As the political winds shift in the volatile crypto industry, one of the sector’s most ardent advocates is stepping up efforts to back blockchain-friendly candidates in the upcoming U.S. election.
On Thursday, Chris Dixon, founder and managing partner of a16z crypto, the $7.6 billion digital assets arm of venture capital giant Andreessen Horowitz, announced that the firm had donated $25 million to cryptocurrency-focused super PAC FairShake, bringing a16z’s total spending to $47 million. One of the most active venture capital firms in the space, a16z crypto has backed a range of companies from Coinbase to OpenSea, and Dixon recently completed a global publishing tour for his paper on blockchain. Read, write, own.
A16z’s donation comes a day after another major cryptocurrency company, Ripple, announced a $25 million donation to FairShake, which has raised more than $100 million with its two affiliates.
Crypto industry advocacy in Washington has faced difficult prospects following the collapse of FTX in November 2022 and the shameful downfall of founder and mega-political donor Sam Bankman Freed, but the sector has been experiencing a resurgence in recent weeks, including several important legislative victories in Congress and a clear softening of the White House. Donald Trump has also been a supporter of the sector, recently attending a Libertarian Party event at Mar-a-Lago to show his support for crypto events.
A16z’s additional support for FairShake reflects a concerted industry effort to shake up key congressional races, including with cryptocurrency skeptic Sen. Sherrod Brown of Ohio, the Democratic senator who chairs the Senate Banking Committee. Digital asset-related super PACs, including FairShake, have raised the third-highest amount of money of all super PACs ahead of the 2024 elections, according to a recent report from consumer advocacy group Public Citizen. Other FairShake donors include Coinbase and the Winklevoss twins.
As Dixon noted in the accompanying tweet, super PACs have supported candidates on both sides of the aisle, but cryptocurrencies have been heavily favored by Republicans over the past year, including a series of bills spearheaded by House Financial Services Chairman Patrick McHenry (R-NC). Despite the Republican bias, recent votes have garnered bipartisan support, including a legislative effort to overturn a controversial Securities and Exchange Commission bulletin that passed the Senate by a 60-38 vote, although President Joe Biden has threatened a veto.
That may change given the events of the past two weeks. The SEC made a surprising about-face on a pending application for an Ethereum ETF. Industry analysts expected the application to be rejected, but the SEC approved it. Given Trump’s commitment to blockchain, some vocal industry voices have noted the about-face is a sign that Democrats want to avoid crypto becoming a partisan issue. With Fairshake’s funds growing and a fierce national election campaign just months away, the digital asset sector’s political offensive is just beginning.
