The CEO of the bitcoin and crypto-based exchange FTX, Sam Bankman-Fried, has donated $ 5.2 million to Joe Biden.
Bankman-Fried’s donation could be FTX’s gateway to the US market.
A report from the Wall Street Journal revealed the entry of a major player in the Bitcoin market and cryptocurrencies into US politics. The founder of the FTX crypto derivatives exchange, Sam Bankman-Fried, is the second largest donor in 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.
While it has long looked like Donald Trump would win the election, at the last moment the tide may have turned in Joe Biden’s favor. The participation of voters through the mail could be crucial. There is currently a record turnout in the election, but there is still no clear winner.
Bankman-Fried is part of the Political Action Committee (PAC) or Super PAC, which has no legal restrictions on the amount of money it can spend. However, the funds raised by the Super PACs can only be invested at the state level. However, the law forbids making donations at the federal level.
Therefore, the money raised was sent to contribute to the campaign in 3 key states: Florida, Ohio and Texas. The amount donated by Bankman-Fried is only exceeded by Michael Bloomberg. The magnate made a contribution of $ 56 million.
In total, Biden received $ 79.5 million from key donors. In contrast, the incumbent president received $ 75 million. Given how tight the choice is, the FTX CEO’s input could be critical to the bottom line. In total, the Center for Responsive Politics estimates that both candidates’ campaigns received nearly $ 2.2 billion in donations. Bankman-Fried’s $ 5.2 million is on top of donations from Alphabet Inc (Google), Simon Property Group, Euclidean Capital, and others.
Bitcoin reaches Washington
Bankman-Fried’s donation could have a noticeable impact if a Joe Biden win is consolidated – especially in implementing a new regulatory policy when there is a new government. At least the crypto community has responded positively to the donation from the CEO of FTX. One user stated that “Crypto needs to increase its presence in DC (District Capital, Washington).” Others expect positive effects from Bankman-Fried’s donation:
It is surreal to see a crypto CEO donate such a relatively (and absolutely) high contribution to the election. Let’s hope that Bankman-Fried actually did lobbying for cryptocurrencies with the Biden team before donating.
Notably, FTX is a Hong Kong-based exchange. Under US law, US citizens are not allowed to participate in trading their derivatives. Therefore, the donation could be aimed at easing regulations so that the exchange can eventually enter the US market. Analyst Adam Cochran said:
It was a donation to a super PAC that is going down in broad votes. This is political lobbying and is a great way to get regulation changes.