The cryptocurrency industry has its sights set on remaking a key Senate committee that regulates it. To do so, it’s taking a multimillion-dollar risk in battleground Ohio. A super PAC funded by crypto firms has begun pumping money into Buckeye State television markets to boost the Republican who is challenging Senate Banking Chair Sherrod Brown, a longtime critic of the digital asset sector. The PAC, Defend American Jobs, went up with a $12 million ad buy last month, and could spend more in the months to come. The effort carries high stakes for all involved: If Republican Bernie Moreno succeeds in toppling Brown, it would all but guarantee a GOP majority in the Senate next year. The prospect of Brown losing is appealing to crypto firms, which are pushing hard for legislation enacting lighter-touch regulations that he would likely block if he survives. Brown has long warned that digital assets are used in illicit finance and present dangers to consumers. But overtly taking on Brown in his home state carries significant perils for the crypto industry, and it’s starting to make some lobbyists in Washington nervous. “I would not want an openly hostile, revenge-seeking Sherrod Brown coming for us,” said one crypto lobbyist, who was granted anonymity to discuss sensitive dynamics within the sector. Brown has built his political identity as a populist progressive who takes on corporate power — including from his influential perch as chair of the Banking panel, where he has been a critic of big banks. An interest group spending money to try to topple him could help bolster his populist bona fides, and some Ohio Democrats hope his campaign uses the crypto sector’s efforts as ammunition. “I would make an issue of the fact that he’s always stood up to special interests,” said Jerry Austin, a longtime Democratic strategist in Ohio. “Here’s a multibillion-dollar special interest that’s spending all sorts of money in Ohio for the purpose of defeating him because they know that he’ll stand up to them.” To be sure, the crypto-funded ad campaign is still likely to ultimately benefit Moreno. Other campaigns facing candidates backed by the crypto industry have sought to make an issue of the spending from the super PACs — but all have lost. Brown campaign spokesperson Reeves Oyster said in a statement that “outside groups are spending record amounts to try to defeat Sherrod because they know he will always fight for Ohio, not special interests.” Moreno, a former car dealer, is a digital asset evangelist who once spearheaded an initiative to turn Cleveland into a hub for startups using blockchain, the digital ledger technology behind crypto. He has slammed Brown for his approach to crypto, saying he doesn’t understand the technology and is “against individual freedom and liberty.” Defend American Jobs is one of three affiliated crypto super PACs that are spending money to help elect industry allies and eliminate potential critics. Its first Ohio TV spot, a biographical commercial that focuses on economic issues and Moreno’s background, went on the air last month. The crypto super PACs have raised more than $160 million, and with just nine weeks to go until Election Day, they could pump more into the closely watched Ohio race. Still, Brown is currently leading in the polls: An AARP survey released last month showed him beating Moreno by four points, despite former President Donald Trump leading Vice President Kamala Harris by nine points in the presidential race. Crypto lobbyists worry that if Brown survives and Democrats hold the Senate, the industry’s spending will have backfired by alienating the leader of the committee that oversees it. “It scares me a ton,” the crypto lobbyist said. “If you shoot, you better not miss.” IT’S WEDNESDAY — Sorry, Sam — today, MM is Boston Red Sox territory. Send your thoughts on the Sox’s (dwindling) chances in the American League Wild Card race to jgoodman@politico.com. If you’ve moved on to football season, find Sam at ssutton@politico.com.
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