A political network, funded largely by the cryptocurrency industry, has unleashed an unprecedented campaign to secure its influence in Washington, spending over $134 million in support of key allies running for Congress. This initiative, spearheaded by a group called Fairshake and two other super PACs, has channeled funds into advertisements promoting candidates aligned with crypto-friendly regulations, according to data analyzed by The Washington Post.
Fairshake and its partners, Defend American Jobs and Protect Progress, have invested heavily in races across the U.S. since January 2023. These groups have aired ads involving 67 political candidates, focusing on building a coalition of lawmakers that could help prevent the imposition of stricter regulations on the cryptocurrency sector.
Crypto’s Agenda Behind the Scenes
Despite the heavy advertising campaign, none of the ads explicitly mention cryptocurrency. However, the underlying motive is clear. Fairshake is determined to pack Congress with lawmakers sympathetic to crypto interests, as federal regulators are just beginning to explore new rules for the industry. Between January 1, 2023, and October 10, 2024, the crypto-backed PACs dominated political ad spending in several key races.
The organizations behind this effort are linked to major crypto companies, including Coinbase and Ripple, both of which are under federal scrutiny for their business practices. The political blitz signals the industry’s swift rise in political influence, which has already resulted in the defeat of several notable crypto critics, including California Democrat Rep. Katie Porter.
“They are attempting to buy policy, and they are implementing a strategy they think can do it using the elections,” said Rick Claypool, research director for Public Citizen, a campaign finance watchdog.
Responding to the criticism, Josh Vlasto, a spokesperson for Fairshake, stated, “We are proud of the progress we have seen toward the creation of a sustainable bipartisan 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.”
Securing Allies in Congress
The crypto industry has been strategic in securing its foothold, spending nearly $18.4 million on ads to promote 23 lawmakers who hold key positions on congressional committees overseeing cryptocurrency regulation. The House Financial Services Committee has been a particular focus, as it has produced a series of bills that could limit the powers of regulators like the Securities and Exchange Commission (SEC).
In Minnesota’s 6th District, for example, crypto groups spent $63,000 to support Republican Rep. Tom Emmer, a long-time crypto advocate. Similarly, $1.89 million was spent to promote Nevada Democrat Rep. Steven Horsford, while $2 million was allocated to boost California GOP Rep. Young Kim, both of whom have spoken positively about the industry.
Crypto’s Power Play in the Senate
Perhaps the most aggressive efforts have been directed at Senate races, where control of the chamber could significantly impact the future of cryptocurrency regulation. Crypto-funded super PACs have spent roughly $70 million supporting Republican candidates, including Bernie Moreno in Ohio and Jim Banks in Indiana. Both candidates have championed pro-crypto positions, while Moreno’s opponent, incumbent Democrat Sen. Sherrod Brown, is a vocal critic of the industry.
While crypto spending has predominantly favored Republicans, it has also supported several pro-crypto Democrats, including Michigan Rep. Elissa Slotkin and Arizona Rep. Ruben Gallego, who have received $9.5 million and $9.2 million, respectively, in campaign funding.
Targeting Critics and Rewarding Allies
Crypto magnates have not only bolstered their allies but have also gone after lawmakers critical of the industry. Last year, Rep. Katie Porter faced a barrage of ads accusing her of financial misconduct, financed by crypto interests. Porter lamented the ads’ absence of crypto-related content, despite the clear industry funding behind them. “That kind of naked political power does not create the best regulation,” she said in an interview earlier this year.
As the 2024 election nears, the influence of cryptocurrency money on political campaigns is evident. With millions being spent to sway key races, the industry’s efforts to shape future regulation in its favor may well have a profound effect on the makeup of Congress and the broader regulatory landscape for digital finance.