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A prominent Democratic consulting firm is pinning its hopes on a new super PAC in the crypto industry. Now that these groups have set their sights on the Senate races in Ohio and Montana, a scenario that could destroy the Democratic majority, will consultants continue to ride the crypto gravy train?
Political consulting is a mercenary business. It's no wonder that a major consulting firm wants a piece of the huge amount ($85 million as of January) that crypto companies and investors have poured into three affiliated super PACs. Still, it is unlikely that party leaders would tolerate vendors working with the group if they challenged the Democratic Senate majority.
Amid a troubling turn of events, Impact Research, one of the crypto super PAC vendors, is helping Democrats retain their Montana Senate seat. Now, the company's customers may want to turn their seats red.
rolling stone We reached out to the consultants to ask if they plan to continue working in the crypto group, but they did not respond. The Democratic Senatorial Campaign Committee (DSCC), the party organ responsible for selecting Democratic members of Congress, did not respond to questions about the crypto consulting run's huge success.
For now, the threat of cryptocurrencies to the Democratic Senate majority is only implicit: a spokesperson for FairShake, one of the crypto super PACs, recently said: new york times The super PAC is said to be involved in the Senate general elections in Ohio and Montana.of times The super PAC reported that it had “not yet decided whether to oppose or support” Democratic incumbents Sen. Sherrod Brown (Ohio) and Sen. Jon Tester (Montana), but added that it was “not sure which direction Fair Shake will take.” The signs are clear that this is where we're headed,” he added.
That's because both Mr. Brown and Mr. Tester have criticized cryptocurrencies. Cryptocurrencies are decentralized digital assets with no intrinsic value or clear use case. In 2022, Tester called cryptocurrencies “bullshit” and said, “I don't see any reason why something like this should exist.” He added that if Congress passes new cryptocurrency regulations, people might “think it's real.” Last fall, Brown sent a letter to the Biden administration warning that the lack of transparency and disclosure in the cryptocurrency market was benefiting fraudsters and harming consumers. He also praised the administration for “leveraging its tools to crack down on abuses and enforce the law.”
In recent years, the cryptocurrency industry has faced increasing scrutiny in Washington. Two of FairShake's largest donors, cryptocurrency exchange Coinbase and crypto solutions company Ripple Labs, have been charged by the Securities and Exchange Commission with violating federal securities laws. (Venture capital firm Andreessen Horowitz, FairShake's other major donor, has invested in both Coinbase and Ripple, according to its website.)
Now, the industry is planning a big-money congress with lawmakers aiming to pass new crypto-friendly regulations to protect cryptocurrencies and solidify their place in the market. “We will have the resources to make an impact on race and organizational structure at all levels,” a FairShake spokesperson said. times. “And we will strategically leverage those assets to maximize their impact to build a sustainable, bipartisan cryptocurrency and blockchain coalition.”
According to the newspaper, elected officials in the affected elections will receive an “industry-related survey asking them to document their position on crypto issues.”
FairShake did not respond to requests for comment. rolling stone.
Coinbase has donated more than $23 million to Fairshake and its affiliated super PAC, Protect Progress. Kara Calvert, head of U.S. policy at Coinbase, said: times Tester and Brown don't necessarily have a “target on their backs.” She explained: “What I'm saying is I think there's an opportunity and there's a critical period between now and the election where a lot of policymakers have to make some decisions. Clear rules and consumption. Is it for the protection of others? Or is it not?”
This threat is clear and crypto interests are not hiding it. Tester and Brown could reverse their positions on crypto or face an onslaught of super PACs. The fact that Democrats cannot afford to lose either seat makes this threat even more powerful. If one side loses, Republicans will control the Senate.
Brown and Tester's campaigns did not respond to requests for comment.
It is not yet clear whether Democratic consultants will continue to work with crypto super PACs or whether they will face any pressure from the party to remove their clients.
“If FairShake and Protect Progress are going to target the most vulnerable Democratic senators and jeopardize the majority, it is the responsibility of Democratic consultants not to work with them,” said progressive fundraising firm Left Rising. Conor Farrell, who runs the “They're literally going to help elect Republicans and support the MAGA agenda.”
At least four major Democratic consulting firms are working with FairShake and Protect Progress. That includes polling firms Impact Research and Global Strategy Group, which have raised $274,000 and $128,000, respectively, from super PACs.
Impact Research led President Joe Biden's polling team in 2020. The company, formerly known as ALG Polling, has worked with Tester's campaign as well as the DSCC and the Montana Democratic Party during this election cycle. Impact Research has also recently worked with the Democratic Congressional Campaign Committee (DCCC), which selects House Democrats.
The Global Strategy Group has been working on this cycle with the DSCC and DCCC, as well as the super PACs affiliated with these party committees, the House Majority PAC and the Senate Majority PAC.
FairShake and Protect Progress paid Democratic ad-buying firm Target Platform Media nearly $13 million. During the 2020 cycle, the company and its affiliate Buying Time bought ads for Senate Majority PAC and DCCC.
Since January, Democratic direct mail company Mission Control has been paid $438,000 by Protect Progress. The firm has done significant work for the House Majority PAC this year.
Three of these companies, Impact Research, Mission Control, and Target Platform Media, are also active in super PACs affiliated with the pro-Israel lobby in Washington, the American Israel Public Affairs Committee (AIPAC), according to reports. AIPAC will reportedly eliminate candidates in this year's Democratic primary who do not support Israel's brutal war in Gaza.
“Let's take the NRA by the way and see if they're still bipartisan,” Farrell says jokingly.
