the nascent industry. His campaign now accepts bitcoin donations— and has collected about $4 million worth, a source with knowledge of his fundraising said. He has attacked the Biden administration’s efforts to regulate the industry as a ‘war on crypto’ without acknowledging the massive fraud schemes that have shattered public confidence in digital currencies. And he has vowed as president to make it easier for cryptocurrency mining companies to operate in the United States… The industry, in turn, has embraced Trump. Its leaders and investors have donated millions of dollars to his campaign and aligned political committees. They are cheerleaders for his candidacy to their sizable online audiences and are now providing him a platform to speak directly to 20,000 of their most engaged followers expected at this year’s Bitcoin Conference... Leaders and champions of the industry have become increasingly political, helping to bankroll super PACs that have overwhelmingly supported Republicans over Democrats. ‘It’s time for the crypto army to send a message to Washington,’ Tyler Winklevoss wrote in a lengthy social media post endorsing Trump. ‘That attacking us is political suicide.’”
Before his unhinged, lunatic, fear-mongering speech/standup comedy routine to the big crypto-convention, CNBC reported that Trump would be raking in the big dough with a fundraiser where tickets topped out at “at $844,600. In June, BTC Inc. CEO David Bailey, who organized the conference, pledged to raise $100 million and turn out more than 5,000,000 voters for the Trump re-election effort, as the bitcoin sector increasingly turns to the Trump camp for support.”
While Trump spoke yesterday, the price of Bitcoin took a startling nosedive as it became clearer and clearer that he doesn't know what cryptocurrency is and didn't even bother to prepare for the address.
Trump taking the main stage to directly address the bitcoin community is the latest in a months-long campaign to appeal to the crypto contingent, including accepting donations in virtual tokens, pledging to end President Joe Biden’s “war on crypto,” and advocating that all future bitcoin be made in America. It is also quite the about-face by the Republican presidential nominee.
Trump very publicly dismissed bitcoin when he was in the White House. In July 2019, he said he was “not a fan” of bitcoin and other cryptocurrencies. He said that tokens aren’t money, that their value was “based on thin air,” and warned that unregulated crypto assets could help facilitate the drug trade, among “other illegal activity.”
“Bitcoin just seems like a scam,” he told Fox in a phone interview in 2021. “I don’t like it because it’s another currency competing against the dollar.”
“I want the dollar to be the currency of the world, that’s what I’ve always said,” continued Trump in his conversation with Fox.
But five years, a lost presidential election, and millions of dollars from the crypto lobby later, the Republican presidential nominee is now headlining the biggest bitcoin conference of the year in Nashville, which kicked off on Thursday.
Trump’s shift on Bitcoin comes as the Republican Party pledges to lift the red tape of the Biden-Harris administration, working to turn crypto regulation into a voting issue for November, especially as inflation consistently ranks as a top voter priority in polls.
… The recent thaw in Trump’s sentiment for the digital asset space has coincided with a sudden influx of interest and cash from the country’s top tech talent.
He has raised more than $4 million in a mix of cryptocurrencies, including bitcoin, ether, the U.S. dollar pegged stablecoin USDC, and various memecoins, with contributors hailing from 12 states, including a few battlegrounds.
Crypto billionaire twins and venture investors Tyler and Cameron Winklevoss led the charge, each contributing 15.57 bitcoin, or just over $1 million at the time of their donation, according to a filing with the Federal Election Commission— though they received a partial refund, because contributions surpassed the $844,600 limit.
There are a number of other venture capitalists who are pro-crypto, and they’ve pledged millions to the Trump campaign, as well.
Venture capitalists Marc Andreessen and Ben Horowitz told employees of Andreessen Horowitz that they plan to make significant donations to political action committees supporting Trump’s campaign. The partners of Sequoia Capital are backing Trump, as is venture investor David Sacks, who helped the former president raise $12 million at a fundraiser he hosted in his San Francisco home. The chief legal officers for centralized crypto exchange Coinbase and blockchain giant Ripple were both there.
These members of the tech elite are also heavily contributing to pro-crypto super PACs like Fairshake, which has raised more than $200 million dollars to elect pro-crypto candidates up and down the ballot, and on both sides of the aisle.
While the influx of crypto money is an existential threat to our economy in its own right, it's crucial to recognize the broader implications for democracy. The crypto industry is not just about digital currencies; it represents a new frontier in the battle between concentrated wealth and public interest. Greed-driven crypto billionaires, much like the tycoons and robber barons of other industries, are leveraging their financial power to shape political outcomes, prioritizing their interests over the needs of the general population. This concentration of wealth and influence threatens to undermine democratic processes and exacerbate economic inequality. Example: the environmental impact of crypto mining is staggering, consuming vast amounts of energy and contributing significantly to carbon emissions. Trump's promises to boost this industry stand in stark contrast to the urgent need for climate action, highlighting a blatant disregard for our planet's future in favor of corporate profits.
Progressive leaders, in contrast, have been advocating for strong regulations to protect consumers, promote financial transparency, and ensure that the digital currency market operates fairly. That’s why the crypto-titans overwhelmingly back Republicans (and, to a lesser extent, corrupt, conservative Democrats). Progressives recognize that unchecked crypto growth could lead to another financial crisis, akin to the 2008 meltdown, driven by speculative bubbles and lack of oversight. The Biden administration's efforts to regulate the industry are steps towards safeguarding the economy and protecting ordinary Americans from the volatility and fraud that have plagued the crypto market.
Moreover, the influence of the crypto industry on politics is part of a larger pattern of corporate overreach. Just as the fossil fuel industry has bought political influence to undermine environmental regulations, and Big Pharma has lobbied to keep drug prices high, the crypto elite are using their wealth to shape policy in their favor. This pattern of concentrated wealth dictating policy is antithetical to the principles of democracy and fairness, underscoring the urgent need for comprehensive campaign finance reform to curb the influence of all wealthy interests, ensuring that our political system serves the many, not the few.
Crypto is a scam but still better than the lottery if you’ve got some spare cash.