As the US elections approach, crypto billionaires have reportedly amassed a staggering $160 million war chest to support candidates supporting favorable digital asset industry regulations.
This influx of funds positions the industry as one of the most influential players in federal campaign finance, with the potential to sway the outcome of Senate races and even determine the majority party.
Crypto Giants’ Fight For Regulatory Reform
According to a Bloomberg report, the industry’s political action committee (PAC), Fairshake, along with affiliated groups, has witnessed a rapid surge in funding in recent weeks, thanks to major contributions from prominent players such as Ripple Labs, Andreessen Horowitz, and Coinbase Global.
Notable figures like Cameron Winklevoss and Tyler Winklevoss, co-founders of Gemini exchange, also made substantial donations earlier this year.
The CEO of Coinbase, Brian Armstrong, whose net worth has skyrocketed alongside the crypto market’s resurgence, has actively called for the support of lawmakers who back digital assets.
Crypto giants aim to diminish the oversight imposed by the Securities and Exchange Commission (SEC), which has initiated lawsuits and imposed significant fines on major cryptocurrency players.
Gary Gensler, the chair of the SEC, has openly criticized the industry, highlighting concerns of “fraud and inadequate customer asset protection.” Platforms like Coinbase, which faced legal action from the SEC for alleged securities law violations, have much at stake if the regulator’s stance prevails.
Pressure Mounts On Brown And Tester In Senate Races
Per the report, Fairshake’s political influence is expected to focus on the reelection campaigns of Senators Sherrod Brown and Jon Tester. As the only two Democratic incumbents running in states won by Donald Trump in the previous election, they are vulnerable to Republican challenges.
The pressure on Senators Sherrod Brown and Jon Tester is mounting as they face scrutiny from both sides of the crypto debate. Brown, who received an “F” grade on a digital advocacy website promoted by Coinbase CEO Brian Armstrong, is challenged by Bernie Moreno, a Republican candidate known for his crypto advocacy.
On the other hand, Tester is labeled as fairly neutral on the issue but is targeted by his opponent, Tim Sheehy, who accuses Tester of attempting to stifle crypto innovation.
The Democratic-led Senate, thus far, has not taken action on industry-friendly digital regulation bills, which the Republican-controlled House approved in May. However, Senator Debbie Stabenow of Michigan has shown support for legislation to regulate crypto assets through the Commodities Futures Trading Commission (CFTC), which has a significantly different approach to innovation and regulation of the industry.
Ultimately, the crypto industry’s $160 million war chest has catapulted it into a prominent position in US campaign finance. It can potentially shape the outcome of Senate races and influence the trajectory of crypto regulations.
With the reelection campaigns of Senators Sherrod Brown and Jon Tester at the center of attention, the battle between crypto billionaires and skeptics will determine the industry’s fate in the halls of power.
Featured image from DALL-E, chart from TradingView.com