JACKSON HOLE, Wyo. – A leading pro-cryptocurrency political group has poured millions into high-profile Michigan and Arizona Senate races to support Democrats against candidates endorsed by Donald Trump, angering Republicans who view the industry as an ally rather than an ally. competitor.
Fairshake PAC and its affiliated super PACs are pouring millions into advertising spending to influence three U.S. Senate races this cycle, and have announced commitments of about $3 million each to Arizona Democratic candidates Ruben Gallego and Elisa Slotkin. A candidate in Michigan said on Wednesday.
The spending risks bolstering GOP efforts to secure seats in two key battleground states in the race for control of the Senate, and top Republicans have used their political capital — amid a hostile regulatory environment — to forge closer ties to the cryptocurrency industry.
When asked for comment, Fairshake referred NBC News to Slotkin and Gallego’s current A ratings from Stand With Crypto, a nonprofit group that advocates for the crypto industry. This year, both Democrats crossed party lines to support a historic cryptocurrency draft law.
For years, Slotkin had been skeptical of cryptocurrency until his apparent change of heart in recent months. The Michigan lawmaker earned an F rating from Stand With Crypto in March.
Facing Republican Kari Lake, Gallego has failed to support legislation supported by the crypto industry in the past, and in 2022, praised the candidate who “killed the Crypto beast” on social media. Last year, Gallego signed a letter led by Sen. Elizabeth Warren, D-Mass., to address cryptocurrency-financed reforms, and cast him as an “outspoken advocate for crypto regulation and oversight.” He also criticized business owners like Elon Musk To “push Bitcoin”. and has profited from cryptocurrency and signed legislation that was viewed as hostile by the industry in past years.
Lake has earned an A rating from Stand With Crypto for its strong statements of support for the industry and is rated “very crypto”.
Fairshake spokesman Josh Vlasto said in a statement that the super PAC and its affiliates are “working to support candidates who embrace innovation, want to protect American jobs and are committed to working across the aisle to get things done.”
The cryptocurrency industry and its aligned super PACs have raised more than $100 million to spend in House and Senate races, part of an effort to shape a favorable regulatory landscape by bolstering crypto-friendly candidates. In Ohio alone, the group is targeting $12 million to support a Republican Senate candidate to oust Democratic Sen. Sherrod Brown, chairman of the powerful Banking, Housing and Urban Affairs Committee, who is viewed as a cryptocurrency skeptic by industry supporters.
Fairshake is a leading PAC funded by digital asset firms, with the most significant contributions coming from a handful of donors: blockchain firm Ripple; individual donors associated with venture firm Andreessen Horowitz; and Coinbase, the largest US cryptocurrency exchange.
Republican operatives making the case for cryptocurrency say it’s a growth industry the party is embracing for good reason, and those efforts will continue to pay off over time.
“The world has changed since Trump’s first term,” said Matt Mackowiak, a GOP strategist based in Austin, Texas. “Smart Republicans saw this opportunity and jumped on it. And this has many advantages: First, it is a source of fundraising. Second, it’s a way to get votes from a younger demographic. “Thirdly, this is an issue that could create a conflict with the Democrats and make the Republicans the party of the future.”
Now, simmering tensions are clearly brewing as top supporters of Fairshake, its affiliated super PACs, and Republicans become alarmed by growing suspicion. They warn that the groups risk losing credibility with Republicans as they work to cultivate hard-won relationships, and question the durability of Gallego and Slotkin’s support.
“It’s reminiscent of when the Chamber of Commerce funded a group of anti-business House Democrats who pushed through a massive tax hike on business through a law called the Inflation Reduction Act,” said a top GOP Senate aide. “Now the Chamber of Commerce can’t even go to a meeting with House Republican Leadership to discuss their priorities.”
Republicans in Congress and the Chamber of Commerce have been at loggerheads in recent years after the business lobby group clashed with Republicans over its failure to support immigration reform and stop Trump’s tariffs, both positions the group felt hurt American business. The House announced its willingness to back Democrats, a move unthinkable under Obama and angering many Republicans on the Hill.
The aide continued: “It’s surprising that everyone who advises Fairshake comes up with the same flawed strategy.”
One GOP strategist involved in the Senate race warned that the spending spree would also hurt Trump as his allies came under attack.
“Coinbase and Fairshake are trying to be toxic to Republicans. Spending against the two primary GOP candidates could jeopardize the Senate and hurt Trump,” said the source, who was not authorized to speak publicly so as not to get ahead of the former president. “Gallego and Slotkin voted against bitcoin interests and will vote to confirm a far-left SEC chairman. It doesn’t make any sense.”
Spending was a hot topic of conversation as Republicans descended on Jackson Hole this week, along with representatives from Marc Andreessen and Coinbase and other cryptocurrency groups, to attend a series of retreats hosted by the Republican Congressional Leadership Fund super PAC and House Speaker Mike Johnson. . There is Andreessen and his business partner Ben Horowitz confirmed Trump has criticized the Biden-Harris administration’s deregulation agenda and promise to tax unrealized capital gains in the presidential race. Andreessen and Horowitz are among Fairshake’s together most important donors.
“Republicans are WTF with what’s going on with Fairshake, and I think it’s a pretty bad sign for the industry, people are wondering why our main trade union is turning its arsenal on our friends,” said one industry leader on condition of anonymity. speak freely. “A lot of people walk around the CLF conference wondering if this is a strategic chess move by the industry.”
A prominent member of “Trumpworld” likened the support to “a pro-Israel group that gives money to the Squad.” A source familiar with the comments, who was not authorized to speak publicly, said the comparison suggested Fairshake was supporting a cohort hostile to its interests.
Trump has promised to implement crypto-friendly policies if elected, which resulted in a shift in his position at the White House when he criticized Bitcoin as “highly volatile and weather-based.” Trump’s campaign is now accepting Bitcoin donations, and his selection of running mate JD Vance has been hailed as a win for the industry. Vance called for looser regulation of cryptocurrency announced that his assets include $250,000 to $500,000 worth of bitcoins.
Mackowiak said the shift is partly generational, with Vance credited with convincing a group of Silicon Valley investors to host Trump on his popular podcast and to hold a meeting. Fundraiser in San Francisco made millions.
A former Trump regulator said the incoming Trump administration would invite “a more nuanced approach to regulation” around cryptocurrency, but regulatory change is expected regardless of who wins the presidential race. “If you have a Trump presidency, it’s going to be faster.”
After clinching the Democratic nomination, Vice President Kamala Harris began seeking a “reset” with the crypto industry, with executives from Coinbase, Ripple and Kraken voicing their concerns to the White House during a Zoom call. according to to Bloomberg. Democrats have launched the group Crypto4Harris, which seeks to formalize the industry’s ties to the presidential candidate. Top Harris surrogates also point to a more open environment if he wins in November, with Maryland Gov. Wes Moore promising in a recent CNBC interview that Harris would offer a more business-friendly regulatory framework than the one under Biden.
Many are still skeptical, the former regulator said.
“The big political question here is, can Harris convince industry supporters that he’s done a 180, or is it just talk?” he said. “Because they’re not going to believe he’s going to get past Elizabeth Warren.”