Crypto PACs Dominate Ohio Senate Race, Spending $40M on Sherrod Brown’s Foe

As a long-time crypto investor and enthusiast, I find myself both intrigued and concerned by the recent developments in Ohio’s U.S. Senate race. On one hand, it’s encouraging to see the crypto industry stepping up its political game with substantial campaign contributions aimed at supporting candidates like Bernie Moreno, who seems to be a strong advocate for blockchain technology.

A significant amount of money from the cryptocurrency sector, approximately $40 million, is being spent in Ohio’s U.S. Senate race. This money is primarily being used by political action committees to support Republican Bernie Moreno, who opposes Senator Sherrod Brown (D-Ohio), a senator known for his skepticism towards cryptocurrencies and currently the chairman of the Senate Banking Committee.

According to the latest Federal Election Commission filings, Fairshake PAC and its affiliates, particularly Defend American Jobs, have significantly surpassed their initial $12 million spending commitment in Ohio. This substantial investment, primarily directed towards pro-Moreno advertisements, represents the largest single spending from the digital assets sector so far in this crucial battleground.

Over the past month since Fairshake made his appearance, Ohio voter sentiment towards blockchain entrepreneur Moreno has significantly increased. As August began, he had 39.6% support among likely voters in a poll conducted by CoinDesk, while Brown held 48.3%. However, the latest poll by ActiVote suggests that Moreno might even surpass Brown with 51%, compared to Brown’s 49%. This poll has an almost 5% margin of error attached to it.

As an analyst, I’ve noticed a consistent upward trend in support for Moreno, as suggested by the average of recent polls. This shift has amounted to a 2.3 percentage point increase since Moreno entered Ohio’s race, according to the data compiled by FiveThirtyEight.com, a trusted political analysis platform.

Certain influential figures within the cryptocurrency sector have privately voiced concern over Fairshake’s attempt to unseat Brown, who currently holds considerable influence over the Senate’s crypto-related matters. If Brown manages to secure victory and the Senate continues under Democratic control, he will maintain his authority, and this internal conflict could potentially harm the industry’s legislative efforts. The move has already cost Fairshake the support of a major donor and sparked resentment among prominent Democrats.

Fairshake spokesman Josh Vlasto declined to comment on the Ohio strategy.

In that state, external funding is significantly filling a wide chasm in candidate donations that would otherwise be significant, as these are direct contributions subject to spending limits and U.S. election laws. To be specific, veteran lawmaker Brown has received approximately $53 million compared to Moreno’s $16 million, according to the latest federal records. In simpler terms, large amounts of money from outside sources are helping to cover a big difference in donations between these two candidates.

Super PACs such as Fairshake can only invest in campaigns through what they call independent expenditures – these include advertising and services that aren’t directly connected to or endorsed by the candidate’s campaign. In certain elections, Fairshake has spent millions on negative ads to discourage candidates who aren’t pro-crypto, but in this particular race, their ads are supportive of Moreno, a businessman from Ohio with an interest in cryptocurrency, who founded a blockchain startup specializing in property titles.

If Brown doesn’t win, it significantly increases the likelihood that Republicans will claim the Senate majority. In this scenario, Senator Tim Scott (R-S.C.) could become the next chairperson. Previously, Scott’s views on cryptocurrency were rather quiet, but he has recently expressed support for digital assets advancements at the Bitcoin 2024 conference in Nashville, and at a symposium in Wyoming organized by the SALT Conference, he suggested the possibility of establishing a crypto-focused subcommittee if he secures the gavel.

“We have to get rid of the folks who are in the way,” Scott said in Nashville.

Fairshake garnered attention as it swiftly surpassed other political action committees in accumulating funds for the 2024 elections, amassing a total of $169 million. This amassed fortune has been utilized to support candidates deemed beneficial for the industry and to counteract those who may not align with their interests – notably those endorsed by Sen. Elizabeth Warren (D-Mass.) in particular.

Although Fairshake was primarily backed by well-known figures in the cryptocurrency industry such as Coinbase Inc., Ripple Labs, and a16z (Andreessen Horowitz), their advertisements generally do not refer to digital assets explicitly.

In approximately two dozen primary elections, preferred candidates who are supportive of cryptocurrency have emerged victorious. This means that a larger number of pro-crypto representatives will likely occupy seats in Congress next year. Since both the Senate and House of Representatives were previously perceived as at risk for a shift in their control, every change in the political landscape could be significant. The Democrats have narrowly maintained control over the Senate – with the tie-breaking vote of the Vice President acting as deciding factor in a 50-50 split between parties.