The influence of cryptocurrency and tech billionaires is becoming increasingly apparent in the 2024 U.S. elections, with political contributions from these industries reaching unprecedented levels. As the power dynamics of American politics shift, the role of crypto and tech moguls has sparked concern over their motivations and potential impact on democracy.
Elon Musk, who was once celebrated as Time magazine’s Person of the Year in 2021, is now viewed through a more controversial lens. Though his ventures like Tesla and SpaceX remain influential, his transformation of the platform formerly known as Twitter (now X) has stirred debates. Musk’s embrace of right-wing ideologies has created a ripple effect, though Silicon Valley itself remains predominantly Democratic. Yet, the emergence of tech figures with conservative leanings has introduced a complex layer of influence on the political stage.
The Political Ascent of JD Vance
A prime example of this influence can be seen in the rise of JD Vance, the junior senator from Ohio and Donald Trump’s running mate in the 2024 election. Vance’s political trajectory is often attributed to the financial backing of Peter Thiel, the billionaire entrepreneur who invested heavily in his Senate campaign.
Paul Krugman, in a recent commentary, questioned Vance’s rise to political prominence, pointing out his controversial stance on various issues. “How did Vance get to where he is? He is a remarkable campaigner — remarkable, that is, in the sense that he seems incredibly bad at it,” wrote Krugman. Vance’s claims, such as the unfounded story of Haitian migrants stealing pets in Springfield, Ohio, reflect a broader trend of misinformation spreading within his campaign.
Despite these controversies, Vance’s presence on the national stage highlights the power of tech billionaires like Thiel, who are using their wealth to sway political outcomes. Thiel’s support for Vance underscores how political candidates with extreme views can gain traction through significant financial backing from a select few in the tech industry.
Crypto’s Deepening Role in the Political Arena
Perhaps the most significant development in the 2024 election is the outsized role of the cryptocurrency industry in political financing. According to an August report by Public Citizen, cited by Axios, the crypto sector accounts for nearly half of all corporate contributions to political action committees (PACs) in 2024. In Ohio alone, the industry has funneled over $38 million to support Bernie Moreno, a pro-crypto Republican running against incumbent Democrat Sherrod Brown for the state’s other Senate seat.
Moreno’s stance on crypto aligns with industry interests, as he has positioned himself as a defender of the digital currency. During a bitcoin convention, Moreno questioned the negative perception of crypto, asking, “Are you sick of these politicians who say bitcoin is for drug dealing and money laundering?”
Yet, critics like Krugman argue that crypto’s most apparent use remains rooted in illicit activities, such as drug dealing and money laundering, with few legal applications gaining traction. Despite this, crypto is marketed as a revolutionary technology, with its proponents believing in its potential to reshape industries.
The political spending from the crypto industry seems largely driven by a fear of regulation. Gary Gensler, chair of the U.S. Securities and Exchange Commission (SEC), has suggested that crypto assets should be regulated like securities. This potential regulatory oversight could undermine the speculative nature of cryptocurrencies, which in turn threatens their value.
The Broader Implications of Political Influence
As the 2024 election unfolds, the role of tech billionaires and the crypto industry is raising questions about the future of U.S. democracy. Krugman suggests that the growing political spending from these sectors is driven by financial self-interest and a desire to avoid regulations. “Political spending by tech bros could have huge effects on U.S. politics,” he notes. The Ohio Senate race, backed heavily by crypto money, could determine which party controls the Senate, influencing federal policy on various fronts.
The convergence of tech wealth, political extremism, and cryptocurrency has created a potent mix that could reshape not just the 2024 election, but the broader landscape of American democracy. As political contributions from these industries rise, so too do concerns about their potential to undermine the system from within.
