Crypto PAC Fairshake Flexes Its Muscle in 2024 Elections

Fairshake, a political action committee representing cryptocurrency interests, is poised to spend over $40 million in the final weeks of the 2024 US elections, after already deploying $140 million on dozens of Congressional races nationwide. The PAC's bipartisan approach has rattled some candidates, particularly incumbent Democratic Senator Sherrod Brown of Ohio, who chairs the Senate Banking Committee.

Crypto Industry Flexes Its Political Muscle

Funding a Bipartisan Effort

Fairshake, funded by industry heavyweights like Coinbase Global Inc., Ripple Labs, and Andreessen Horowitz, is taking a unique approach to its political spending. Rather than aligning solely with one party, the PAC has established two affiliated groups: Defend American Jobs, which supports Republicans, and Protect Progress, which backs Democrats. This bipartisan strategy aims to push candidates in both parties to take the crypto industry seriously.The PAC's influence has been felt across the country, with its mere presence sometimes enough to sway candidates. In Nevada's Senate race, for example, both candidates have added pro-crypto language to their campaign platforms, either as a bid for industry funding or an attempt to avoid becoming a target of Fairshake's spending.

Targeting Crypto Critics

Fairshake has not shied away from using its financial resources to target candidates who have been critical of the crypto industry. In California, the PAC spent $10 million to attack the integrity of Katie Porter, an early challenger for the state's empty Senate seat who had voted against pro-crypto bills. When Porter lost the primary to Representative Adam Schiff, the crypto industry saw it as a validation of its strategy to destabilize its enemies as much as to support its friends.The PAC has also taken partial credit for the primary defeats of New York Representative Jamaal Bowman and Missouri Representative Cori Bush, both of whom had voted against industry-backed legislation that would have limited Securities and Exchange Commission oversight of cryptocurrencies. Fairshake deployed $2 million against Bowman and $1.4 million against Bush.

Challenging Crypto Critics in Ohio

Perhaps no candidate has felt the full force of Fairshake's spending more than Sherrod Brown, the incumbent Democratic senator from Ohio and chair of the Senate Banking Committee. As a vocal critic of the crypto industry, Brown has been a target of Fairshake's efforts. The PAC has funneled some $40 million since August to support Republican challenger Bernie Moreno, who has since erased Brown's six-point lead and made the race too close to call.Moreno, a former car dealership owner who has since started a blockchain-based company to digitize car titles, has emerged as a pro-crypto candidate. Fairshake's spokesperson, Josh Vlasto of Defend American Jobs, has stated that the PAC's investment has put a "pro-crypto leader in a position to win" against one of the industry's leading critics.

Expanding Reach to House Races

As the 2024 elections draw closer, Fairshake has turned its attention to a series of close House races. True to its bipartisan approach, the PAC has thrown its support behind both a Republican, Michelle Steel of California, and a Democrat, Colorado's Yadira Caraveo.This strategy of backing candidates from both parties has defied the more traditional corporate political playbook, which has typically focused on pre-existing PACs or concentrated donations on candidates from a single party. Fairshake's approach, according to Rick Claypool of the nonprofit consumer advocacy organization Public Citizen, is "purely transactional and on specific policies" – a clear attempt to apply pressure on lawmakers to support the crypto industry.With tens of millions still in its coffers and the potential for additional funding from backers like blockchain software company ConsenSys, Fairshake's influence is likely to continue shaping the political landscape in the lead-up to the 2024 elections.