Crypto's $130 million election binge boosted Utah's John Curtis

SALT LAKE CITY — John Curtis, a Republican congressman from Utah, has become a popular figure in the crypto industry as he seeks to win the Senate seat held by outgoing Mitt Romney. To get there, he took a rather long path through the telecommunications sector.

At an event in Salt Lake City last week, Curtis told dozens of crypto enthusiasts that several years ago he and several members of Congress talked to internet service providers about how to incentivize them to enhance their services. He said he talked about it. Various lawmakers were considering various connection speeds, including 50 megabits and 100 megabits, but when Curtis asked if they had ever done a speed test, the answer was puzzling.

“They looked at me like I was from another planet,” Curtis told the audience at the Permissionless conference.

Curtis, 64, said he realized then that lawmakers needed to be smarter about regulation and really understand the user experience. That's especially true for cryptocurrencies, he said.

“It's very important to get the government involved, because if they don't understand what they're doing, they're going to make very bad decisions,” the Provo-based lawmaker said. The attendees nodded in unison. “The worst part of regulation is its unpredictability.”

Curtis' stance on cryptocurrencies is a big reason why digital coin enthusiasts are filling his coffers in his race against Democratic candidate Caroline Gleich and preparing him for what appears to be a landslide victory next month. are.

According to Federal Election Commission data compiled by crypto market and blockchain analyst James Delmore and reviewed by CNBC, Defend American Jobs, a single-issue committee focused on crypto and blockchain policy, The PAC reportedly donated more than $1.9 million to Curtis' campaign. In addition, the PAC spent more than $1.5 million against Curtis' Republican primary challenger, Trent Staggs.

Ben Lucas, a spokesman for the Curtis campaign, declined to be interviewed on behalf of the congressman. “John has always been a strong supporter of the crypto industry, as it continues Utah's economic growth and makes it a great place to create jobs,” he said in a statement from Chief of Staff Corey Newman. ” he said.

The vast and decentralized digital asset industry supports Curtis and others who have publicly adopted pro-cryptocurrency policies within their campaigns. The crypto industry has outpaced both big banks and oil, accounting for nearly half of corporate donations during this election cycle. Of the 42 primary candidates supported by crypto-backed super PACs, 36 were successful.

In total, crypto groups spent more than $130 million on Congressional races this year, including primaries, according to FEC data.

In its recent “State of Crypto” report, venture firm Andreessen Horowitz found that more than 40 million Americans own cryptocurrencies in a young and bipartisan manner. According to the report, 51% of them said they were more likely to support a crypto-friendly candidate.

Curtis said the best thing the industry can do is police itself and then have lawmakers come in with the right kind of guardrails and balance safety and security without over-regulation. say.

Three Crypto PACs, Mainly Backed coinbaseRipple and Andreessen Horowitz have targeted competitive Senate and House races across the country.

Protect Progress has donated more than $10 million each to U.S. Senate candidates in Arizona and Michigan. In Arizona, he is supporting Democrat Ruben Gallego for the seat being vacated by Kyrsten Sinema. In Michigan, current Democratic Congresswoman Elissa Slotkin is the most likely choice.

Republican candidates in Indiana and West Virginia each received more than $3 million from Defend American Jobs. In Massachusetts, Republican John Deaton's super PAC raised $2.6 million from the crypto industry. But Deaton lags far behind Democratic Sen. Elizabeth Warren, one of the crypto sector's biggest opponents in Washington.

“Elizabeth Warren is not going to lose the Massachusetts election, so the industry can't oust her,” Delmore said. “But they will at least help vote out candidates who are allied with her against the crypto industry.”

One major target is Ohio Democratic Sen. Sherrod Brown, chairman of the Banking Committee. About $40 million in crypto money went toward defeating Brown, with one PAC paying for five ads designed to raise the profile of his Republican rival, blockchain entrepreneur Bernie Moreno. The race is currently very close and will be crucial in determining which party controls the Senate.

In the House races, about $3.6 million in cryptocurrency PAC money went to candidates in Arizona, $5.4 million in New York, more than $4.8 million in Virginia, and $5.7 million in California, half of which went to Republican Michel. – Passed to Mr. Park Steele.

Crypto PAC money is party-agnostic and does not focus solely on battleground states. The focus is on supporting legislators to adopt regulations that favor technology rather than hinder it.

“When we talk about digital assets, when we talk about cryptocurrencies, it's not a Republican versus Democratic issue,” House Majority Whip Tom Emmer (R-Minn.) said on Permissionless. “It's an American problem, and it's a problem with decentralizing a system that is literally integrated at the top.”

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