Crypto’s political influence is set to grow in 2024, as the industry pours significant resources into congressional elections, with a focus on Senate and House of Representatives races rather than the presidential contest between Kamala Harris and Donald Trump.
Crypto’s War Chest: $119 Million, but Not for the Presidency
In 2024, Fairshake, the industry’s largest super PAC, has raised an astounding $119 million primarily from corporate crypto donors. However, most of this money is not aimed at the presidential race. Instead, the PAC is focusing on down-ballot contests—races for seats in the Senate and House of Representatives, particularly those involving crypto supporters versus crypto skeptics.
For example, one major race to watch is between Senator Sherrod Brown (D-OH), a crypto skeptic, and Bernie Moreno, a Republican challenger and blockchain firm founder. This is a critical battle for the industry, as US laws governing crypto are shaped and amended in Congress.
Why Down-Ballot Races Matter
The industry’s focus on congressional races is strategic. According to Lauren Belive, Ripple’s head of US policy, the election is about supporting candidates who understand the importance of innovation in the US economy. The Senate and House of Representatives play a pivotal role in crypto regulation, and changes to laws affecting blockchain and digital assets often come from these chambers.
Ron Hammond, director of government relations at the Blockchain Association, emphasized that policy battles for the industry are fought in Congress, not the White House. Many issues related to crypto regulation require updating laws dating back decades, and Fairshake’s bipartisan approach is designed to appeal to both parties.
Crypto PAC’s Influence: A Major Player in Political Spending
With corporations now able to spend unlimited sums on elections, as per the 2010 Citizens United ruling, crypto corporations are among the largest corporate political spenders in 2024. According to Rick Claypool, research director at Public Citizen, crypto is now the second-largest corporate spender, trailing only fossil fuel corporations.
Key Congressional Races for Crypto
The Ohio Senate race is a critical contest for the crypto industry. Fairshake is spending $12 million to support Bernie Moreno, aiming to unseat Sherrod Brown, a crypto opponent. As Perianne Boring, CEO of the Digital Chamber, noted, Brown has long been a roadblock for crypto legislation in the Senate, including blocking the Lummis-Gillibrand Responsible Financial Innovation Act (S.2281).
However, Fairshake is not solely backing Republicans. In Arizona and Michigan, it has announced $3 million in support of Democratic candidates Ruben Gallego and Elisa Slotkin. The PAC’s bipartisan spending strategy includes ads for both Democratic and Republican candidates, ensuring a broad political reach.
The Importance of Committee Chairs
The control of congressional committees is crucial for the future of crypto legislation. George Leonardo, founder of Cap Hill Crypto, explained that the party in power will have the ability to select committee chairs, who play a significant role in crafting policy and shaping future crypto regulations.
Currently, House Financial Services Chair Patrick McHenry has prioritized digital assets, while Senate Banking Committee Chair Sherrod Brown has been resistant to crypto-related legislation. If Democrats flip the House, Maxine Waters could become Chair of the Financial Services Committee, pushing bipartisan stablecoin legislation. On the Senate side, a Republican majority could lead to more crypto-friendly legislation.
Speculations on Key Senate Races
- Elizabeth Warren, a prominent anti-crypto voice, could become the top Democrat on the Senate Banking Committee if Sherrod Brown loses, creating potential challenges for crypto policy.
- In Massachusetts, Warren faces Republican John Deaton, a vocal crypto supporter, making this race important for anti-crypto forces.
- Pennsylvania’s Senate race features Bob Casey versus Dave McCormick, with McCormick being a strong crypto advocate.
Each of these races will help define the future of crypto legislation in the US.
Does the Presidency Matter for Crypto?
While congressional control is vital, the presidency will still have a significant impact on crypto’s future. As Perianne Boring noted, Donald Trump’s pro-crypto platform could potentially lead to major changes in crypto regulation if he wins. Conversely, Kamala Harris has not yet outlined a clear stance on digital assets, leaving uncertainty around Biden/Harris administration policies.
George Leonardo of Cap Hill Crypto also pointed out that the White House will play a pivotal role in crypto policy by appointing key officials at the Treasury Department, Securities and Exchange Commission (SEC), and Commodity Futures Trading Commission (CFTC). These agencies have a significant impact on the legal environment in which crypto builders and users operate.
Why Fairshake Hasn’t Endorsed a Presidential Candidate
Despite the critical importance of the presidency, Fairshake has refrained from endorsing any presidential candidate. This strategic neutrality allows the PAC to maintain leverage in Congressional races while avoiding alienating either party. Rick Claypool suggests that Fairshake’s bipartisan stance is key to its ability to influence congressional elections and potentially shift the balance of power in the House and Senate.
With narrow partisan divides in Congress, crypto’s political spending could have a major impact on the upcoming 2024 election, helping to tip control toward one party or the other.
