- CEO of Bitcoin and crypto-based exchange FTX, Sam Bankman-Fried, has contributed $5.2 million to Joe Biden’s campaign.
- Bankman-Fried’s contribution could be FTX’s gateway to the US market.
A report by the Wall Street Journal has revealed the entry of a major player in the Bitcoin market and cryptocurrencies into U.S. politics. The founder of crypto derivatives exchange FTX, Sam Bankman-Fried, is the second-largest contributor to Joe Biden’s presidential campaign. With a donation of $5.2 million, Bankman-Fried could have contributed to the possible victory of the next President of the United States.
Although for a long time it looked like Donald Trump would win the election, the tide may have turned in favor of Joe Biden at the last moment. The participation of voters by mail may be decisive. Currently, the election has had a record turnout, but there is still no clear winner.
Bankman-Fried is part of a special Political Action Committee (PAC) or Super PAC that has no legal limitations on the amount of money it can collect. However, the money collected by the Super PACs can only be invested at the state level. The law prohibits them from making federal contributions.
Therefore, the money was sent to contribute to the campaign in 3 key states: Florida, Ohio, and Texas. Bankman-Fried’s contribution is only surpassed by Michael Bloomberg. The magnate made a contribution of $56 million.
In total, Biden received $79.5 million from his top donors. In contrast, the current president received $75 million. Considering how tight the election has been, FTX CEO’s contribution could be key in the results. In total, both candidates’ campaigns have received nearly $2.2 billion in donations, according to the Center for Responsive Politics estimates. The $5.2 million from Bankman-Fried adds to donations from Alphabet Inc (Google), Simon Property Group, Euclidean Capital, among others.
Bitcoin arrives in Washington
Bankman-Fried’s contribution could have tangible implications if a Joe Biden victory is consolidated; especially in the implementation of a new regulatory policy, if there is a new administration. At least, the crypto community reacted positive to FTX CEO’s donation. One user stated that “crypto needed to step up its game in DC (District Capital, Washington)”. Others expect positive implications from Bankman-Fried’s donation:
Surreal to see a crypto CEO have such a relatively (and absolutely) high contribution for the election. Let’s hope Bankman Fried actually lobbied for Crypto with the Biden camp before donating.
Remarkably, FTX is a Hong Kong-based exchange. Due to U.S. law, it does not allow U.S. citizens to participate in the trade of its derivative products. In that sense, there could be an agreement to relax regulations so that the exchange can eventually make an entry into the U.S. market. In that sense, analyst Adam Cochran stated the following:
It was a donation to a super PAC that was broad down ballot plays. That’s political lobbying and a great way to get regulation changes.
