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A16z Boosts Crypto’s Election Fund by Another $25M to Seek Friendly Congress

May 29, 2024
    A16z and Ripple have now each plowed nearly $50 million into the industry’s shared Fairshake PAC.The political action committee’s has so far supported several crypto-friendly winners in congressional primaries, often flooding the local markets with significant advertising dollars.
As a researcher with a background in politics and technology, I find the recent developments surrounding the Fairshake PAC and its significant donations from industry heavyweights Andreessen Horowitz (a16z) and Ripple truly intriguing. The $136 million raised by these companies places them amongst the top campaign contributors in the U.S., rivaling major industries such as oil and gas or healthcare.Andreas Horowitz’s (a16z) committee received a $25 million contribution, as stated in a recent announcement from the firm. This significant donation brings the total amount given by key players in the crypto industry to approximately $136 million. As a result, the sector could now join the ranks of major campaign donors.
At the upcoming Consensus 2024 conference by CoinDesk, Chris Dixon, head of a16z Crypto, was poised to speak. Simultaneously, a representative confirmed that a16z had made another significant donation to Fairshake PAC. Consequently, a16z and Ripple now stand on par as major supporters of Fairshake and its related entities. Each company has contributed close to $50 million, with Coinbase Inc. being the next substantial contributor.

Based on the data from OpenSecrets.org, if we consider Marc Andreessen and Ben Horowitz of a16z as individual donors instead of the firm itself, their contributions would place them among the top 10 largest campaign contributors in the United States according to the current Federal Election Commission records.

Expert: These groups, including Fairshake, Defend American Jobs (for Republicans), and Protect Progress (for Democrats), have collectively poured large sums of money into specific congressional campaigns. Favored candidates from both sides of the aisle have received significant funding, often far surpassing their opponents. This financial backing has proven effective in primary elections, with several pro-crypto contenders emerging victorious from these early voting rounds.

According to its latest federal filings, a substantial amount of Fairshake’s funds is yet to be earmarked for spending. As super PACs, these committees contribute indirectly to campaigns by making “independent expenditures,” primarily used for buying ads without candidate approval. The largest expenditure from Fairshake went towards opposing Rep. Katie Porter (D-Calif.) in the Senate primary, which she unfortunately lost.

The 2024 election fundraising amounting to $136 million is a significant investment, surpassing many other major industries’ spending. Notably, this figure is currently dedicated to congressional races alone. In comparison to oil and gas producers and healthcare companies, this expenditure ranks high. Furthermore, in the broader category of investment firms, the leading crypto contributors emerge as among the top 10 substantial donors, according to OpenSecrets.org.

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2024-05-30 18:53