A heavily financed political action committee (PAC), supported by prominent figures within the cryptocurrency sector, is targeting crucial Senate contests with the aim of potentially altering the Congressional power balance.
Known as Fairshake, this PAC recently invested over $10 million to effectively oppose a Democratic candidate for the U.S. Senate in California. Its next focus lies on pivotal races in Ohio, Montana, Maryland, and Michigan.
With an impressive $85 million in backing, Fairshake has garnered substantial support from major crypto entities such as Coinbase, Ripple Labs, and Andreessen Horowitz. Its strategy involves directing resources towards the general elections in Ohio and Montana, as well as the Democratic primaries in Maryland and Michigan.
These states hold particular significance due to incumbent Democratic senators facing re-election, some of whom have previously expressed skepticism or raised concerns about cryptocurrencies.
Fairshake is directing its efforts towards senators who have expressed opposition to cryptocurrencies.
In December 2022, Senator Sherrod Brown of Ohio proposed a nationwide ban on cryptocurrencies in response to the collapse of FTX. Likewise, Senator John Tester of Montana has expressed skepticism about cryptocurrencies, stating that he sees no justification for their existence. Despite these positions, Fairshake has not explicitly declared opposition to these senators. Instead, the PAC has signaled its intention to engage in their respective races. This suggests that Brown and Tester could potentially receive support from Fairshake if they adopt more crypto-friendly stances.
Fairshake has not provided a specific timeline for deciding which candidates to endorse in the Ohio and Montana races. However, it has emphasized that it will consider various factors, including a candidate’s stance on cryptocurrency, viability, the significance of the election, and the potential impact of the PAC’s involvement.
In Michigan, Fairshake will participate in the Democratic Senate primary scheduled for August. Congresswoman Elissa Slotkin currently leads the race, although she has not extensively discussed cryptocurrency publicly. She has, however, acknowledged the importance of politicians disclosing their cryptocurrency trades. Slotkin’s opponents include actor Hill Harper, who previously launched an app to encourage people of color to engage with cryptocurrencies.
Fairshake will also be involved in Maryland’s May Democratic Senate primary, where candidates David Trone, co-founder of Total Wine, and Angela Ashbrooks, a local politician, are competing. Neither candidate has prominently addressed cryptocurrency on their campaign websites or made public statements on the subject.
The influence of a Crypto PAC could have a significant impact on the power dynamics within the United States.
With Democrats maintaining a slim 51-49 majority in the Senate, any changes in the outcomes of these four races could wield significant influence over the power dynamics in Washington.
Benefiting from substantial backing from the cryptocurrency industry, Fairshake is striving to ensure that candidates elected in November will champion the establishment and implementation of much-needed regulations for the cryptocurrency sector.
According to reports, around 73% of US voters believe that presidential candidates should possess a well-informed perspective on cutting-edge technologies such as artificial intelligence (AI) and cryptocurrency. Similarly, a recent study by Coinbase highlighted the potential impact of California voters who own cryptocurrencies on the 2024 elections. The report indicates that 78% of crypto holders in the state advocate for policymakers to endorse “new, innovative, and disruptive technologies” and express their intent to support candidates who align with these principles.
