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Crypto PACs Spend $1.5M in State Races After Primary Loss

Created at 6 Aug · 9:21 PM1 source↑ Market-relevant
IN SHORT

Two cryptocurrency-backed PACs, Defend American Jobs and Protect Progress, have spent over $1.5 million on media for House and Senate candidates in Florida, Alaska, and Wyoming. This follows a primary loss in Michigan where a supported candidate was defeated.

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Key Numbers

$1.5 millionPAC spending on media for state races
4House and Senate races targeted
August 18Primary election date in Alaska and Wyoming
$500,000Defend American Jobs spending on Nick Begich
$500,000Defend American Jobs spending on Sydney Gruters
$500,000Defend American Jobs spending on Harriet Hageman
$2 millionAmount poured into Michigan primary loss
$50,000Protect Progress spending on Lois Frankel
$170 millionFairshake PAC spending in 2024 election cycle

Who's Involved

Defend American Jobs PAC
Crypto-affiliated PAC spending on state races
Protect Progress PAC
Crypto-affiliated PAC spending on state races
Fairshake
Umbrella PAC for crypto industry influence
Nick Begich
Representative supported by Defend American Jobs
Sydney Gruters
Republican candidate supported by Defend American Jobs
Harriet Hageman
Representative supported by Defend American Jobs
Lois Frankel
Representative supported by Protect Progress
Shri Thanedar
Incumbent who lost Michigan primary
Donavan McKinney
State Representative who won Michigan primary
Mason Lynaugh
Community director for Stand With Crypto

↳ Why This Matters

The substantial spending by crypto-aligned PACs highlights the industry's significant financial influence in US elections, aiming to elect lawmakers favorable to digital asset legislation and potentially shape the future regulatory landscape.

Key facts

  • Two crypto-affiliated PACs, Defend American Jobs and Protect Progress, spent over $1.5 million on media for candidates in four US state races.
  • The spending targeted House and Senate candidates in Florida, Alaska, and Wyoming ahead of August 18 primaries.
  • This investment follows a primary loss in Michigan for a candidate previously backed by the Protect Progress PAC.
  • Supported candidates, including Representatives Nick Begich and Harriet Hageman, have generally voted for crypto-friendly legislation like the CLARITY Act.
  • The broader Fairshake PAC has spent over $170 million in the 2024 election cycle.

Two political action committees affiliated with the cryptocurrency industry have disclosed spending over $1.5 million on media campaigns to support candidates in key US state races. The groups, Defend American Jobs and Protect Progress PACs, are linked to Fairshake, a major PAC focused on influencing US elections.

The expenditures come after a significant primary loss in Michigan, where a candidate backed by Protect Progress, incumbent Representative Shri Thanedar, was defeated by State Representative Donavan McKinney. Protect Progress had reportedly invested over $2 million in media supporting Thanedar.

In the recent spending, Defend American Jobs allocated more than $500,000 to support the re-election of Representative Nick Begich in Alaska's at-large congressional district. The PAC also spent a similar amount on Republican candidate Sydney Gruters in Florida's 16th district and Representative Harriet Hageman, who is running for the Wyoming Senate seat. Both Alaska and Wyoming are scheduled to hold their primaries on August 18.

Protect Progress also reported spending over $50,000 to support the re-election of Representative Lois Frankel in Florida's 23rd district. Many of the supported candidates, including Frankel, Begich, and Hageman, have previously voted in favor of legislation such as the Digital Asset Market Clarity (CLARITY) Act and the GENIUS Act, which aim to regulate the digital asset market.

These investments represent a continued effort by Fairshake and other crypto-aligned groups to influence US elections, with Fairshake having already spent over $170 million in the current election cycle. The voting records of lawmakers on crypto legislation are increasingly being used by advocacy groups like Stand With Crypto to rate candidates, potentially impacting future electoral support.

Frequently asked questions

The Digital Asset Market Clarity (CLARITY) Act is a piece of proposed legislation aimed at regulating the digital asset market in the United States. Candidates supported by the crypto PACs have generally voted in favor of this bill.

The PACs supported Representatives Nick Begich (Alaska), Harriet Hageman (Wyoming), and Lois Frankel (Florida), as well as Republican candidate Sydney Gruters (Florida).

In Michigan's 13th Congressional District, incumbent Representative Shri Thanedar, who was supported by the Protect Progress PAC, lost his primary election to State Representative Donavan McKinney.

What Happens Next

01US Senate to potentially vote on the CLARITY Act before its recess.
02Further campaign spending by crypto PACs in upcoming primary and general elections.

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How It Developed

Defend American Jobs and Protect Progress PACs disclosed spending over $1.5 million on media for House and Senate races.
The PACs supported candidates in Florida, Alaska, and Wyoming ahead of Aug. 18 primary elections.
This spending followed a primary loss in Michigan for a candidate supported by the Protect Progress PAC.
Defend American Jobs spent over $500,000 supporting Rep. Nick Begich in Alaska.
The PAC also spent about $500,000 on Sydney Gruters in Florida and Rep. Harriet Hageman in Wyoming.
Protect Progress spent over $50,000 supporting Rep. Lois Frankel in Florida.
Candidates supported by the PACs generally voted in favor of the Digital Asset Market Clarity (CLARITY) Act.
Fairshake and aligned groups have spent over $170 million in the 2024 election cycle.

Sources

T1
Following primary loss, crypto PACs invest $1.5M in 3 US state racesThe Defend American Jobs and Protect Progress PACs reported spending more than $1.5 million on media for four House and Senate races ahead of Aug. 18 primary elections.Cointelegraph

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