Crypto bets big on Republicans in congressional races
Add Axios as your preferred source to
see more of our stories on Google.
Groups trying to elect pro-crypto candidates to Congress are set to spend $21 million more on ads to boost Republicans than they'll spend on Democrats in the run-up to the Nov. 5 election, Axios has learned.
Why it matters: The crypto industry is proving to be a new, formidable force in this year's elections, dropping tens of millions of dollars on races that could decide which party will control Congress.
- The industry has been cultivating lawmakers in both parties, with its main PAC — Fairshake — endorsing equal numbers of candidates on each side.
- But the tens of millions of campaign ad dollars flowing from its affiliate super PACs point to the GOP as the preferred party among the crypto set.
By the numbers: Since Jan. 1, Fairshake and affiliated PACs have spent $54.6 million to run and reserve election ads backing Republican candidates, and $33.7 million on ads boosting Democrats, according to AdImpact.
- That's 62% more spent on ads for Republicans than Democrats.
What to watch: Fairshake just raised an additional $800,000 from blockchain developmment firm ConsenSys Software, Inc., in September, according to a new FEC filing.
- That means the crypto industry could spend even more in the crucial final two weeks before Nov. 5.
- With several key Senate and House races expected to be nail-biters, any last minute rush of influence ads could make a difference.
Zoom in: Crypto's No. 1 focus? The Ohio Senate race.
- Crypto groups linked to Fairshake have dropped more than $40 million during this election cycle to back Republican challenger Bernie Moreno. The investment could be paying off — Moreno has been up in recent polls.
- Fairshake is aiming for a two-fer in the election: It's trying to help Moreno — a blockchain entrepreneur — defeat Sen Sherrod Brown, a Democrat who's been a critic of the crypto industry.
Flashback: Fairshake's funding comes primarily from major crypto companies such as Coinbase and Ripple, and from venture capitalists known for investing in the sector. It has made it clear that it's ready to punish candidates who are unfriendly to crypto.
- Its war chest helped knock out Democratic primary candidates Rep. Katie Porter (Calif.) (who ran for Senate), Rep. Cori Bush (Mo.) and Rep. Jamaal Bowman (N.Y.).
The other side: Protect Progress, the Fairshake-affiliated PAC for Democrats, is supporting two competitive Democratic Senate candidates this cycle —Rep. Ruben Gallego in Arizona and Rep. Elisa Slotkin in Michigan.
- It has also contributed to 15 House candidates, according to OpenSecrets.
- Defend American Jobs, the Republican counterpart, has supported four Senate candidates and 12 House candidates this cycle, according to OpenSecrets.
- Fairshake itself has supported candidates on both sides.
What they're saying: "I think a slightly Republican Senate would be good because it neutralizes Elizabeth Warren's ability to influence," Kristin Smith, CEO of the Blockchain Association, told Axios during an interview at an industry event in October.
- Warren, a Massachusetts Democrat, has been seen as the crypto industry's most vocal opponent and is likely to be the senior Democrat on the Banking Committee if Brown loses to Moreno.
