Rep. Summer Lee Speaks Out on Crypto Corporations’ Influence in Elections at Public Citizen Panel
FOR IMMEDIATE RELEASE
Contact:
Vaibhav.Vijay@mail.house.gov | 771.215.7243
Kyla.Gill@mail.house.gov | 412.841.7913
Rep. Summer Lee Speaks Out on Crypto Corporations’ Influence in Elections at Public Citizen Panel
WASHINGTON, D.C. – Congresswoman Summer Lee (D-PA) joined Public Citizen and leading campaign finance experts for a panel discussion on “Crypto Companies’ Unprecedented Election Spending,” addressing the influence of crypto money on U.S. elections and the risks it poses to the integrity of government contracts and democracy. The discussion, which included insights from crypto researcher Molly White, campaign finance advocates, and Public Citizen representatives, focused on how super PACs, including Fairshake, have funneled millions into election campaigns, often undermining the few representatives committed to fighting corporate influence and protecting working-class interests.
In her remarks, Rep. Lee highlighted the danger of crypto-backed super PACs seeking to reshape policy and sway candidate positions, especially around crypto regulation. Fairshake PAC alone has raised over $202.9 million this election cycle, with more than half ($107.9 million) directly from major crypto corporations Coinbase and Ripple. According to reports, crypto corporations’ direct spending in elections has topped $119 million, propelling the industry into the ranks of the top corporate donors this cycle, second only to fossil fuel corporations. “Crypto’s unprecedented spending isn’t just a new wave of campaign finance; it’s a direct assault on democratic representation,” Rep. Lee stated. “This money buys influence and erodes the voices of those who can’t match these millions in donations.”
This panel appearance follows Rep. Lee’s letter to the Federal Election Commission (FEC) requesting a thorough investigation into allegations that Coinbase, Inc., a federal contractor, violated campaign finance laws by making significant political donations while under contract with the U.S. Marshals Service. As outlined in her letter, Coinbase contributed $500,000 to the Congressional Leadership Fund on March 20, 2024, and $24,999,995 to the Fairshake super PAC on May 30, 2024, both during an active federal contract period.
The letter details that Coinbase was awarded a $32.5 million federal contract on July 1, 2024, to manage asset sales for the U.S. Marshals Service. The complaint, originally filed by Public Citizen and Molly White, argues that as a federal contractor, Coinbase was prohibited from making these donations under federal law, which bars federal contractors from contributing to political committees to prevent any undue influence on contract negotiations or the awarding of future contracts.
Coinbase has tried defending its contributions, claiming they fall outside the scope of federal contractor restrictions because the contract was funded through the DOJ’s Asset Forfeiture Fund rather than congressional appropriations. However, as clarified in the complaint, the Asset Forfeiture Fund is considered congressionally appropriated, making Coinbase’s contributions a potential violation of the Federal Election Campaign Act. Rep. Lee’s letter urges the FEC to investigate these allegations to protect the integrity of federal contracting and maintain a clear boundary between corporate political donations and public funds. A full copy of Rep. Lee’s letter to the FEC can be accessed here.
Rep. Lee emphasized the stakes: “Allowing federal contractors to influence political campaigns while receiving taxpayer dollars opens the door to a dangerous precedent that threatens the transparency and fairness of our democracy.”