In a high-stakes political gambit that has reshaped the crypto landscape, industry titans leveraged enormous campaign spending to notch major wins in the 2024 US elections – and are now reaping the rewards to the tune of billions in personal wealth.
Leading the charge was Coinbase CEO Brian Armstrong, whose exchange devoted a staggering $74 million to the crypto-focused super PAC Fairshake. That eye-popping sum represented the lion’s share of Coinbase’s $95 million in 2023 profits, underscoring the sheer magnitude of the industry’s political play.
The bet paid off in spades. In the aftermath of the crypto-friendly electoral sweep, Coinbase’s market cap ballooned by $21 billion virtually overnight. And Armstrong wasted no time cashing in, selling $437 million worth of Coinbase stock in a pre-programmed trading plan initiated immediately after the election – shares that were worth $129 million less just days prior.
I think it’s clear that Donald Trump embraced crypto and crypto embraced Donald Trump.
– Brad Garlinghouse, Ripple CEO
A Rising Tide of Crypto Wealth
Armstrong was hardly alone in his windfall. The post-election crypto surge lifted the fortunes of Fairshake’s other main backers as well:
- Ripple CEO Brad Garlinghouse, who holds a major stake in Ripple and a large trove of now-skyrocketing XRP tokens
- Andreessen Horowitz chiefs Marc Andreessen and Ben Horowitz, whose vast crypto portfolio spans Coinbase, Uniswap, Solana and dozens more
While the private nature of Ripple and Andreessen Horowitz makes gauging their leaders’ gains difficult, it’s clear that the billions funneled into crypto coffers far exceed the chunky political donations that preceded them. As one financial reform advocate noted, “Crypto is newer, and so the opportunity for growth is larger.”
The Price of Political Influence
Yet this staggering return on political investment has also drawn sharp criticism. Some observers accuse crypto giants of transactional electioneering, pouring cash into key races to secure legislative support with little regard for the wider political implications.
Fairshake alone spent over $130 million on congressional campaign ads, tailoring its message across the political spectrum without ever mentioning crypto directly. The industry also rallied around the victorious Donald Trump, with Garlinghouse declaring that “Donald Trump embraced crypto and crypto embraced Donald Trump.”
A New Era of Crypto Power
Regardless of the ethical quandaries, there’s no denying that 2024 marked a turning point for crypto’s political clout. With a returning President Trump branding himself the “crypto president” and some 300 crypto-friendly members of Congress taking office, the industry has never been more poised to shape the policies that govern it.
As Andreessen, now a key Trump adviser, and his fellow crypto moguls wield their widening influence – and profit margins – the true impact of this brave new political order may only be beginning to take shape. But one thing seems certain: in the high-stakes world of crypto power plays, the sky’s the limit.
