Cryptocurrency-affiliated PACs have dominated corporate spending in this election, donating to Democratic and Republican candidates, but some Democrats accuse them of favoring the GOP.
Reps. Michelle Steel (R-CA), David Valadao (R-CA), and Mike Garcia (R-CA) are vulnerable incumbents who have voted in favor of legislation safeguarding cryptocurrency from arduous regulation.
Fairshake, a cryptocurrency super PAC, has spent $5 million on advertisements supporting the three candidates. The super PAC spent $2.84 million in advertising in support of Steel, with her seat being labeled as a Democratic toss-up. Her opponent is Derek Tran, an attorney and Army veteran who is in favor of supporting blockchain but is vague on his policy stance on cryptocurrency.
Tran notes on his website that “establishing clear regulations for this technology will foster growth, safeguard consumers, and enhance national security.” However, there are no details about what regulations he thinks should be implemented.
Steel has a proven voting record in line with cryptocurrency interests.
But Paul Iskajyan, a campaign spokesman for Tran, told Politico he thinks Fairshake is favoring Republicans.
“It appears this is more about keeping the House of Representatives in Republican control than promoting the importance of crypto in driving technological innovation,” Iskajyan said.
But Rep. Ro Khanna (D-CA), an incumbent in a solid Democratic district, has received campaign donations from the cryptocurrency industry. In August, Khanna received $250,000. Like his Republican colleagues, Khanna has a record of voting for legislation deemed to be in the best interests of the cryptocurrency space.
Nationwide, the cryptocurrency industry has spent more than $119 million this election cycle. Since 2010, the cryptocurrency space has spent $129 million in elections, putting it second behind fossil fuels. Nearly all of its spending in elections is for this year alone.
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Fairshake spokesman Josh Vlasto said the group’s concern is getting candidates elected who are favorable to cryptocurrency interests, regardless of party affiliation.
“We are proud of the progress we have seen toward the creation of a sustainable bipartisan coalition,” he said in a statement.