US Crypto Industry Ramps Up Midterm Spending, Backs Democrat With $362,000

The US crypto industry is expanding political spending ahead of the November midterm elections to support candidates viewed as friendly to digital assets.

Cointelegraph reported on Oct. 19 that Protect Progress, an affiliate of crypto-backed super PAC Fairshake, disclosed to the Federal Election Commission that it spent $362,000 on ads supporting Democratic Rep. Aisha Wahab in California's 14th Congressional District.

Wahab won a special election held on Aug. 18 with more than 53% of the vote, defeating fellow Democrat Melissa Hernandez. Both candidates had previously been classified by crypto policy group Stand With Crypto as strong supporters of the digital-asset industry, raising questions about why the industry directed additional funds to Wahab.

Fairshake was launched in 2023 with backing from Coinbase, Ripple Labs and Andreessen Horowitz. It has since expanded its influence in US congressional races by supporting candidates who favor crypto-friendly policies. As of January, Fairshake held about $193 million in cash and cash equivalents.

Another Fairshake affiliate, Defend American Jobs, which primarily backs Republican candidates, is also spending heavily in key Senate races. In Nebraska, it spent more than $6.7 million on ads opposing independent candidate Dan Osborn. In Ohio, it deployed another $8 million to support Republican Jon Husted. Its cumulative spending in the Ohio race has exceeded $46 million.

The Ohio contest is being closely watched as a test of the crypto industry's political clout. Democrat Sherrod Brown lost to Republican Bernie Moreno in the 2024 Senate race after industry groups mounted a major wave of opposition ads against him. Attention is now turning to how crypto-related political money could shape this midterm campaign.