As the US general elections approach, political action committees (PACs) representing the crypto industry’s interests are poised to spend nearly $200 million to support candidates advocating for favorable regulatory changes.
With $140 million already allocated, the industry’s financial influence is expected to surge in the election’s final weeks, potentially reshaping the political landscape.
Fairshake’s Strategy In Crypto Industry Political Funding
In its latest move, the Fairshake political action committee, set up by key players in the crypto sector, including Coinbase Global, Ripple Labs, and venture capital firm Andreessen Horowitz, has targeted candidates such as Sherrod Brown, the Democratic senator from Ohio and chairman of the banking committee.
According to Bloomberg, Fairshake has poured around $40 million into supporting Republican challenger Bernie Moreno, who has closed the gap on Brown, with polls suggesting a mere 3% difference, making the race extremely competitive.
However, Fairshake has emerged as a bipartisan force, supporting candidates from both parties to ensure crypto issues receive serious attention. The PAC operates two affiliated groups: Defend American Jobs, which backs Republican candidates, and Protect Progress, which supports Democrats.
Despite its bipartisan approach, Fairshake’s spending has sparked controversy. Silicon Valley venture capitalist Ron Conway criticized industry leaders for backing Moreno, arguing that supporting Brown would be more strategically sound given his critical role in the Senate.
Fairshake’s advertisements rarely mention cryptocurrency directly; instead, they focus on the candidates’ personal stories and political views. For instance, ads promoting Moreno highlight his family background and alignment with Donald Trump’s energy policies.
The PAC’s strategy has targeted candidates who oppose pro-crypto legislation, viewing primary defeats of figures like California Representative Katie Porter and New York Representative Jamaal Bowman to validate their tactics.
Diverse Candidate Support
Fairshake spent $3.4 million in Utah to support John Curtis in his primary contest, significantly impacting the race and positioning him favorably for the upcoming general election.
Curtis’s success illustrates the political action committee’s influence, which has drawn criticism from opponents who lament the “overwhelming” financial backing they faced.
In addition to Ohio, Fairshake’s efforts extend to other key races. In Michigan, over $10 million has been spent to support Elissa Slotkin, a pro-crypto candidate, while another $10 million has been directed towards Ruben Gallego’s campaign in Arizona.
Fairshake has also backed Democratic congressional candidate Shomari Figures in Alabama, who has made cryptocurrency a central part of his platform.
By supporting a diverse array of candidates, the crypto industry is deviating from traditional corporate political strategies, which often favor one party. As Rick Claypool, a research director for Public Citizen, points out, this approach is transactional, aiming to influence lawmakers to support favorable policies in exchange for campaign support.
With at least $40 million left in its coffers to spend in the final weeks before the election, Bloomberg reported that Fairshake is well-positioned to make additional contributions as the election date approaches.
The PAC has also recently shifted its focus to several close House races, continuing its pattern of bipartisan support by backing candidates such as Republican Michelle Steel and Democrat Yadira Caraveo.
Featured image from DALL-E, chart from TradingView.com
