Main Points :
- $7.8 million spent by the “Protect Progress” Super PAC in support of Democratic candidates in Arizona and Michigan.
- PAC aims to secure wins for Reps. Ruben Gallego (Arizona) and Elissa Slotkin (Michigan).
- Protect Progress aligns with crypto-supportive PACs like “FairShake” and “Defend American Jobs.”
- Early voting begins in October in both Arizona and Michigan.
- The outcome of these Senate races may influence U.S. cryptocurrency regulations.
- Crypto companies like Ripple and Coinbase fund the PAC efforts, raising over $169 million for the 2024 election cycle.
The Crypto Industry’s Political Play
As the U.S. midterm elections approach, the involvement of the cryptocurrency sector in politics is becoming increasingly evident. With just 50 days until the election, crypto-backed political action committees (PACs) are ramping up their support for key Senate races. The “Protect Progress” Super PAC has committed $7.8 million to assist Democratic candidates in Arizona and Michigan. This investment is part of a broader strategy by cryptocurrency industry leaders to influence future regulatory frameworks that may shape the industry.
Crypto-Backed PACs Fuel Senate Races
$7.8 Million Allocated for Media Buys
According to filings submitted to the Federal Election Commission on September 14, the “Protect Progress” PAC, known for its ties to cryptocurrency interests, has invested $7.8 million to secure the election of two key Democratic Senate candidates: Ruben Gallego of Arizona and Elissa Slotkin of Michigan. Specifically, $4.1 million has been directed toward media buys for Gallego, who is vying to represent Arizona in the U.S. Senate. Meanwhile, $3.7 million has been allocated to support Slotkin’s Senate bid in Michigan.
Protecting Crypto-Friendly Candidates
Protect Progress is closely affiliated with other crypto-friendly PACs, such as “FairShake” and “Defend American Jobs.” These organizations share the common goal of promoting candidates who favor responsible cryptocurrency regulation. Notably, FairShake, backed by major cryptocurrency firms like Ripple and Coinbase, has raised more than $169 million for the 2024 election cycle. This substantial war chest has enabled them to launch significant campaigns in both primary and general elections.
Early Voting and Tight Contests
The State of the Races
In Arizona and Michigan, early voting begins in October, giving voters a head start before the November 5 general election. Recent polls suggest that both races are competitive, with Gallego holding a narrow 4-6 point lead over his far-right Republican opponent Kari Lake. In Michigan, Slotkin is similarly positioned, maintaining a slim 5-point advantage over her Republican rival, Mike Rogers.
These margins indicate that the outcome of these races could swing either way, making the contributions of PACs like Protect Progress crucial in the final weeks of the campaign.
Impact of Crypto PACs on Election Outcomes
Crypto PACs have already demonstrated their ability to influence close elections. For instance, in Arizona’s 3rd Congressional District, Democrat Yassamin Ansari narrowly won her primary by just 39 votes, thanks in part to over $1.3 million in support from Protect Progress. Similarly, in California, Rep. Katie Porter faced a significant challenge in her Senate primary, where FairShake spent $10 million on attack ads against her.
The Broader Implications for U.S. Crypto Regulation
Potential Shifts in Regulatory Power
The stakes of these elections are high not only for the candidates but also for the cryptocurrency industry. If candidates like Gallego and Slotkin win, it could shape the regulatory environment for digital assets in the U.S. for years to come. Crypto PACs like FairShake have pledged to support candidates who are committed to enacting balanced regulations, which would prevent overly restrictive policies while ensuring consumer protections.
Ripple and Coinbase Lead the Charge
FairShake, funded by industry giants Ripple and Coinbase, has focused its efforts on key battleground states. Their contributions to both primary and general election campaigns highlight the crypto industry’s determination to influence U.S. legislative decisions. As the industry continues to grow, its relationship with lawmakers will play a critical role in shaping the future of blockchain technology and cryptocurrencies.
Super PAC Strategy: Targeted Races and National Influence
PAC Focus on Specific Candidates
While some PACs, like FairShake, are engaged in national efforts, others are taking a more targeted approach. For example, the Commonwealth United Fund, another crypto-backed PAC, is focusing on the Massachusetts Senate race, where they have funded media buys in support of Republican candidate John Deaton. Deaton, who won his primary, will face incumbent Senator Elizabeth Warren in November. These targeted efforts demonstrate the crypto industry’s ability to strategically invest in races where their support can have a significant impact.
Crypto’s Expanding Political Influence
The 2024 U.S. elections mark a turning point for the cryptocurrency industry’s political engagement. With millions of dollars in contributions from crypto-backed PACs, candidates who favor balanced digital asset regulations are receiving unprecedented support. As early voting begins in Arizona and Michigan, the role of these PACs could be decisive in determining the future of cryptocurrency regulation in the U.S. Whether these efforts will succeed in securing legislative allies remains to be seen, but the crypto industry’s commitment to political involvement is clear.
The outcome of these elections will not only impact the candidates but also shape the regulatory landscape for years to come, potentially leading to a more favorable environment for blockchain innovation and cryptocurrency adoption.
