Key facts
- Stand With Crypto, an advocacy group started by Coinbase, is endorsing political candidates.
- The group is backing candidates based on their crypto positions, regardless of party.
- The Clarity Act failed in the Senate with all Democrats voting against it.
- Fairshake PAC launched a $30 million campaign against Senator Sherrod Brown.
- Total crypto political spending this cycle is approaching $200 million.
Following the failure of the Clarity Act in the Senate, the cryptocurrency industry has shifted its political focus to senatorial campaigns. Stand With Crypto, an advocacy group initiated by Coinbase, announced its first slate of Senate endorsements on Wednesday, signaling a move from legislative lobbying to electoral campaigning.
The group is backing Republican Jon Husted in Ohio, challenging Senator Sherrod Brown, a long-time critic of the crypto industry who holds a significant position on the Senate Banking Committee. The race in Ohio is considered particularly crucial for the industry. Additionally, Stand With Crypto has endorsed Republican Ashley Hinson in Iowa and Democrat Chris Pappas in New Hampshire, who is running against former Republican Senator John Sununu.
On the House side, the group is supporting Iowa Republican Mariannette Miller-Meeks and Alabama Democrat Shomari Figures, with plans for further advertising in six other races. Stand With Crypto stated that its candidate selections are based solely on their crypto policy stances, irrespective of party affiliation. This follows their endorsement of 32 House incumbents in August.
While the financial backing for these efforts is substantial, Stand With Crypto itself does not make direct donations. Instead, it focuses on grading candidates and mobilizing voters. The group's executive director highlighted that its three million supporters are now concentrating on electing pro-crypto candidates. Candidates who receive favorable ratings from Stand With Crypto often attract funding from crypto-aligned Political Action Committees (PACs). Notably, the Fairshake PAC has initiated a $30 million campaign targeting Senator Brown.
The Clarity Act's failure, with a 49-50 vote and unanimous Democratic opposition attributed to concerns over Donald Trump's crypto businesses, makes Stand With Crypto's endorsement of two additional Democrats a notable, albeit potentially counter-intuitive, strategic bet.