Cryptocurrency advocates have poured substantial financial resources into Arizona’s primary elections, highlighting their growing influence in U.S. politics. While the impact of this spending on election outcomes remains uncertain, the commitment of crypto corporations to shape political landscapes is undeniable.
In the 2024 election cycle, crypto companies have invested an estimated $120 million in federal races across the United States, largely through nonpartisan super political action committees (PACs) dedicated to supporting pro-crypto candidates and opposing those skeptical of digital currencies. With the general election approaching, this trend shows no signs of slowing down.
In Arizona, the Congressional District 1 race has become a focal point for crypto spending. Protect Progress, one of three super PACs backed by crypto interests, invested over $400,000 to support Andrei Cherny, a former White House aide and one-time Democratic state chair. However, despite this substantial backing, Cherny lost the primary. The support for Cherny was as much an effort to oppose Amish Shah, an ER physician and former state lawmaker, who ultimately emerged victorious.
Shah, who faces incumbent Republican David Schweikert in one of the nation’s most competitive congressional races, has been labeled as “strongly against crypto” by the advocacy group Stand With Crypto. The Cook Political Report has rated this race as a toss-up, underscoring the uncertainty and competitiveness of the contest.
In another key race, Congressional District 3, Protect Progress directed nearly $1.4 million in outside spending to support Yassamin Ansari, who narrowly defeated Raquel Terán in the primary. Ansari is widely expected to win the seat vacated by Ruben Gallego, given the district’s significant Democratic advantage in registered voters.
The influence of crypto super PACs is also anticipated in the Congressional District 6 race, where first-term U.S. Rep. Juan Ciscomani, a Republican, faces Democrat Kirsten Engel. Stand With Crypto considers Ciscomani a strong supporter, though they have not rated Engel. The Cook Political Report also lists this contest as a toss-up, adding to the high stakes of the upcoming election.
As the general election draws near, spending reports will soon provide a clearer picture of crypto’s financial influence. However, it is evident that the crypto sector is determined to secure political allies who can help shape the future of cryptocurrency regulation in the United States. This comes at a critical juncture, as major crypto companies face lawsuits from federal regulators over trading practices and the handling of customer assets.
Flush with funds from a recent upswing in cryptocurrency prices, advocates are eager to install politicians who will champion legislation that clarifies how crypto should be classified and regulated. According to the consumer advocacy group Public Citizen, crypto-related spending accounts for nearly half of all corporate contributions in this year’s election.
The crypto-backed super PAC Fairshake has been particularly active, spending $10 million on ads attacking progressive Katie Porter, who is in a runoff with U.S. Rep. Adam Schiff for the U.S. Senate. Porter has raised concerns about the environmental impact of cryptocurrency mining and its contribution to climate change. Crypto advocates point to the defeat of New York U.S. Rep. Jamaal Bowman in the Democratic primary—where Fairshake spent $2 million—as a warning to politicians who oppose their interests.
The question remains whether crypto interests will extend their influence to Arizona’s state legislative races. A number of bills aimed at expanding cryptocurrency adoption in Arizona have already been introduced, with some even being enacted. The heavy spending against candidates like Shah and Terán was triggered by their opposition to just a few crypto-related bills, reflecting the high stakes for the digital currency sector as it continues to seek legitimacy and broader acceptance.
As election day approaches on November 5, voters should remain vigilant about the influence of attack ads and the potential consequences of crypto’s growing role in American politics.
