Crypto Industry Wields $160 Million War Chest in US Election Influence
Crypto billionaires and their allies have pooled a $160 million fund to safeguard their fortunes by supporting US candidates who favor minimal regulation of the industry, according to a Bloomberg report. This substantial sum elevates the crypto industry to a prominent position in federal campaign finance, already demonstrating its impact in recent elections, notably in California’s Senate race.
The upcoming November elections could potentially shift Senate control to Republicans, heavily relying on pivotal races involving Democratic incumbents like Sherrod Brown of Ohio and Jon Tester of Montana, who are known for their skepticism towards cryptocurrencies. These states are crucial as they were won by Donald Trump in the previous election, making them primary targets for Republican campaigns.
Fairshake, a political action committee backed by the crypto industry, alongside affiliated groups, has seen a significant increase in funding, boosted by major contributions from Ripple Labs, Andreessen Horowitz, and Coinbase Global Inc. Prominent figures like the Winklevoss twins and Coinbase CEO Brian Armstrong have also contributed substantial amounts, underlining their commitment to influencing electoral outcomes favorable to crypto interests.
Coinbase’s chief policy officer, Faryar Shirzad, clarified that their contributions to Fairshake aim to advocate for the industry’s priorities in elections, emphasizing the industry’s evolving political engagement.
The primary legislative goals of crypto giants include reducing oversight from the Securities and Exchange Commission (SEC), which has been actively litigating against major players in the crypto industry. Regulatory challenges, including allegations of securities law violations and failure to register properly, pose significant risks to platforms like Coinbase. The industry has rallied support around legislative efforts that favor oversight by the Commodities Futures Trading Commission (CFTC), which has garnered bipartisan interest in the Senate.
Fairshake’s strategy involves targeting key reelection races, including those of Brown and Tester, although specific spending commitments have not been disclosed yet. The aggressive political spending by crypto entities marks a stark contrast from their tumultuous reputation just a year ago, highlighting their rapid transformation into influential political players in Washington.
Overall, the expanding influence of the crypto industry underscores its strategic approach to shaping regulatory landscapes through targeted electoral support, reflecting a proactive stance in navigating complex regulatory environments.
