Crypto PACs Spend Millions to Influence US Primaries

While residents of California, Iowa, Montana, New Jersey, New Mexico and South Dakota are voting today in Democratic and Republican Congressional primaries, the cryptocurrency industry is more focused on the Maryland primaries later this month.

According to filings with the US Federal Election Commission (FEC) as of Tuesday, the Coinbase- and Ripple-backed political action committee (PAC) Fairshake affiliate Protect Progress spent about $3 million combined to support Democratic candidates in House races across California and New Jersey. Another affiliate, Defend American Jobs, spent more than $411,000 to support Republican Senator Mike Rounds’ reelection bid in South Dakota.

In addition to its activities in California, Protect Progress appeared to be prepared for significant spending in Maryland, where primary elections are scheduled for June 23.

FEC filings showed the crypto-backed PAC spent more than $3.1 million on media to support Democratic candidate Adrian Boafo in Maryland’s 5th district, and about $320,000 on Ritchie Torres’ reelection to New York’s 15th district, which will also hold a primary on June 23.

Source: FEC

Today's California races will be another test of the cryptocurrency industry’s influence over US elections after Fairshake and other PACs backed House and Senate candidates who won their primaries in Texas last week. In addition to Fairshake, which reported a war chest of more than $193 million as of January, crypto-aligned PACs included Fellowship, backed by $11 million from financial company Cantor Fitzgerald and crypto custodian Anchorage Digital and the Blockchain Leadership Fund funded by $175,000 from Chainlink and Anchorage.

Related: Senator Lummis says China will 'write the rules' of new financial era if CLARITY fails

Fairshake has been open about its intention to force out House and Senate lawmakers it considers “anti-crypto,” such as Representative Al Green, who voted against the stablecoin legislation GENIUS Act and digital asset market structure bill, CLARITY.

The Texas lawmaker lost his primary for the state’s 18th congressional district after Protect Progress spent $5 million supporting his opponent, Democrat Christian Menefee.

CLARITY Act added to the US Senate legislative calendar

After advancement by the US Senate Agriculture Committee in January and the Banking Committee in May, lawmakers have added the Digital Asset Market Clarity (CLARITY) Act to the chamber’s calendar for consideration and a potential vote. Notably, both versions of the bill with amendments passed by the respective committees will likely need to be consolidated before a vote.