Crypto Industry Spends Big on U.S. Congressional Races, Sees Success

Crypto Industry’s Political Investment Pays Off in U.S. Elections

WASHINGTON, Nov 8 (Reuters) – The cryptocurrency industry, including major players like Coinbase and Ripple, significantly increased its political spending in the recent U.S. congressional elections, earmarking over $119 million to support candidates expected to champion crypto-friendly legislation.

This considerable investment appears to have been successful, with many of the industry’s favored candidates winning their respective races, potentially ushering in a Congress more supportive of digital assets than ever before.

Much of the sector’s spending came via political action committees (PACs), which can spend unlimited amounts of money. Fairshake, a prominent PAC focused on backing candidates with favorable views on cryptocurrency, reportedly spent over $40 million during the election cycle, according to data from OpenSecrets.

The spending data was compiled from OpenSecrets and the Federal Election Commission.

Here’s a breakdown of the races where the crypto industry spent the most money, along with the results:

1. Ohio Senate: (R) Bernie Moreno vs. (D) Sherrod Brown (incumbent) The cryptocurrency industry invested the largest sum in the Senate race, spending $40.2 million to support Republican Bernie Moreno, who ran against incumbent Sherrod Brown. Moreno prevailed against Brown, Edison Research projected, marking one of the most expensive Senate races in U.S. history and ousting a vocal critic of the crypto sector. Brown has expressed concerns regarding the use of cryptocurrencies in financing terrorism, while Moreno, who founded a blockchain-based company, has stated he will lead the fight to defend crypto in the Senate. Moreno received contributions from Defend American Jobs, an affiliate of Fairshake, as well as Coinbase CEO Brian Armstrong and Gemini co-founders Cameron and Tyler Winklevoss. A Trump supporter stands near the Capitol Reflecting Pool in Washington, D.C., on the day U.S. President Elect Donald Trump was declared the winner of the presidential election.

2. Michigan Senate: (R) Mike Rogers vs. (D) Elissa Slotkin Crypto spent approximately $10 million in support of Elissa Slotkin’s campaign for a vacated Senate seat. Contributions came from Protect Progress, an affiliate of Fairshake, as well as Ripple executive chairman Chris Larsen. Slotkin narrowly won the race, according to Edison Research. In Congress, Slotkin voted in favor of repealing a crypto-related accounting bulletin from the Securities and Exchange Commission and a bill from Republican House Financial Services Committee Chair Patrick McHenry that would create a regulatory framework for crypto assets.

3. Arizona Senate: (R) Kari Lake vs. (D) Ruben Gallego Protect Progress, along with individual donors like Coinbase’s Armstrong and Andreessen Horowitz general partners Chris Dixon and Ben Horowitz contributed $10 million towards Ruben Gallego’s campaign for an Arizona Senate seat. Gallego voted in alignment with Slotkin on the House’s crypto-related legislation. The outcome of this race has not yet been declared.

4. Massachusetts Senate: (R) John Deaton vs. (D) Elizabeth Warren (incumbent) The crypto industry contributed $4.2 million to support John Deaton in his campaign against Senator Elizabeth Warren, who has frequently criticized leaders in the digital assets sector. Warren, the incumbent, secured re-election according to Edison Research. Senator Warren has advocated for stringent anti-money laundering standards for cryptocurrencies and has voiced concerns regarding the crypto sector’s willingness to comply with financial regulations, similar to traditional banking institutions. Following the loss of Sherrod Brown in Ohio, Warren could potentially become a leading Democrat on the Senate Banking Committee.

5. West Virginia Senate: (R) Jim Justice vs. (D) Glenn Elliott The crypto sector spent $3 million to support former West Virginia governor Jim Justice’s Senate bid, with funding led by Defend American Jobs, Armstrong, and the Coinbase Inc Innovation PAC. Justice secured the Senate seat, according to Edison Research. On his website, Justice expressed enthusiasm for the potential of crypto and blockchain innovation, and he supports a regulatory framework that enables entrepreneurs to innovate and flourish. He stated this earlier in the year.

6. Indiana Senate: (R) Jim Banks vs. (D) Valerie McCray Individual donors including Armstrong, Horowitz, and Dixon, in conjunction with the Coinbase Inc Innovation PAC and Defend American Jobs, spent $3 million to support Republican Indiana Senate candidate Jim Banks. Banks secured the Senate seat, according to Edison Research and the Coinbase Inc Innovation PAC. Banks had previously supported crypto-backed legislation in Congress.

7. California 45th Congressional District: (R) Michelle Steel (incumbent) vs. (D) Derek Tran The crypto industry invested $2.8 million to support Representative Michelle Steel’s campaign for re-election. Steel had supported legislation to repeal the U.S. Securities and Exchange Commission’s accounting bulletin and establish a regulatory framework for cryptocurrencies. The outcome of the race has not yet been determined.

8. Alabama 2nd Congressional District: (R) Caroleene Dobson vs. (D) Shomari Figures Crypto contributed $2.6 million to support Shomari Figures’ congressional race for a new district in Alabama. Figures won by a significant margin, according to Edison Research’s projection. This total includes contributions from Protect Progress, the Winklevoss twins, Armstrong, and the Coinbase Inc Innovation PAC. Figures signed a letter from Democrats requesting the Democratic National Committee to soften its stance on crypto. On his website, Figures said that he would embrace digital assets to encourage innovation and technological advancement.

9. North Carolina 1st Congressional District: (R) Laurie Buckhout vs. (D) Donald Davis (incumbent) Individual donors, including Armstrong, Larsen, and the Winklevoss twins, along with Fairshake, contributed $2.3 million in the primary campaign on behalf of Representative Donald Davis’ re-election bid, which he won according to Edison Research. Davis has shown his support for the crypto industry by voting in favor of the related bills in Congress.

10. Colorado 8th Congressional District: (R) Gabe Evans vs. (D) Yadira Caraveo (incumbent) The cryptocurrency industry spent $2.3 million to support Yadira Caraveo’s congressional campaign in Colorado. Caraveo serves as the ranking member on the House Agriculture Committee’s subcommittee on commodity markets, digital assets and rural development. The result of the election is still pending.