Less than two years ago, politicians scrambled to distance themselves from the cryptocurrency world and its disgraced Washington ambassador Sam Bankman-Fried. Now, with SBF out of the picture and $80 million dangling from new crypto super PACs looking to reshape the Senate, candidates are jumping back on the industry’s bandwagon. Days after the super PACs announced plans to spend on the U.S. Senate race in Maryland, two leading Democratic contenders are revealing that they’re pro-crypto. Crypto advocacy isn’t an obvious issue for Rep. David Trone or Prince George's County Executive Angela Alsobrooks. Neither has ever tweeted the word “crypto” or championed digital asset policy in past roles. Trone last year signed on to a letter led by Sen. Elizabeth Warren, a leading crypto critic, that pressed the Biden administration to crack down on the use of digital assets in terrorist financing. Now Trone is echoing a familiar industry line: The U.S. must establish rules that facilitate the growth of crypto firms here or risk America falling behind on technology. Likewise, Alsobrooks is calling for policy that harnesses the benefits of crypto in a bid to help underserved communities — another repeated industry talking point. Her campaign says her views are long-held. Their statements to MM this week underscore the success that crypto’s political influence machine is having this cycle. The super PACs spent more than $13 million to help boost pro-crypto candidates to victory in Super Tuesday primaries in California, Alabama and Texas. The industry is eager to recruit allies at a key moment, especially in the Senate, when Congress is fighting over legislation that could give crypto firms a clearer path forward in federal law or impose new requirements that they hate. The crypto super groups, consisting of the PACs Fairshake, Protect Progress and Defend American Jobs, are planning to use their war chest next in Senate races in Maryland and Michigan as well in Republican-leaning states like Ohio and Montana. Their approach to the 2024 campaigns is to elect industry allies and annihilate potential foes. Major crypto firms and investors, including Coinbase, Ripple and Andreessen Horowitz, are bankrolling the effort and stand to gain if it’s successful. “Fairshake is committed to supporting elected officials and candidates on both sides of the aisle who want to get things done and keep tech jobs in America, and, as Super Tuesday showed, the voters are with us,” the group's spokesperson, Josh Vlasto, said in a statement. Trone and Alsobrooks appear to be on board in Maryland, a blue state where one of them is expected to face off against Republican Larry Hogan, the popular former governor. Trone, a three-term congressmember who co-founded the liquor store chain Total Wine & More, said the U.S. has “a responsibility to establish a sensible regulatory framework that safeguards investors and consumers.” “Other countries are racing ahead of the U.S. to establish clear regulatory frameworks that provide legal certainty for cryptocurrencies and digital assets, foster innovation and attract talent and capital,” he said. “We cannot let the U.S. fall behind in the global race for technological advancement and economic competitiveness.” Alsobrooks, a former prosecutor, said it “is important that we harness the benefits of digital assets and blockchain appropriately, and in a way that allows for innovation while protecting consumers.” She added that crypto and the underlying blockchain technology “can help all Americans, including traditionally underserved communities, have a first chance to build generational wealth for their families.” In the Super Tuesday races earlier this month, the super PACs also backed candidates who ended up with pro-crypto language on their campaign websites. Among them was Rep. Adam Schiff, who is poised to be California’s next senator. Schiff said in an interview this week that he had no interaction with the super PAC, saying "they were completely independent." Asked about his view on crypto, he said he wants "all of these new technologies to stay in California. I think it's an important segment of our economy." Industry critics, who warn that crypto is a threat to consumers, are speaking out against the campaign. “This is just a continuation of the FTX-Sam Bankman-Fried playbook to buy politicians who will then pay back the crypto industry with favorable legislation,” said Dennis Kelleher, CEO of the financial watchdog group Better Markets. The group's highest impact targets are expected to be Ohio and Montana. It’s where a pair of key crypto critics — Democratic Sens. Sherrod Brown and Jon Tester — are facing tough reelection campaigns in races that may determine control of the Senate. The crypto group announced last week that it plans to spend in both states but said it hadn’t decided on who it will back. It’s a carrot-and-stick approach with Brown and Tester: The super PACs are leaving the door open to supporting them if they come around on industry-friendly policies, but are also threatening to hurt their reelection bids if they don’t. Asked about the super PACs this week, Brown and Tester said they were aware of the groups but declined to comment. Happy Friday — Send tips to zwarmbrodt@politico.com.
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