A Crypto Super PAC Aims to Change the Balance of Power in Congress
A well-funded political action committee (PAC) known as Fairshake, which has received significant financial backing from prominent figures in the cryptocurrency industry, is targeting key Senate races with the goal of potentially shifting the balance of power in Congress. The PAC recently spent over $10 million to oppose a Democratic U.S. Senate candidate in California and now plans to concentrate its efforts on races in Ohio, Montana, Maryland, and Michigan. With a massive $85 million in funding primarily from major crypto players Coinbase, Ripple Labs, and Andreessen Horowitz, Fairshake intends to allocate resources to general elections in Ohio and Montana, as well as the Democratic primaries in Maryland and Michigan.
Fairshake Targets Senators Critical of Cryptocurrencies
In Ohio, Senator Sherrod Brown proposed a nationwide ban on cryptocurrencies following FTX’s collapse in December 2022. Similarly, Montana’s Senator John Tester has been dismissive of crypto and sees no reason for its existence. While Fairshake has not explicitly announced opposition to these senators, it has indicated its intention to participate in their races. This suggests that Brown and Tester could potentially earn the PAC’s support if they adopt more crypto-friendly positions. Fairshake has not disclosed the timeline for deciding which candidates to endorse in the Ohio and Montana races but emphasized that it would evaluate various factors such as a candidate’s stance on crypto, viability, election significance, and the potential impact of the PAC’s involvement.
In Michigan, Fairshake will engage in the Democratic Senate primary set for August. Congresswoman Elissa Slotkin currently leads the race, and while she has not extensively discussed crypto, she has acknowledged the need for politicians to disclose their cryptocurrency trades. Her opponents include actor Hill Harper, who previously launched an app to encourage people of color to engage with cryptocurrencies. In Maryland’s May Democratic Senate primary, Fairshake will also participate, with candidates David Trone, co-founder of Total Wine, and Angela Ashbrooks, a local politician, facing off. Neither candidate has prominently addressed crypto on their campaign websites or made public statements on the subject.
Crypto PAC Could Significantly Impact US Power Dynamics
With Democrats holding a narrow 51-49 majority in the Senate, any shifts in these four races could significantly impact the power dynamics in Washington. Fairshake aims to ensure that candidates elected in November will advocate for the establishment and adoption of much-needed regulations for the cryptocurrency industry. A recent report from Coinbase revealed that approximately 73% of US voters believe that US presidential candidates should have an informed perspective on innovative technologies like artificial intelligence (AI) and cryptocurrency. Furthermore, California voters who own cryptocurrencies are expected to have a significant impact on the 2024 elections, with 78% of crypto holders in the state expressing their intention to vote for candidates who support “new, innovative, and disruptive technologies.”
Hot Take: Crypto Industry Flexes Political Muscle
The emergence of Fairshake as a well-funded crypto super PAC demonstrates the growing influence and political muscle of the cryptocurrency industry. By targeting key Senate races and supporting candidates who are more favorable towards cryptocurrencies, Fairshake aims to shape legislation and regulations that will benefit the industry. With its massive funding from major crypto players, Fairshake has the potential to significantly impact the balance of power in Congress. As the industry continues to gain prominence and attract more attention from lawmakers and regulators, it is crucial for crypto enthusiasts to actively engage in the political process to protect their interests and ensure a favorable regulatory environment.
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