Crypto Companies Pour Millions into Arizona Elections to Influence Political Outcomes

In a bold move to shape political landscapes, cryptocurrency advocates have invested heavily in Arizona's primary elections, with significant implications for future races.

This year alone, crypto corporations have funneled an estimated $120 million into federal election campaigns, primarily through nonpartisan super PACs aimed at supporting pro-crypto candidates while targeting those skeptical of the industry.

As the general election approaches, the trend of crypto spending is expected to continue, with a particular focus on the Congressional District 1 race. During the primary, Protect Progress, one of the three super PACs backed by crypto interests, allocated over $400,000 to bolster the campaign of Andrei Cherny, a former White House aide and Democratic state chair.

However, Cherny's support came at a cost, as he was also positioned against Amish Shah, who ultimately won the primary. Shah, an ER physician and former state lawmaker, received an F rating from the advocacy group Stand With Crypto, which labeled him as “strongly against crypto.” Shah is now set to face off against incumbent Republican David Schweikert in what is considered one of the most competitive congressional races in the nation, with the Cook Political Report categorizing it as a toss-up.

In Congressional District 3, Protect Progress directed nearly $1.4 million in spending to support Yassamin Ansari, who narrowly defeated Raquel Terán. Ansari is now favored to win the seat vacated by Ruben Gallego, in a district where Democrats hold a significant 30-point advantage over Republicans in registered voters.

The crypto sector's influence may also extend to the Congressional District 6 race, where first-term Republican U.S. Rep. Juan Ciscomani, viewed as a strong ally by Stand With Crypto, is competing against Democrat Kirsten Engel. The Cook Political Report has also classified this race as a toss-up.

While the quarterly spending reports for the general election are still pending, there is little indication that crypto funding will diminish. The emergence of crypto companies as political influencers comes at a critical juncture, as major firms face lawsuits from federal regulators regarding trading practices and customer asset management.

With the recent surge in crypto prices, advocates are eager to elect politicians who will support legislation clarifying the classification of cryptocurrencies and establishing regulatory frameworks. According to consumer advocacy group Public Citizen, spending from the crypto sector has accounted for nearly half of all corporate contributions in this election cycle.

The super PAC Fairshake has notably spent $10 million on advertisements attacking progressive candidate Katie Porter, who is in a runoff against U.S. Rep. Adam Schiff for a Senate seat. Porter has raised concerns about the environmental impact of cryptocurrency mining and its connection to climate change.

The defeat of New York U.S. Rep. Jamaal Bowman, which Fairshake targeted with $2 million in spending, underscores the growing political clout of crypto advocates.

Looking ahead, it remains uncertain when crypto interests might begin to exert similar influence in Arizona's state legislative races. Numerous bills aimed at promoting cryptocurrency adoption have been introduced, including proposals to allow residents to pay state fines and taxes with digital currency and to direct the state retirement system to explore investments in digital assets. Some of these initiatives have garnered floor votes, with a few even being enacted.

The heavy spending against Shah and Terán was largely a reaction to their opposition to just one crypto-related bill, highlighting the perceived threat that critics pose to a sector still striving for stability. As the election date of November 5 approaches, voters should remain vigilant against the barrage of attack ads fueled by crypto interests.