The US Elections Conclude: The Hidden Forces and Potential Beneficiaries of the Encryption Industry

On November 6, 2024, the United States witnessed a historically significant presidential election. Dubbed the "encryption currency supporter," Trump was successfully elected, which may signal that the encryption currency industry will gain more influence in the White House. Meanwhile, the price of Bitcoin surpassed the $75,000 mark, setting a new historical high. In this dual shock of politics and finance, some interest groups and potential beneficiaries hidden behind the scenes are gradually coming to light.

Encryption Lobbying: The Financial Game from Legislators to the Presidency

On May 22 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 amend existing securities and commodities regulations to establish a regulatory framework for digital assets, in order to promote the development of the encryption industry.

The smooth passage of the bill is largely attributed to the substantial campaign support from the encryption community to lawmakers. Data from political fundraising tracking platforms show that political action committees supporting encryption have invested over $133 million in elections, affecting 51 campaigns. These funds are primarily used to support candidates who pledge not to impose strict regulations on encryption.

In this political funding game, three major political action committees played a key role: Fairshake, Protect Progress, and Defend American Jobs. The rise of these committees is attributable to a 2010 U.S. Supreme Court ruling that allowed corporations and unions to make unlimited expenditures in political activities.

For example, Fairshake invested over $10 million to support a California congressman running for the Senate, although he ultimately did not succeed. Defend American Jobs invested over $40 million in the Ohio elections to support the Republican candidate running for the Senate. Protect Progress also invested a large amount of money to support candidates who are friendly to encryption.

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

Analysis of Political Donations by Encryption Institutions

By analyzing political donation data, we can glimpse the sources of funding behind the political stage. Trump's political action committee raised a total of $327.47 million in 2024. Among them, a capital management company founded by the founder of a well-known encryption cryptocurrency exchange donated approximately $2.366 million, becoming the second-largest donor.

Another action committee supporting Trump 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 noteworthy that the support from the encryption industry is not limited to the Republican Party; many donors do not have a clear party affiliation, and their goal is to elect politicians who are friendly to cryptocurrency.

At the institutional level, most donations come from three major cryptocurrency exchanges, totaling approximately $108 million. A well-known venture capital firm also invested $45.2 million.

A recent report from a non-profit oversight organization indicates that nearly half of the corporate funds flowing into the elections come from the encryption industry. These funds are primarily directed towards candidates who have an open attitude towards encryption.

Future Outlook: Who Will Benefit?

With Trump's election, the regulatory framework for encryption in the United States is expected to gradually improve. In this process, leading exchanges, venture capital firms, and foundations have already made early arrangements. By analyzing the donor lists of three major super PACs, we can see some familiar faces, including well-known venture capital firms, large encryption exchanges, and some smaller but active investment institutions.

It is worth noting that a smaller-scale encryption investment company appears on the lists of multiple political action committees with relatively small donation amounts, and this strategy is also worth attention.

Despite the cryptocurrency industry harboring ideals of decentralization, it still needs to engage in long-term games and harmonization with traditional systems in the reality of political and regulatory environments. The outcome of this election may bring new opportunities for the cryptocurrency industry, but it also presents new challenges. In the future, how to build a reasonable regulatory framework while maintaining innovative vitality will be an important issue facing the industry.