Cryptocurrency sector-backed super political action committees are making their first battleground Senate endorsements in the general election, announcing they intend to spend millions of dollars in Ohio , Arizona , and Michigan to elect candidates they see as friendly to the industry.
Fairshake PAC and its two affiliated PACs, Defend American Jobs and Protect Progress , have raised close to $240 million for the 2024 election cycle, according to an analysis of disclosures as of Sunday by OpenSecrets, a watchdog group that tracks money in U.S. politics.
Defend American Jobs announced Tuesday that it will spend at least $12 million to support Republican Bernie Moreno in his race against Sen. Sherrod Brown (D-OH), who is one of the most vulnerable Democrats up for reelection this cycle.
Brown has been an outspoken crypto skeptic and has been an obstacle in moving legislation related to the industry as chairman of the Senate Banking Committee, while Moreno helped found a blockchain startup, which is the ledger technology behind digital assets.
Protect Progress is preparing to launch $3 million in ad campaigns to back Rep. Ruben Gallego (D-AZ) in his Senate race in Arizona and Rep. Elissa Slotkin (D-MI), in her Senate race in Michigan. Both Gallego and Slotkin voted for the House’s Financial Innovation and Technology for the 21st Century Act and Congress’s effort to overturn the Securities and Exchange Commission crypto account policy.
“Our mission is clear — support candidates who embrace innovation, want to protect American jobs, and are committed to working across the aisle to get things done and oppose those who do not,” said Josh Vlasto, a spokesman for Fairshake and its affiliated super PACs, in a statement to the Washington Examiner.
“We are proud of the progress we have seen toward the creation of a sustainable bi-partisan coalition and a consensus that there is an urgent need to pass responsible crypto and blockchain-focused regulation that advances innovation, protects American jobs, and roots out bad actors,” he added. “We will continue to execute this strategy through November and into the future.”
In addition to funding ads on broadcast TV until election day, Vlasto said the PACs will also engage in digital targeting to motivate voters to turn out. Cody Carbone, chief policy officer at the Digital Chamber, a pro-crypto advocacy group, said he believes the industry will have a pronounced influence on this cycle.
“This gives the industry’s years of tireless advocacy political muscle, which it has been lacking as compared to other industries,” Carbone told the Washington Examiner on Tuesday. “Advocacy and sound policy can only get you so far in today’s political climate, but this now creates a wake-up call for candidates on every ballot that they must have a position on crypto.”
The groups have not yet decided whether they will play in Montana, but Sen. Jon Tester (D-MT), another vulnerable Democrat up this cycle, could be a target of the PAC. Tester told NBC News in 2022 that crypto did not “pass the smell test.” Although, lately he has made statements that may show his attitude is shifting, recently telling reporters that he’s considering several crypto bills currently in the Senate. Tester was one of 11 Democrats to vote to overturn SEC guidance on crypto.
Speaking at an annual Bitcoin conference last month in Nashville, former President Donald Trump promised to ensure America becomes “the crypto capital of the planet" and "bitcoin superpower of the world." The 2024 Republican presidential nominee, who had notably been skeptical of cryptocurrency, painted himself as a crypto advocate in contrast to the Democratic ticket.
It is still unclear whether the crypto giants will spend in the presidential election. According to several previous reports, Fairshake is not planning to spend on the presidential race.
“The goal for industry leaders is to be nonpartisan, and I think many are waiting on the sidelines to see how Vice President Harris positions herself on this technology before getting involved in the presidential,” Carbone explained.
The industry group's major backers include firms Coinbase and Ripple. So far, the spending has mostly focused on House races. The groups have helped many crypto-friendly candidates win primaries, contributing to the victories of Rep. Jim Banks (R-IN) for Senate in Indiana, Gov. Jim Justice (R-WV) for the open Senate seat in West Virginia, and Rep. John Curtis (R-UT), who is likely to take over Sen. Mitt Romney’s (R-UT) seat in Utah.
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Carbone believes candidates on both sides of the aisle have been receptive to the industry overall.
“I’d argue it’s party agnostic,” Carbone explained. “As a collective, the Republican Party has been more receptive with few detractors and many realizing the benefits this technology will have for the U.S. However, there is a large and growing contingent of Democrats that are interested in moving this technology forward through sound policy and having the U.S. lead.
“They’re helping educate some of their colleagues who are opposed, which has made huge strides for the industry over the last few months,” he added.
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