By Hannah Lang
(Reuters) - Outside political groups tied to the cryptocurrency industry have raised more than $102 million to spend on the upcoming U.S. congressional elections in order to elevate candidates who are friendly to digital assets, according to a report from Public Citizen.
WHY IT'S IMPORTANT
Only two other political groups, or super PACs, have raised more money than the crypto sector this election cycle, Public Citizen said.
The money raised by crypto-backed super PACs shows how crypto companies are hoping to influence policies in their favor as the industry is facing increased scrutiny from regulators such as the Securities and Exchange Commission, as well as lawmakers.
BY THE NUMBERS
About $54 million of the crypto industry's political war chest comes from direct corporate expenditures, primarily from Coinbase (NASDAQ:COIN) and Ripple Labs, according to the report.
The remainder comes from crypto executives and venture capitalists: $11 million each from the founders of Andreessen Horowitz, $5 million from crypto exchange Gemini founders Cameron and Tyler Winklevoss, and $1 million from Coinbase CEO Brian Armstrong.
CONTEXT
Crypto-backed super PACs have said they will focus their spending on November's U.S. Senate races in Ohio and Montana, where Democrats Sherrod Brown and Jon Tester are seeking reelection.
Both Brown and Tester sit on the Senate Banking Committee and have been critical of cryptocurrency, particularly its use by groups that the U.S. has deemed bad actors, including Hamas and North Korea's Lazarus Group.