Fairshake PAC, a major political organization in the cryptocurrency world, has pumped millions of dollars into the Senate campaigns of two Democrats against Donald Trump-backed candidates, sparking embarrassment in the Republican Party, a traditional ally of the cryptocurrency industry.
Fairshake is the leading PAC funded by digital asset companies, receiving significant contributions from major companies such as Coinbase, the largest cryptocurrency exchange in the United States; and individual donors affiliated with the venture capital firm Andressen Horowitz, among others.
Candidates supported by Fairshake PAC and its affiliated super PACs are Ruben Gallego, who will face Kari Lake in Arizona, and Elissa Slotkin, who will compete with Mike Rogers in Michigan, and everything seems to indicate that each of them will be able to count on $3 million in advertising, since the organization has committed to allocate that amount for their campaigns.
Fairshake PAC’s decision has angered Republicans, who believe the investment could reduce their candidates’ chances of securing key Senate seats.
The organization’s investment also reflects an important trend reversal, as the cryptocurrency industry used to primarily back Republican candidates.
The support may be related to the change of opinion of Slotkin and Gallego regarding cryptocurrencies, as both candidates used to express skepticism and even criticism towards this technology, but in recent months, their stance has made a significant turnaround. In fact, Stand With Crypto, a non-profit organization that supports the cryptocurrency industry, has given them positive ratings.
In statements to NBC News, Fairshake argued that the ratings provided by Stand With Crypto were a key factor in the decision to support Democratic candidates, who this year backed a landmark cryptocurrency bill.
Despite the Democrats’ change in stance on cryptocurrencies, it’s worth noting that Kari Lake has earned an excellent rating from Stand With Crypto, another reason Republicans have surely been upset with Fairshake.
Josh Vlasto, a spokesman for Fairshake, said in a statement that the organization and affiliated super PACs seek to “support candidates who embrace innovation, want to protect American jobs and are committed to working across the aisle to get things done and oppose those who do not.”
NBC News pointed out that a Republican strategist involved in Senate races warned that Fairshake’s decision could hurt Trump.
“Coinbase and Fairshake are attempting to become toxic to Republicans. Spending against two key GOP candidates could jeopardize the Senate and harm Trump.” He added: “Gallego and Slotkin have voted against bitcoin interests and would vote to confirm a far-Left SEC Chairman. It makes no sense.”
NBC News also quoted a senior industry insider speaking on condition of anonymity who was highly critical of the Democrats’ support. “Republicans are WTF about what’s going on with Fairshake, and I think that’s a pretty bad omen for the industry, that people are wondering why our main trade association is pointing its arsenal at our friends.”
According to Bloomberg, Vice President Kamala Harris has been trying to reach out to the cryptocurrency industry since she was nominated as the Democratic candidate for president, so she dialogued via Zoom with executives from major companies in the field, who expressed their concerns to her.
The Democrats have also launched a group called Crypto4Harris in order to deepen the link with the cryptocurrency industry. Likewise, Wes Moore, governor of Maryland, argued during a recent interview on CNBC that a Harris-led government would provide a more favorable framework for crypto businesses.
However, a former Trump official doesn’t believe a Harris administration will be any friendlier to businesses in the cryptocurrency world. “The big political question here is, can Harris convince proponents of industry that she has done a 180, or is it just talk?” he said.
Winklevoss twins donated bitcoins to Trump, ‘the pro-Bitcoin, pro-crypto and pro-business choice’
The Winklevoss billionaire twins, founders of cryptocurrency company Gemini, announced in late June that they each donated $1 million in bitcoins to back Trump citing the Republican front-runner’s commitment to the growth of cryptocurrencies.
“I just donated $1 million in bitcoins (15.47 BTC) to @realDonaldTrump and will be voting for him in November. Here’s why,” Tyler Winklevoss wrote on his X account in a lengthy post where he sharply questioned Joe Biden’s administration.
“Over the past few years, the Biden Administration has openly declared war on cryptocurrencies. It has weaponized multiple government agencies to intimidate, harass and sue the good players in our industry in an effort to destroy it. The actions of this Administration have been nothing short of an unprecedented abuse of power, exercised entirely for twisted political gain at the expense of innovation, the American taxpayer and the American economy. There is nothing the Biden Administration can do or say at this time to pretend otherwise,” the Gemini co-founder questioned before highlighting Trump’s commitment to cryptocurrencies.
“President Donald J. Trump is the pro-Bitcoin, pro-crypto and pro-business choice. This is not remotely open to debate. Anyone who tells you otherwise is either grossly misinformed, misleading or not telling the truth. It is time to take our country back. It is time for the crypto army to send a message to Washington. That attacking us is political suicide. That’s why I’m voting for President Trump in November and I hope you will too. Go for it!” said Winklevoss.