Regulation
Crypto Billionaires Go All-In: $160 Million Fund Targets Senate Democrats
As the US election approaches, cryptocurrency billionaires have done just that reportedly has amassed a staggering $160 million war chest to support candidates who support favorable regulations in the digital assets industry.
This influx of funds positions the industry as one of the most influential players in federal campaign finance, with the potential to influence the outcome of Senate races and even determine the majority party.
The cryptocurrency giants’ fight for regulatory reform
According to Bloomberg relationshipIndustry political action committee (PAC), Fairshake, along with affiliated groups, have seen a rapid increase in funding in recent weeks, thanks to major contributions from prominent players such as Ripple Labs, Andreessen Horowitz, and Coinbase Global.
Prominent figures such as Cameron Winklevoss and Tyler Winklevoss, co-founders of the Gemini exchange, also made substantial donations earlier this year.
The CEO of Coinbase, Brian Armstrongwhose net worth has skyrocketed alongside the resurgence of the cryptocurrency market, has actively sought support from lawmakers who support digital assets.
Cryptocurrency giants aim to reduce oversight imposed by the Securities and Exchange Commission (SEC), which has initiated and enforced lawsuits significant fines on the main cryptocurrency players.
Gary Gensler, chairman of the SEC, has been an outspoken critic of the industry, highlighting concerns about “fraud and inadequate protection of client assets.” Platforms like Coinbase, which have faced lawsuits from the SEC over alleged securities law violations, have a lot at stake if the regulator’s position prevails.
Pressure is mounting on Brown and Tester in the Senate race
According to the report, Fairshake’s political influence is expected to focus on the re-election campaigns of Senators Sherrod Brown and Jon Tester. As the only two Democratic incumbents in states won by Donald Trump in previous elections, they are vulnerable to Republican challenges.
Pressure is mounting on Senators Sherrod Brown and Jon Tester as they face scrutiny from both sides of the cryptocurrency debate. Brown, who received an “F” grade on a digital advocacy website promoted by Coinbase CEO Brian Armstrong, is being challenged by Bernie Moreno, a Republican candidate known for his advocacy of cryptocurrencies.
On the other hand, Tester is labeled as fairly neutral on the issue, but comes under fire from his opponent, Tim Sheehy, who accuses Tester of trying to stifle crypto innovation.
The Democratic-led Senate has, so far, taken no industry-friendly digital action regulatory bills, which the Republican-controlled House passed in May. However, Senator Debbie Stabenow of Michigan has shown support for legislation to regulate cryptocurrencies through the Commodities Futures Trading Commission (CFTC), which has a significantly different approach to innovation and regulation of the industry.
Ultimately, the cryptocurrency industry’s $160 million war chest catapulted it into prominence Financing of American election campaigns. It can potentially influence the outcome of Senate races and influence the trajectory of crypto regulations.
With the re-election campaigns of Senators Sherrod Brown and Jon Tester taking center stage, the battle between billionaires and cryptocurrency skeptics will determine the industry’s fate in the halls of power.
Featured image from DALL-E, chart from TradingView.com