Sam Bankman-Fried, the founder and CEO of cryptocurrency derivatives exchange FTX, has contributed $5.2 million to the US Democratic presidential candidate Joe Biden’s campaign.
Banman-Fried is the second highest contributor to Biden’s campaign after Michael Bloomberg, who contributed $56 million. The financial data firm founder who also ran briefly for his personal bid for the Democratic presidential nomination accounted for almost three-quarters of the total $79.5 million, which came from 100 donors.
According to the Associated Press, Biden is currently leading the race with 264 electoral votes, just six electoral college points away from securing the 2020 presidential election, compared to Donald Trump’s 214.
The donations came from organizations’ PACs that means the individual members, owners, employees, or individual’s immediate families as the organization themselves are prohibited from donating.
Other top continuators to Biden, in the same range as Bankman-Fried, has been Renaissance Technologies and the largest shopping mall operator in the US Simon Property Group.
The $74 billion US quant hedge fund RenTec actually has been eyeing the bitcoin futures market as per its regulatory filing.
Banman-Fried made the donation through its trading firm Alameda. Commenting on this, one trader said, “If it’s good for crypto and US laws around trading crypto, I couldn’t care less.”
“There’s a common misbelief that Republicans are “better” for crypto than Democrats. Ask anyone who works on crypto policy in DC & they’ll tell you that’s not true,” said Jake Chervinksy, the General Counsel at Compound Finance.
He further noted how it was under Trump that crypto first gained global significance, but he said he’s “not a fan” and “his administration’s policies have reflected that view.”
It has also been during President Trump’s term that the IRS added the infamous “do you own crypto” question. Chervinksy believes, “Democrats can be convinced to support a de minimis tax exemption for crypto spending since it advances financial inclusion.”
Moreover, there are many aspects of the technology such as consumer protection, financial inclusion, disintermediation of Wall Street, and “Big Tech” that are attractive to Democrats.
“Soon, we’ll have a chance to convince President Biden of how valuable crypto can be to the USA. I’m optimistic!” he added.