Crypto Industry's New Political Strategy
The cryptocurrency industry has adopted a controversial new tactic against political candidates who support consumer protections for digital assets: labeling them as corrupt.
In two key Illinois congressional primaries, a crypto political action committee called Fairshake PAC is spending millions to attack Democratic candidates who voted for cryptocurrency regulations. The PAC has already invested $3.3 million in negative advertising against state Sen. Robert Peters and state Rep. La Shawn K. Ford, according to analysis from a Chicago political consultant.
The Anti-Corruption Irony
Jeff Hauser of the Revolving Door Project, a crypto industry critic, noted the irony: "We're in a very anti-corruption moment, and you know that is true because one of the most corrupt actors in the country is trying to appropriate an anti-corruption argument."
Both targeted candidates supported Illinois' Digital Assets and Consumer Protection Act, which requires crypto companies to register with the state and comply with local regulations to serve Illinois residents. The industry has long opposed such state-level regulations, preferring looser federal oversight.
The Attacks in Detail
Against Robert Peters
Fairshake mailers accuse Peters of being a "corporate pawn" and "bankrolled by special interests" based on his campaign contributions. Peters, who is endorsed by progressive icons Bernie Sanders and Elizabeth Warren, responded: "It was paid for by Trump's top donors, to make sure they buy a lapdog in this congressional seat who will let them avoid all regulation."
Two of Peters' opponents, Jesse Jackson Jr. and Donna Miller, have received A ratings from industry group Stand With Crypto for promising to pass industry-friendly legislation.
Against La Shawn K. Ford
Ford has been targeted with $2.5 million in attack ads, including television spots highlighting a 2012 bank fraud indictment that was ultimately reduced to a misdemeanor tax charge. Local media have called the ads misleading, and Ford's campaign has sent Fairshake a cease-and-desist letter.
"I think that it's slander," Ford told The Intercept. "They are misleading voters. Even though they know that the Department of Justice dropped those charges, and yet they mislead voters."
The Trump Connection
Ford noted that industry figures including Coinbase CEO Brian Armstrong have worked closely with former President Donald Trump to secure favorable regulations. Coinbase donated $1 million to Trump's inaugural fund in December 2024 and has contributed to Trump's White House ballroom project.
"It's funny, because they are cronies with Donald Trump and they want to say that I'm not fit to go to Congress," Ford said. "Yet Donald Trump was actually convicted on 34 counts, and they support him for president."
Fairshake declined to comment on the attacks.
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!