SBF reveals he donated to Republicans & Democrats as lobbying by crypto firms continues ahead of the midterms

In anticipation of the US midterm elections, the cryptocurrency industry has continued to spend politically to protect itself from a regulatory crackdown by a more receptive Congress.

Currently, many digital asset companies and executives support Political Action Committee including GMI PAC. Its biggest contributors include his FTX Trading Ltd. chief.

According to donations to the campaign, FTX Trading Ltd. became the third largest source of funding behind Democratic mega-donor George Soros and cardboard box maker Uline. donation Also provided separately by FTX CEO Sam Bankman Fried (SBF).

According to SBF, he supports candidates to prevent pandemics and support unauthorized fundraising.

1) I was a significant donor in both the D and R primaries.

Support constructive candidates across the aisle to prevent a pandemic and bring a bipartisan vibe to DC.

And work with them to support permissionless finance.

—SBF (@SBF_FTX) November 5, 2022

Possible Reasons for Political Contributions

Authorities are increasingly scrutinizing cryptocurrency issuers and lending platforms, claiming they are not complying with money laundering laws designed to protect investors. In recent years, the Securities and Exchange Commission (SEC) has taken nearly 100 enforcement actions against cryptocurrency entities.

But while pollsters predict the Senate and House will be retaken by Republicans, the White House will remain democratic for at least two more years. report From The Wall Street Journal.

Crypto enthusiasts may welcome a Republican majority as Republicans are often the most ardent supporters, pushing lawmakers to introduce more legislation than the industry has demanded. Congress will likely put pressure on agencies such as the SEC to moderate the aggressive approach it has taken to cryptocurrency companies.

reduction of political funds

Leading up to the Nov. 8 midterm elections, crypto executives cut back on political donations following the crash of digital currencies such as Bitcoin and Ether.

It is common for donors to give more money to campaigns and political committees in Q3. However, the cryptocurrency firm said he had donated less than $5 million each month since July, and his $3.9 million in September was down 63% from his $10.4 million in June. report From Bloomberg.

sauce: Bloomberg: Federal Election Commission filings with data available through October 19

However, the research team open secretIt tracks political contributions.

Additionally, the industry spent $15 million on lobbying in the first nine months of the year. This is more than the last eight years. In this regard, the sector has outpaced some pharmaceutical companies and defense contractors for much of his two-year election cycle.

Amid ongoing lobbying, lawmakers from both parties have introduced bills that the crypto industry supports.