Amid the sea of American flags and ubiquitous blue signs at the Democratic National Convention in Chicago this week, Jonathan Padilla, the “cryptocurrency guy,” was milling about.
Wearing a baseball cap and a striking pineapple T-shirt, Padilla walked the convention halls, talking crypto policy to anyone who would listen. Selfies posted on Facebook, posing with his arm around Senator Chris Coons of Delaware. “Senator Coons now knows about crypto,” the caption reads.
Padilla is thrilled by his up-to-date nickname as “cryptocurrency guy” given to him by DNC delegates, which he sees as an implicit acknowledgement that cryptocurrency is on the political agenda. “Four years ago, cryptocurrency was a non-issue, and nobody was talking about it,” Padilla says. “But now President Trump is talking about it at major conferences. And it’s being discussed by some of the most senior Democrats.”
Padilla is the founder of cryptocurrency marketing firm Snickerdoodle Labs and was previously PayPal’s resident blockchain whisperer. He is also one of the organizers of Crypto4Harris, a coalition of Democratic-leaning members of the cryptocurrency industry that aims to encourage Kamala Harris to support cryptocurrency legislation and show that the sector “is not monolithically Republican,” Padilla says.
On August 14, Crypto4Harris organized Virtual Town Hall which was attended by prominent Democrats, including Senate Majority Leader Chuck Schumer, who said he “believes in the future of cryptocurrencies.” That group also “made progress,” Padilla said, with “finance and policy people” in Harris’ camp.
The group’s access to Harris’ team reflects a sea change in attitudes toward cryptocurrencies among U.S. politicians, who have seemingly accepted the existence of a bloc of voters who will vote solely on which candidate sends their investments to the moon. (You know, forget about immigration, health care, and the rest.) Not to mention the hefty donations they’re throwing at cryptocurrency businesses.
After cryptocurrency prices surged in 2024, cryptocurrency firms invested an “unprecedented” amount to influence the outcome of the US election this year, analysis by the nonprofit nonprofit Public Citizen suggests. Despite their relatively tiny size from a revenue perspective — and the continued dearth of apply cases outside of financial speculation — cryptocurrency firms account for 48 percent of all corporate contributions this election cycle.
The cryptocurrency industry has placed some money behind the 2020 race. But there’s a up-to-date urgency and resolve in trying to intervene in the 2024 campaign. “The industry feels like this election is existential,” says Veronica McGregor, chief legal officer at cryptocurrency wallet firm Exodus, speaking privately as an industry veteran. “Regardless of who takes office, change needs to happen for our industry to thrive the way it should.”
The majority of political donations from the cryptocurrency industry are channeled through three affiliated super PACs: Fairshake, Protect Progress, and Defend American Jobs. These organizations are not allowed to directly donate to political candidates, but they are free to spend their money promoting those who make the appropriate cryptocurrency cooing noises.
Under Biden, crypto firms have been beaten and dragged to court by U.S. financial regulators in a move they see as deeply unfair. But through super PACs, crypto firms hope to bring to power politicians who will support special cryptocurrency legislation that will end the debate over how cryptocurrencies should be classified and which regulators’ rules should apply.
The largest of these super PACs, Fairshake, has raised more than $200 million — more than any other super PAC, crypto-specific or otherwise. Its top donors include crypto companies Coinbase and Ripple, pro-crypto venture capital a16z, and the investment firm founded by Cameron and Tyler Winklevoss, founders of cryptocurrency exchange Gemini.
Fairshake’s largest donor, Coinbase, which contributed $45 million to the pool, is the subject of formal complaint to the Federal Election Commission. Jointly filed by Public Citizen and developer Molly White, creator of Follow Cryptoproject that tracks donations to the cryptocurrency industry, the complaint accuses Coinbase of violating campaign finance laws by paying funds to Fairshake while negotiating a contract to become a federal contractor.
Coinbase declined an interview request, citing instead public comments filed by Paul Grewal, its lead attorney, challenging the company’s status as a federal contractor because the services it provides are not technically funded by tax revenue. “It seems to us that Coinbase is trying to find a loophole that doesn’t really exist,” White says.