Crypto donors navigate midterm spending dilemma after Senate bill defeat
COIN•Crypto donors are weighing whether to punish Democrats or preserve bipartisan ties after Senate Democrats helped block the Clarity Act. The industry spent more than $300 million backing candidates in the current and previous election cycles, while crypto super PAC Fairshake began the year with $193 million.
1. Spending strategy in question
After the Senate bill defeat, crypto donors are debating whether to reward Republicans who supported the Clarity Act or maintain relationships with Democrats. Executives warned that making the midterms a referendum on the bill could undermine years of bipartisan relationship-building.
2. PACs target Senate races
Fairshake, backed by Coinbase and Ripple, said it would support 32 House candidates from both parties and has spent on 57 races this cycle. It has not announced a Senate strategy. In Ohio, Fairshake is spending $30 million opposing Sherrod Brown's bid to return to the Senate; the Digital Freedom Fund is spending $3 million opposing Brown and supporting Republican Senator Jon Husted.
3. Allies and political risks
Some executives say the industry may focus on supporting pro-Clarity candidates in either party. Democratic Senators Cory Booker and Mark Warner, who opposed the bill over its limits on officeholders' crypto dealings, are viewed by the industry as allies. A Democratic-led Senate could also give Democrats committee oversight powers they plan to use to probe crypto companies with ties to Donald Trump.
