WASHINGTON, D.C. — The contest between Senator Sherrod Brown and Bernie Moreno in Ohio is poised to become the costliest Senate election ever recorded. A significant player in this financial battle is the cryptocurrency sector, which is investing tens of millions to influence the outcome against Brown, who has been openly critical of the industry.
Key Points to Consider
- The cryptocurrency sector ranks among the leading external funding sources in this crucial Ohio Senate race
- A super PAC backed by crypto firms has invested $40.1 million to unseat Senator Sherrod Brown, who has voiced skepticism about the industry
- Additionally, the crypto industry is focusing on funding candidates nationwide who support their agenda
The super PAC Defend American Jobs has contributed $40.1 million to the campaign. This group is linked to Fairshake, another super PAC supported by major players like Coinbase and Ripple.
Advertisements from Defend American Jobs highlight Moreno’s viewpoints on social security, energy, and immigration issues, but they do not address cryptocurrency directly. The aim is to elevate Moreno’s standing as he competes against Brown.
As the influential chair of the Senate Banking Committee, Brown holds significant power to veto legislation aimed at easing regulations on crypto assets, a measure referred to as FIT 21. If passed, this bill would reclassify numerous types of crypto as commodities, which generally face less rigorous regulations than financial securities such as stocks and bonds. While the House has approved the bill, it remains under consideration in the Senate Banking Committee.
Brown has consistently expressed doubts about allowing the cryptocurrency sector to relax its regulations.
“The FTX debacle highlighted the potential risks associated with crypto,” Brown stated during a Banking Committee session in September 2023, referencing the 2022 failure of the cryptocurrency exchange FTX. “However, FTX wasn’t an isolated incident; it was simply the most prominent example of the inherent problems within crypto: lack of transparency, conflicts of interest, and unsafe financial practices using customer deposits… Ultimately, this leads to billions lost for consumers.”
Moreno is perceived as more accommodating toward cryptocurrency enterprises. The businessman has previously launched a digital vehicle titling service leveraging blockchain technology, which is also the foundation for cryptocurrencies.
“I sold my Bitcoin to avoid any insinuations that I’m pro-crypto for personal gain,” Moreno told FOX News in a June interview. “It’s vital we have individuals who grasp the technology and ensure regulatory clarity, enabling the advancement of this and future technologies right here in America.”
Moreno’s team provided a statement saying,
“Sherrod Brown is the most anti-crypto senator, even threatening an outright ban. The cryptocurrency industry recognizes that Bernie will support personal freedoms and legislation allowing Americans to manage their financial decisions. Unlike Sherrod, who seemingly doesn’t understand the difference between blockchain and a chainsaw, Bernie possesses a genuine understanding of the technology, recognizing what it will take to cultivate its growth in America and ensuring the country remains a leader in this field.”
Brown’s campaign opted not to comment on this matter.
The crypto industry’s backing of Moreno aligns with a larger initiative to empower crypto-friendly lawmakers across the country. As of August, crypto organizations accounted for almost half of all corporate donations in the current federal election cycle. Fairshake has invested $132.4 million in this election year.