Scaramucci and Bankman-Fried Plan Support Crypto PACs
Samuel Bankman-Fried, the founder and CEO of FTX, speaks during a Senate Committee on Agriculture, Nutrition, and Forestry hearing on Capitol Hill in Washington, D.C., on “Examining Digital Assets: Risks, Regulation, and Innovation.”
An urgent ad campaign in support of congressional candidates is being planned by a network of political action committees backed by key figures in the bitcoin business, according to one of the organizations’ main strategists.
The strategist stated that two super PACs funded by crypto executives, Web3 Forward and Crypto Innovation, are both anticipated to spend at least six figures on an ad blitz commencing in two weeks. To speak candidly about the private plans, this person chose not to give their name.
Just a few days prior to the midterm election day on November 8, the groups intend to spend money on TV advertising supporting politicians on both sides of the political spectrum. The PACs are still deciding which politicians they will support, but their initial target states are California, Oregon, Colorado, and Texas.
According to Federal Election Commission records, during the primary season, Web3 Forward sponsored Democrats running for Congress while Crypto Innovation supported Republicans. Since September, when the primary elections were winding down, neither PAC has made an independent expenditure.
Data from the impartial OpenSecrets show that eight of the nine candidates Web3 Forward supported in the 11 House and Senate races were victorious. Among the candidates for Congress was John Fetterman, a senatorial contender from Pennsylvania, on whose behalf the PAC spent $212,000.
Seven campaigns received investment from Crypto Innovation, and five of its chosen candidates won. They included Ted Budd, the Republican senatorial candidate from North Carolina who has former president Donald Trump’s support.
The cryptocurrency PACs’ expenditure will contribute to a wave of money that is projected to make these the most costly midterm elections ever. Already, TV, radio, and digital advertisements have received $6.4 billion.
Democrats bare a narrow majority in both the House and the Senate. Democrats are forced to rely on Vice President Kamala Harris to break ties in the Senate because each party has a 50-50 majority.
The outcome of several Senate contests, including those in Georgia, Nevada, Pennsylvania, and Arizona, will decide which party will be in control of the Senate. Numerous contests across the nation will determine whether Democrats can maintain their eight-seat lead in the House.
The GMI PAC, a different super PAC that has received significant funding from cryptocurrency leaders, is the main source of funding for Web3 Forward and Crypto Innovation. The donations include $2 million from FTX CEO Samuel Bankman-Fried in January.
A further $1 million each was given to the organization in May by Marc Andreessen and Ben Horowitz, the managing partners of the venture capital firm Andreessen Horowitz, according to records. Cryptocurrency-related businesses are included in the firm’s portfolio.
According to an FEC filing, Anthony Scaramucci, the former director of communications for the Trump White House and founder of SkyBridge Capital, gave $100,000 to Crypto Innovation in March.
Founders of Framework Ventures, Dan Matuszewski, Vance Spencer, and Ryan Salame, CEO of FTX Digital Markets, make up the original board of directors of GMI PAC.