CoinDesk
Three leading crypto super PACs spent nearly $170 million in congressional midterm races, with most of their high-profile spending favoring Republicans or opposing Democrats. Fairshake and its affiliates accounted for $154 million in spending and retained a $56 million reserve for the next election cycle.
Why it matters
The spending puts crypto among the biggest industry players in the election, funding advertising, mailers and other independent efforts to influence voters. Fairshake, largely backed by Coinbase, a16z and Ripple Labs, has framed its activity as support for pro-crypto candidates in both parties. The Winklevoss-backed Digital Freedom Fund focused its general-election spending on blocking Democratic Senate challengers, while the Fellowship Fund, funded by Cantor Fitzgerald and closely tied to Tether, backed Republicans before adding three Democratic endorsements.
The strategy has not amounted to a simple party-wide split. Crypto PACs have favored Republicans overall, but Fairshake has also spent millions on Democrats, mainly in primaries. Their spending was not used to punish lawmakers over the stalled Digital Asset Market Clarity Act, nor to reward lawmakers who tried to negotiate it.
Market impact
Fairshake and its affiliates devoted almost $56 million to opposing former Democratic Senator Sherrod Brown in Ohio and nearly $11 million to bolster Republican incumbent Pete Ricketts in Nebraska. The Digital Freedom Fund also concentrated heavily on opposing candidates, including spending more than twice as much against James Talarico in Texas as it spent supporting Ken Paxton.
Election results could shape control of Congress and its legislative agenda, but they do not guarantee crypto legislation. Any major bill, including a renewed market-structure measure or crypto tax legislation, would need strong Democratic support to reach the Senate's 60-vote threshold.
Frequently asked questions
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How much did the three leading crypto PACs spend in the midterm races?
They spent nearly $170 million combined. Fairshake and its affiliates accounted for $154 million.
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How much money does Fairshake have for the next election cycle?
Fairshake retained a $56 million reserve for the next cycle.
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Did crypto PAC spending go exclusively to Republican candidates?
No. The PACs favored Republicans overall, but Fairshake also spent millions on Democrats, mainly in primaries. The Fellowship Fund added three Democratic endorsements.
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What role did the Digital Freedom Fund play in the races?
The Winklevoss-backed PAC focused on opposing Democratic Senate challengers, including spending more than twice as much against James Talarico in Texas as it spent supporting Ken Paxton.
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Why might Republican election wins not be enough to pass major crypto bills?
Major legislation would still need strong Democratic support to clear the Senate's 60-vote threshold, according to the article.
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