As the US elections near, crypto billionaires have reportedly gathered a massive $160 million fund to back candidates favoring digital asset industry regulations. This influx positions the industry as a major player in federal campaign finance, potentially influencing Senate race outcomes and determining the majority party.

Crypto Giants' Push for Regulatory Change

According to Bloomberg, the political action committee (PAC) Fairshake, along with related groups, has seen a rapid increase in funding from major contributors like Ripple Labs, Andreessen Horowitz, and Coinbase Global. Significant donations have also come from Gemini exchange co-founders Cameron and Tyler Winklevoss.

Coinbase CEO Brian Armstrong, whose wealth has surged with the crypto market, has actively supported lawmakers who favor digital assets.

Targeting SEC Oversight

Crypto giants aim to reduce oversight by the Securities and Exchange Commission (SEC), which has issued lawsuits and hefty fines against major crypto entities. SEC Chair Gary Gensler has criticized the industry for issues like fraud and inadequate customer asset protection. Companies like Coinbase, facing SEC legal action, have much at stake.

Senate Race Focus

Fairshake's influence is expected to focus on the reelection campaigns of Senators Sherrod Brown and Jon Tester. Both are Democratic incumbents in states won by Donald Trump, making them vulnerable to Republican challenges.

Senator Sherrod Brown faces pressure as he received an "F" grade on a digital advocacy website promoted by Brian Armstrong, while being challenged by crypto advocate Bernie Moreno. Senator Jon Tester, considered neutral on the issue, is targeted by Tim Sheehy, who accuses him of hindering crypto innovation.

Although the Democratic-led Senate has not yet acted on pro-industry digital regulation bills approved by the Republican-controlled House, Senator Debbie Stabenow of Michigan supports regulating crypto assets through the Commodities Futures Trading Commission (CFTC).

Impact on US Campaign Finance

The crypto industry's $160 million fund has elevated its prominence in US campaign finance, potentially shaping Senate race outcomes and influencing crypto regulations. The reelection campaigns of Senators Brown and Tester are central, as the clash between crypto supporters and skeptics will determine the industry's regulatory future.