U.S. Rep. John Curtis speaks during the Utah Senate primary debate for Republican contenders vying to win the seat of retiring U.S. Sen. Mitt Romney, June 10, 2024, in Salt Lake City.
Rick Bowmer | AP
SALT LAKE CITY — John Curtis, a Republican congressman from Utah, has become a darling of the crypto industry in his bid to win the Senate seat held by the retiring Mitt Romney. It took a somewhat circuitous route through the telecommunications sector to get there.
At an event in Salt Lake City last week, Curtis told a few dozen crypto enthusiasts that he had a conversation a few years ago with some House members about ISPs and how to get them to step up their offerings. Different lawmakers were saying different connection speeds — 50 megabits, 100 megabits — but when Curtis asked if they would ever do a speed test, he got cryptic answers.
“They looked at me like I was from another planet,” Curtis told the crowd Without permission conference.
Curtis, 64, said he realized then that lawmakers needed to be smarter about regulations and really understand the user experience. That’s especially true in crypto, he said.
“This is so important for the government to get involved, because if they don’t understand what you’re doing, they’re going to make really bad decisions,” the Provo-based lawmaker said, as attendees shook their heads in unison. “The worst part of regulation is its unpredictability.”
Curtis’ stance on cryptocurrencies is a big reason why digital currency enthusiasts have filled his coffers in his campaign against Democratic candidate Caroline Gleich, leading him to a landslide victory next month.
Defend American Jobs PAC, a single-issue committee focused on cryptocurrency and blockchain policy, contributed more than $1.9 million to the Curtis campaign, according to Federal Election Commission data compiled by crypto and blockchain market analyst James Delmore and verified by CNBC. In addition, the PAC spent more than 1.5 million dollars to oppose Curtis’ Republican nominee, Trent Staggs.
Ben Lucas, a spokesman for Curtis’ campaign, declined to be interviewed on the congressman’s behalf. He sent a statement from Corey Newman, the chief of staff, saying, “John has always been a strong supporter of the crypto industry as it will help Utah’s economy continue to grow and be a great place to create jobs. “.
The sprawling and decentralized digital asset industry supports Curtis and others who publicly embrace a pro-crypto policy in their campaigns. The crypto industry accounts for nearly half of all corporate donations this election cycle, with the industry outpacing both big banks and oil. Of the initial 42 candidates supported by crypto-backed super PACs, 36 were successful.
In total, crypto groups have spent more than $130 million on congressional races for this year’s elections, including primaries, according to FEC data.
Crypto chooses its targets
Venture capital firm Andreessen Horowitz found in its recent State of Crypto report that more than 40 million Americans own crypto, a group that is young and bipartisan. The report said 51% of them said they were likely to throw their weight behind crypto-friendly candidates.
Curtis says the best thing the industry can do is police itself and then come to lawmakers with the right kind of guardrails, striking a balance of safety and security without over-regulation.
Three crypto PACs, which are mainly supported by CoinbaseRipple and Andreessen Horowitz are targeting competitive US Senate and House races
Protect Progress has given more than $10 million each to Senate candidates in Arizona and Michigan. In Arizona, the group favors Democrat Ruben Gallego, who is running for the seat vacated by Kyrsten Sinema. In Michigan, the preferred choice is Elissa Slotkin, who is currently a Democratic House member.
US Senator Elizabeth Warren (D-MA) gets emotional as the crowd cheers on Day 4 of the Democratic National Convention (DNC) at the United Center in Chicago, Illinois, USA, August 22, 2024.
Kevin Wurm | Reuters
Republican candidates in Indiana and West Virginia have received more than $3 million from Defend American Jobs. In Massachusetts, a super PAC for Republican John Deaton has raised $2.6 million from the crypto industry. Deaton, however, is far behind Democratic Sen. Elizabeth Warren, who is one of the crypto sector’s leading opponents in Washington.
“Elizabeth Warren is not going to lose her election in Massachusetts, so the industry can’t get rid of Warren,” Delmore said. “But they can at least help vote for candidates who are allied with her against the crypto industry.”
A big target is Ohio Democratic Sen. Sherrod Brown, the chairman of the banking committee. About $40 million in crypto money has gone toward defeating Brown, and a PAC paid for five ads designed to boost awareness of his Republican opponent, Bernie Moreno, a blockchain entrepreneur. The race right now is very close and is critical in determining which party will control the Senate.
In House races, about $3.6 million in crypto PAC money has gone to candidates in Arizona, $5.4 million in New York, more than $4.8 million in Virginia and $5.7 million in California, with half of that to go to Republican Michelle Park Steel.
Crypto PAC money was party agnostic and not just focused on battleground areas. The focus is on supporting lawmakers who embrace regulations that favor the technology rather than stand in its way.
“When we talk about digital assets, when we talk about crypto, it’s not about Republicans and Democrats,” House Majority Whip Tom Emmer (R-Minn.) told Permissionless. “This is about Americans, it’s about decentralizing a system that is, literally, entrenched at the top.”
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