The AI and cryptocurrency sectors have garnered significant attention over the past year, particularly due to the substantial funds raised by corporate political action committees (PACs).
Extravagant spending during the recent federal elections in the United States has resulted in significant policy alterations that benefit the crypto sector, with indications that the comprehensive legislative framework known as the CLARITY Act may soon become law.
However, this has not won over the trust of voters in the crypto sector. Recent surveys conducted by Politico reveal a general skepticism toward cryptocurrencies, with the public hesitant to embrace the advantages of AI.
“Voters from various political backgrounds are voicing concerns,” remarked Michael Beckel, the director of money in politics reform at Issue One, in an interview with Cointelegraph. “Some candidates across the political spectrum are attempting to tap into that frustration and discontent.”
Voter distrust in cryptocurrency and skepticism toward AI’s advantages
A recent Public First poll for Politico indicates that a majority of Americans lack faith in cryptocurrencies and doubt the benefits of artificial intelligence.
Source: Politico
While Republican voters exhibit slightly more trust in crypto, about 47% of Americans prefer traditional banks over cryptocurrency platforms, with only 17% expressing equal trust in both.
Similarly, opinions on AI are not particularly favorable. Approximately 43% of Americans believe the risks associated with AI outweigh its benefits, while just 33% think otherwise.
Source: Politico
Currently, a majority of the population is unaware of the significant lobbying activities related to crypto and AI. Politico reports that merely nine percent have heard of the AI Super PAC, Leading the Future, and just three percent are familiar with the pro-crypto PAC, Fairshake.
This level of awareness pales in comparison to well-known organizations like the National Rifle Association or the Planned Parenthood Action Fund, which are household names.
Nonetheless, connections to the crypto sector might pose challenges. Ohio Republican Representative Jim Renacci expressed to Politico, “If constituents know a candidate is supported by crypto interests, it may deter them, because the people I speak to in Ohio generally do not understand crypto and many express discomfort with it.”
Boosting awareness of crypto lobbying may not yield favorable results. Rick Claypool, research director at Public Citizen, commented to Cointelegraph:
“Typically, voters oppose corporate influence in politics.”
“Even post-Citizens United, major corporations tended to avoid direct engagement. When they did participate, they often funneled contributions through anonymous entities that concealed their funding sources.”
In this context, the crypto industry’s extensive fundraising in 2024 was somewhat atypical. Key players like Coinbase and a16z openly invested millions into various campaigns.
However, the messaging from Fairshake largely did not center on crypto, reflecting instead a broader alignment with supported candidates’ policy positions or criticisms of those seen as anti-crypto.
In essence, candidates perceived as independent of corporate influences tend to have a competitive advantage,” stated Claypool. This was evident for populist figures such as US Senator Bernie Sanders and even former President Donald Trump, who claimed during his 2016 campaign that “his wealth made him unbuyable, which appears ironic in retrospect.”
Should public awareness regarding crypto and its efforts to shape policy increase, it might lead to adverse consequences.
According to Issue One’s Beckel, “If voters regard an industry as problematic, candidates who wish to maintain a favorable image may need to distance themselves from that industry.”
Grassroots movements mobilize against AI, while crypto gains attention in Washington
Voter discontent with specific industries has prompted tangible actions.
Beckel highlighted a recent instance where negative public sentiment regarding the oil and fossil fuel industries led some Democratic candidates to reject contributions from them. He noted that certain groups are already advocating for lawmakers to disconnect from AI funding.
Indeed, a grassroots movement against the AI sector is emerging, particularly targeting the construction of costly and resource-demanding data centers. Local initiatives across seven states have either blocked or postponed more than $64 billion in data center investments, with Maine preparing to propose a statewide ban.
Municipalities in states like California, Oregon, Arizona, Texas, Missouri, Indiana, and Virginia have enacted bans or delayed projects. Source: Data Center Watch
Claypool emphasized that this could represent a significant opportunity for Congressional candidates to harness the grassroots movement against data centers, particularly for Democrats, although not exclusively, since the tech sector has closely intertwined itself with the Trump administration.
The growing partisan alignment may also impact voters’ perceptions of these sectors.
Jason Thielman, former executive director of the National Republican Senatorial Committee, stated that the crypto sector has sought to “maintain some level of bipartisanship and identify champions for these causes.”
Nevertheless, despite claims of bipartisanship—Coinbase CEO Brian Armstrong referred to crypto as “the most bipartisan issue” in Washington—its priorities, such as deregulation and reduced enforcement, largely reflect Republican interests, albeit not exclusively, according to Claypool.
Claypool added, “Crypto billionaires portray themselves as scrappy underdogs in opposition to Wall Street.”
“However, this narrative becomes less convincing now that their allies control not only the White House but also the DOJ, SEC, CFTC, Treasury Department, and Commerce Department.”
Furthermore, the association with Trump has deepened since the former president fully embraced the crypto industry in 2024, granted pardons to convicted executives, and leveraged cryptocurrency for personal gain.
As Trump’s popularity faces challenges due to international missteps, economic uncertainty, and contentious domestic policies, the risk of political fallout increases for those linked to him and his party.
In a recent Democratic Senate primary in Illinois, Lieutenant Governor Juliana Stratton accused her rival, Representative Raja Krishnamoorthi, of being backed by substantial funds from “MAGA-aligned crypto supporters.” She won the race by a seven-point margin.
This dynamic could also shape future policymaking. Beckel noted, “If an industry is perceived as a supporter of one political party and an adversary of the other, it may find itself scrutinized when the opposing party ascends to power.”
For the cryptocurrency and AI sectors, that scrutiny could commence as early as November 4.