The cryptocurrency industry is intensifying its political activities following the defeat of a key crypto-friendly bill, targeting Democratic candidates ahead of the November midterm elections. Fairshake, a super PAC backed by prominent Silicon Valley financiers, has announced plans to launch a $30 million advertising campaign against former Senator Sherrod Brown of Ohio, who is seeking a return to the Senate.
Brown, a Democrat and longtime critic of the crypto sector, was a leading figure on the Senate Banking Committee before losing his seat in 2024. Fairshake’s previous efforts to unseat him are credited by some Republicans as a factor in their election success last year. With the crypto sector’s regulatory prospects dimming under Democratic control after last week’s failure to pass the Clarity Act—a legislative attempt to prevent a future crackdown—the industry is shifting its focus towards candidates perceived as unfavorable.
Fairshake projects significant spending in both House and Senate races this cycle, with an overall war chest exceeding $120 million when factoring in two affiliated groups, as indicated by recent federal filings. While the group has supported candidates from both parties historically, its current spending is expected to favor Republicans significantly, reflecting the party’s generally more accommodating stance toward crypto regulation. President Joe Biden’s administration had faced resistance on crypto legislation, with some industry leaders highlighting the more laissez-faire approach of GOP lawmakers.
Sherrod Brown has notably softened his public stance on crypto during his current campaign. In an interview last month, Brown stated he was not “outspoken against crypto” this cycle and emphasized that while crypto has a role in the economy, he opposed the industry writing its own regulations. His campaign manager, Patrick Eisenhauer, responded to the news of the forthcoming Fairshake ads by emphasizing Brown’s commitment to challenging “the rigged system” benefiting special interests.
Despite Fairshake’s belated mobilization, some Republican operatives expressed frustration that the PAC had not moved earlier against Brown. The new campaign, set to begin on Tuesday, will involve both televised ads and mailers criticizing the former senator. Brown’s Republican opponent, Senator Jon Husted, already holds a substantial financial edge, with Republican spending on ads in Ohio outpacing Democratic efforts by an estimated $30 million.
Fairshake’s mixed record in the 2024 primaries includes supporting nominees from both parties: a Republican Senate candidate in Alabama, a Democratic House candidate in Maryland, and unseating a Democratic House incumbent in Texas. However, the group faced setbacks in some contests, such as the Illinois Senate Democratic primary.
The defeat of the Clarity Act last week saw unanimous opposition from Senate Democrats, even from those previously backed by Fairshake such as Michigan’s Elissa Slotkin and Arizona’s Ruben Gallego. Some Republicans, including vulnerable Senator Susan Collins of Maine, also opposed the legislation. Several major donors to Fairshake, including Ripple CEO Brad Garlinghouse and crypto investor Tyler Winklevoss, expressed frustration with Democrats’ refusal to support the bill, signaling a decline in the industry’s willingness to pursue bipartisan cooperation.
Within Republican circles, some figures close to the crypto sector privately blame their party for acquiescing to bipartisan negotiation strategies employed by Senate Democrats—a tactic perceived as aimed at delaying Fairshake’s spending efforts. Reports indicate that Senate Minority Leader Chuck Schumer warned Democrats in early 2024 about the risks of alienating the crypto super PAC. The unfolding political maneuvers underscore the cryptocurrency industry’s growing involvement as a force in shaping the midterm election landscape.