As interest groups flood northern Orange County with ads related to the hotly contested legislative race, a new industry, cryptocurrencies, is emerging as a major source of spending.
political action committee called fair shakeis funded by crypto companies and their investors, more than any other trade group, to help vulnerable Republican incumbent Rep. Michelle Steele (R-Seal Beach) retain her seat in Congress. Approximately $2.8 million was invested.
The same is true across California, where cryptocurrencies are spending more than any other business interest in competitive House races. The industry spent about $7 million last month to boost four Republican incumbents in battleground districts in Southern California and the Central Valley, according to federal campaign finance records.
Republicans hold a slim majority in the House, and both parties see six elections in California as critical to their path to victory.
Rick Claypool, research director at consumer advocacy nonprofit Public Citizen, said that in such a tough election year, huge crypto spending could influence which party controls Congress. .
“No other company has campaign spending on this scale,” Claypool said. “Yes, there have been corporate campaigns and corporate spending, but nothing on this scale, nothing so public, just fundamental and transparent deals.”
The surge in House spending follows FairShake’s $10 million ad campaign in this spring’s U.S. Senate primary, which ousted Rep. Katie Porter (D-Irvine) from the race. It was intended for that purpose. Mr. Porter finished third, and Democratic Rep. Adam B. Schiff (D-Burbank) will now face his favorite opponent, Republican Steve Garvey.
The crypto industry flooded the airwaves with ads in 2024, sending a clear signal to politicians that if they don’t support more crypto-friendly laws in Washington, they could be ousted.
Claypool said cryptocurrencies accounted for nearly half of all political donations made by corporate spenders this year. The roughly $130 million spent on cryptocurrencies over the past three elections represents 15% of all known corporate spending since 2010, when the Supreme Court lifted restrictions on corporate political spending in the Citizens United decision. He said it was equivalent.
Fairshake Super PAC largest donor These include cryptocurrency companies Coinbase and Ripple. Brian Armstrong, CEO of Coinbase. Bay Area venture capitalists and cryptocurrency investors Marc Andreessen and Ben Horowitz.
Cryptocurrencies are virtual currencies, often treated as investments, and traded through decentralized networks rather than banks.
Armstrong: “No matter how you slice it, this will be the most crypto-friendly Congress ever.” said on wednesday In a post on X, he said Coinbase would spend an additional $25 million through FairShake to elect pro-crypto candidates in the 2026 midterm elections.
Steele is getting the most help from cryptocurrencies
Fair Shake PAC’s $26 million in national spending will be split evenly between incumbent House Republicans and Democrats. In California, the group has focused on supporting the Republican Party. FairShake declined to comment on the California spending.
In addition to spending nearly $2.8 million on Steele, the most of any House member, the group has spent more than $1.8 million on behalf of members of Congress. Young Kim (R-Anaheim Hills) Orange County, $1.3 million to Congressman. david valadao (R-Hanford) Central Valley, $1 million to Congressman. mike garcia (R-Santa Clarita) of Antelope Valley.
As a super PAC, FairShake can make independent expenditures on behalf of candidates, but cannot directly contribute to or work with candidates’ campaigns.
advertisement Published by Fair Shake This month’s for Steel touts her record as an advocate for women, but makes no mention of cryptocurrencies. Meanwhile, Steele attacked his opponent, Democrat Derek Tran, over his cryptocurrency holdings.
The 45th Congressional District has the largest population of Vietnamese residents outside of Vietnam, and both Steele and Tran’s parties are fighting for the support of longtime Little Saigon residents. In a Vietnamese-language email this month, Mr. Steele tried to link Mr. Tran to Chinese communists like Mao Zedong and accused him of owning “thousands of dollars in cryptocurrencies with ties to China.”
Tran said He reportedly owns $145,000 in Bitcoin, Ethereum and other cryptocurrencies through Binance, an exchange platform founded in Shanghai but no longer based there.
Only a handful of members of Congress own cryptocurrencies. Not so with steel. Her campaign declined to comment.
In a survey by Stand With Crypto, an industry lobbying group that scores politicians on their positions on cryptocurrencies, both Steele and Tran vowed to support regulations that create clearer laws. The group concluded that Mr. Steele: cast vote for Three bills supported by the industry.”strongly“Tran supports crypto, but”generally“that’s right.
Tran’s consultant, Orrin Evans, said spending on cryptocurrencies is “concerning” and that “rather than promoting the importance of cryptocurrencies in driving innovation, it is more about Republican control of the House of Representatives.” “They seem to be focused on keeping things down.”
The role of cryptocurrencies in the California Senate election
In the spring, Fair Shake lost more than $10 million. advertisement They called Porter a phony, an actor and a hypocrite. After Mr. Porter finished third by a wide margin over Mr. Schiff and Mr. Garvey, the crypto super PAC announced an alliance with industry rival and leader Sen. Elizabeth Warren (D-Mass.) He boasted that the relationship “ended my career in Congress.”
Mr. Porter received an “F” rating from the “Stand with Crypto” lobbying group, and Mr. Schiff received an “A” rating. The group pointed to a statement on Schiff’s campaign website calling for a “comprehensive regulatory framework” to keep cryptocurrency and Web3 companies in the United States. Web3 is a decentralized internet. It is based on blockchain, a public ledger used to record all cryptocurrency transactions.
Mr. Schiff subsequently voted against two of the industry’s three top priorities in Washington, but the group maintained his “A” rating. he voted in favor of the bill known as fit 21This is one of the industry’s top priorities, moving some crypto regulation from the Securities and Exchange Commission to the smaller, less aggressive Commodity Futures Trading Commission. invoice passed the House of Representatives In May.
Cryptocurrency for Democrats
FairShake also established two subsidiary PACs that support politicians from various parties. One PAC, “Defend American Jobs,” is spending for Republicans, and the other, “Protect Progress,” is spending for Democrats, including two Californians.
Through Protect Progress, crypto companies are supporting U.S. Rep. Jimmy Gomez (D-Los Angeles) as he seeks re-election in the 34th Congressional District, which encompasses Central and Northeast Los Angeles, including Boyle Heights and Koreatown. Spent over $500,000.
Gomez is running against progressive Democrat David Kim, who lost to Gomez by a six-point margin in 2020 and by an even narrower margin in 2022. The crypto lobbying group is the second-largest outside spender in the campaign, behind the American Israel Public Affairs Committee super PAC. federal filings show.
Silicon Valley Congressman Ro Khanna has nearly $110,000 spent on himself by the same crypto group.
