Fresh off spending more than $10 million to defeat Progressive Democratic Rep. Katie Porter in California’s Senate race, the crypto industry’s new big super PAC has identified its next political target this fall. At the top of the list are the two races contested by the most dangerous Democrats seeking re-election: Ohio and Montana.
Entering 2024 with more than $80 million in the bank, the crypto industry and its affiliated super PACs are using their financial and political power to elect allies and ultimately pass a favorable set of regulations in Congress. We aim to form a
“How do people understand that cryptocurrencies are real, that it’s a real issue?” said the head of US policy at Coinbase, one of the largest crypto trading platforms. Kara Calvert, who is in charge of the project, said: “When you have $85 million in funding for an issue, that’s pretty realistic.”
Josh Brust, a spokesperson for FairShake, the largest of three new crypto super PAC groups, said super PACs will compete in four Senate races this year: the Democratic primary and general election in Maryland and Michigan. He said he had made the decision to do so. The elections include Ohio, where Sen. Sherrod Brown is seeking re-election, and Montana, where Sen. Jon Tester faces serious challenges.
“We're going to have the resources to influence race and the composition of institutions at all levels,” Brust said. “And we will strategically leverage those assets to maximize their impact to build a sustainable, bipartisan cryptocurrency and blockchain coalition.”
Brown and Tester are the only two incumbent Senate Democrats running in states won by former President Donald J. Trump in 2020, making it difficult for the party to have any hope of maintaining its slim majority. Democrats need to win both.
Vlast said the crypto super PAC has not yet decided whether to oppose or support Brown and Tester. But the signs of where Fair Shake is headed are clear.
As chairman of the Senate Banking Committee, Brown is a voice of public skepticism against what he calls “cryptocurrency abuse.” “Cryptocurrency is attractive to criminal organizations and fraudsters,” he said at a hearing. One of Brown's Republican opponents, Bernie Moreno, has been promoting cryptocurrencies in the Cleveland area. The Republican primary election will be held later this month.
The announcement that the industry is looking to pump billions into the Ohio race is a warning. Targeted races and industry-related surveys will soon require all elected officials in many other races and states to document their positions on crypto issues, according to two people familiar with the industry's plans. It is said that he will receive the following. It's not uncommon for special interest groups to conduct such surveys, but they can be difficult for the politicians asked to fill them out.
“I can't say they have a target on their backs,” Calvert said of Brown and Tester. “What I'm saying is, I think there's an opportunity and there's a critical period between now and the election where a lot of policymakers are going to have to make some decisions. I would support clear rules. Or not? And what about consumer protection? Or not?”
Coinbase has contributed more than $23 million to a new group of crypto super PACs, making it one of three major industry players with the majority of super PAC funds, along with Ripple Labs and Andreessen Horowitz. . The industry also has a nonprofit group called Stand With Crypto, which highlights that 52 million Americans own cryptocurrencies, with roughly equal support among Democrats, Republicans, and independents.
The increase in political activity comes as the industry seeks federal regulation to give digital currencies more legitimacy.
Tester, who serves on the Banking Committee, is also skeptical of virtual currencies. He told NBC's “Meet the Press” in December 2022 that cryptocurrencies “just didn't pass the smell test for me.” “If we regulate it, maybe people will think it's real,” Tester added in an interview.
Porter, a close ally of Sen. Elizabeth Warren of Massachusetts, a Democrat and a skeptic of the crypto industry, said that after Fairshake spent $10 million against her, Porter, a close ally of Massachusetts Sen. He said the war was “rigged by billionaires.”
Mr. Vlast responded, “Katie Porter, thank you for crediting Fair Shake for your loss.”
In addition to the super PAC's ads, Stand With Crypto held a campaign rally in Los Angeles with rapper Nas and Coinbase CEO Brian Armstrong.
“In 2024, it will become clear that anti-cryptocurrency is bad politics,” Armstrong said, according to the group. “Go out and vote and make your voice heard.”
The 2024 election will not be the first election to feature a massive injection of cryptocurrencies. In 2022, Sam Bankman Fried, the founder of cryptocurrency exchange FTX, poured tens of millions of dollars into Congressional elections. FTX spectacularly went bankrupt, wiping out billions of dollars, and Bankman Fried, who appeared at the Capitol and attended a House Democratic rally, was later convicted of fraud and conspiracy.
In addition to these Senate contests, new crypto super PACs have already participated in recent Democratic House primaries and some Republican races. FairShake's two affiliated crypto PACs are called Protect Progress, which focuses on Democratic elections, and Defend American Jobs, which will be involved in Republican elections.
Protect Progress spent $1.7 million to back Shomali Figures for a vacant seat in the Alabama House of Representatives. (promised to accept) and spent nearly $1 million representing Julie Johnson in Texas (describing her as such). Her website says, “Americans can benefit from cryptographic innovation.” Mr. Johnson won the primary, and Mr. Figures advanced to the runoff in first place.
Vlast said FairShake and its affiliates consider “the candidate's leadership on issues important to the crypto community, the candidate's viability, the importance of the election, and the “It will evaluate our ability to influence the war.”
He said the group has also decided to participate in the two ongoing Democratic Senate primaries, but has not yet decided on a side.
In Michigan, Rep. Elissa Slotkin is a leading Democratic candidate and serves on the House Agriculture Committee, which is considering cryptocurrency regulation. Her opponents are businessman Nasser Beydoun and actor Hill Harper.
In Maryland, Rep. David Tron, a wealthy former businessman, is running against Prince George's County Executive Angela Allbrooks.
