Crypto weighs revenge against Democrats — and the risks that come with it

Some crypto executives have publicly signaled an appetite in recent days for punishing Democrats. But a partisan strategy carries major political risk for the industry: A broad offensive against Democrats ahead of an election where they have a chance to reclaim power on Capitol Hill could further alienate lawmakers the industry may soon need to revive its agenda.

“As much as some people may want to, they can’t wave a wand and make Democrats go away,” said Sheila Warren, the former CEO of the Crypto Council for Innovation, an industry trade group. “Every industry — not just crypto — has to figure out what to do with that reality.”

The crypto industry’s spending could have immediate consequences after the election. Democrats are signaling that a Senate GOP-aligned spending spree would suppress any appetite for lame duck dealmaking involving the Clarity bill — although it remains a long shot that it would come back to life regardless. A Senate Democratic aide involved in the crypto effort said a full-scale assault on the party’s Senate candidates “would absolutely eviscerate any hope” of a post-election deal.

The Fairshake PAC group, funded primarily by crypto firms Coinbase and Ripple and venture capital giant Andreessen Horowitz, had more than $120 million at its disposal as of the end of August. It has previously deployed its war chest to help members of both parties who support industry-friendly policies.

Fairshake is preparing to announce additional spending decisions supporting both Democrats and Republicans in the coming days, according to a spokesperson for the group, Geoff Vetter. But it’s unclear what races — or which chamber — it will target next.

Kara Calvert, Coinbase’s vice president of U.S. policy, said in an interview that bipartisanship has been crypto’s “superpower.”

“Nobody is eager to erode that,” she said.