Crypto PACs spend $3.5M to sweep primaries in California, New Jersey, South Dakota
In brief
- Nearly a dozen candidates won primaries across California, New Jersey, and South Dakota with crypto PAC support.
- Protect Progress and Defend American Jobs PACs spent $3.5 million combined on media buys.
- Both groups are affiliated with Fairshake, a super PAC backed by Coinbase and Ripple Labs.
Primary wins in California and beyond
Nine Democratic candidates won California House primaries after receiving PAC support: Jacqui Irwin, Ted Lieu, Zoe Lofgren, Dave Min, Mike McGuire, Hilda Solis, George Whitesides, Lou Correa, and Lateefah Simon. Rob Menendez won the Democratic primary for New Jersey's 8th congressional district while Mike Rounds won the Republican primary for a South Dakota Senate seat.
The wins represent a widening influence for crypto-aligned political spending. The Protect Progress and Defend American Jobs PACs spent about a combined $3.5 million on media to support the candidates. These groups are affiliated with Fairshake, a political action committee funded largely by cryptocurrency exchange Coinbase and Ripple Labs.
Fairshake's war chest and Texas momentum
Fairshake reported having a war chest of $193 million in January, positioning it as one of the largest independent expenditure committees in the 2024 cycle. The group's spending extends beyond the primary states. Christian Menefee defeated incumbent US Representative Al Green in a Texas runoff primary, and four Republican candidates won primaries in smaller Texas House districts following PAC media buys.
Maryland represents another battleground. Protect Progress had spent more than $3.1 million as of Wednesday to support Democratic candidate Adrian Boafo in Maryland's 5th Congressional district, with the primary scheduled for June 23.
A new PAC focused on developer protection
The crypto industry's political infrastructure expanded with the launch of Defend Developers. This hybrid PAC will support incumbent members of Congress who actively champion developer protections and crypto builders.
Defend Developers' board includes CEOs, CLOs, and policy leaders at top crypto organizations, including DeFi Education Fund, Orca Creative, Solana Policy Institute, and Uniswap Labs. Gavin Zavatone founded the PAC. Nick Stoltzfus, co-CEO of on-chain student loan digital asset platform Stratofied, was listed as treasurer and custodian of records in Defend Developers' statement of organization on May 15.
"For too long, developers building decentralized technologies have faced regulatory uncertainty and enforcement actions instead of clear rules and guidelines." — Gavin Zavatone, founder of Defend Developers
