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TEXXR

Chronicles

The story behind the story

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OpenSecrets: the crypto industry gave $73M in the 2022 US midterms, up from $13M in 2020; FTX has become the third-largest source of 2022 campaign contributions

Paul Kiernan / Wall Street Journal :

Wall Street Journal Paul Kiernan

Context & Ripple Effects

The 2022 cycle was the moment crypto's political spending went from novelty to scale: FEC data had already shown sector donations passing $26.3M in 2021 and early 2022, outpacing Big Tech, drug makers, and defense — and OpenSecrets' final tally of $73M, a more than fivefold jump from 2020, confirms the surge. FTX ranking as the third-largest single source of contributions is the detail that dates the story: the exchange collapsed weeks after this reporting, leaving its beneficiary list frozen mid-cycle.

The arc since is one of escalation despite the FTX shock. Coinbase led sector lobbying at $2.16M in the first three quarters of 2023, crypto-backed super PACs raised $102M+ for the 2024 elections, and by the 2026 midterms industry spending had reached $288M+, over double the 2024 cycle, with Fairshake now the US' fifth most-funded PAC. This 2022 data point is the baseline against which all of that growth measures.

First-order effects

  • FTX's collapse makes its donor ranking a liability for the candidates and committees that took its money, while removing the third-largest contributor from the sector's 2024 bench — a hole rivals must fill immediately.

Second-order effects

  • Coinbase and other surviving exchanges picked up the spending baton, with Coinbase topping sector lobbying at $2.16M and corporate money flowing into super PACs like Fairshake rather than direct contributions — a structure less exposed to any single company's failure.

Third-order effects

  • If the pattern holds, crypto's political footprint becomes institutional rather than company-dependent: sector-backed PACs already accounted for roughly half of all corporate election money in 2024, making the industry a standing constituency in campaign finance regardless of which exchanges survive.

The trend: Crypto's political spending is compounding cycle over cycle — $13M in 2020, $73M in 2022, $119M+ through mid-2024, $288M+ in 2026 — shifting from direct corporate donations to durable PAC infrastructure built to outlast individual firms like FTX.