In the face of increased government scrutiny, three political action committees funded by leaders of the cryptocurrency industry have amassed a war chest of $78 million heading into the upcoming election cycle. One of the most notable aspects of the crypto super PACs, which came to light this week, is the number of competitors teaming up to support it.
The three super PACs—Fairshake, Protect Progress, and Defend American Jobs—are supported by crypto heavyweights Coinbase, Circle, Ripple, venture capital firm Andreessen Horwitz, and the Winklevoss twins. The PACs are expected to use the money in support of pro-crypto candidates running for seats in both the House and Senate. Although super PACs are prohibited from sending money directly to political candidates, Fairshake has already spent more than $1 million in television advertisement backing a select group of lawmakers,
Pushback Against Overreach
The super PACs have been motivated by recent government action, including a letter sent this week by Massachusetts Senator Elizabeth Warren. Warren targeted several industry groups, including the Blockchain Association, Bitcoin Center, and other crypto advocacy organizations.
“I write regarding a troubling new report that your association and other crypto interests are … working to undermine bipartisan efforts in Congress and the Biden Administration to address the role of cryptocurrency in financing Hamas and other terrorist organizations,” Warren wrote.
The crypto industry was quick to respond. “Engaging like-minded experts to advocate against legislative proposals that one sincerely believes are unconstitutional and detrimental to the nation’s welfare does not constitute ‘undermining bipartisan efforts in Congress,’” wrote Neeraj K. Agrawal of the cryptocurrency policy think tank CoinCenter. “Rather, it is the exercise of the fundamental right to freely associate and petition the government. It’s everyone’s right and no one should apologize for doing it. Resorting to questioning motives often reflects an inability to prevail on the merits of an argument itself.”
With such arguments floating around nearly a year ahead of the election, it’s no wonder that the crypto industry is uniting to assert its power. It’s significant that competitors like Coinbase and Ripple have chosen to team up in this effort. Ripple CEO Brad Garlinghouse said in a statement: “We need to advance leaders who will champion innovation and spearhead paths towards responsible regulation.”