Why a crypto group is spending $12 million on Ohio's Senate race

COLUMBUS, Ohio (WCMH) -- Ohio is home to the most expensive U.S. Senate race of 2024 in ad spending, and some of that money is coming from a pro-cryptocurrency group trying to tip the scales in favor of its preferred candidate.

The Election Day matchup between incumbent Democratic Sen. Sherrod Brown and his Republican counterpart, Cleveland businessman Bernie Moreno, will potentially determine which party controls the U.S. Senate for the next two years. The crucial race has seen more money spent in advertisements than almost any senatorial election ever, according to data from AdImpact.

As of Aug. 9, AdImpact reported that $323.7 million had already been spent or reserved on ads in the race between Brown and Moreno. That would rank it as the third-highest senatorial race in ad buys ever recorded by the group, behind Georgia's Senate races in 2020 and 2022.

Some of that money, just over $12 million, was spent in support of Moreno by the super PAC Defend American Jobs, which is itself an affiliate of a pro-crypto super PAC called Fairshake. The latter's website advertises its support for "blockchain," a technology commonly associated with Bitcoin and other cryptocurrencies.

Fairshake also has prominent backing from the CEO of Coinbase, the United States' largest marketplace for buying cryptocurrency. At the Messari Mainnet conference in September 2023, executive Brian Armstrong announced he personally donated $1 million to Fairshake, with donations from Coinbase itself to follow.

"Hopefully we can get them over $50 million plus, where they can really have a conversation with every single one of these candidates that are contesting open congressional seats, and say, 'Look, we're here to educate you about crypto, but at the end of the day, we need to know are you with us or against us?'" Armstrong said. "I think in 2024, some people need to win an election or lose an election because of their crypto stance, and D.C. is suddenly going to take this very seriously no matter what age they are."

Brown, for his part, has shown opposition to the millions pouring in from lobbying firms.

"Outside groups are spending record amounts to try to defeat Sherrod because they know he will always fight for Ohio, not special interests," campaign spokesperson Reeves Oyster said in a statement to NBC4.

Fairshake, through its affiliate PAC, could be taking an interest in the Ohio Senate race thanks to Brown's support for a crackdown on cryptocurrency. As chairman of the U.S. Senate Committee on Banking, Housing, and Urban Affairs, the incumbent senator called for regulating cryptocurrency and protecting consumers at a committee hearing in February 2023. He proposed what he called "basic principles" of regulation, which included:

• Clear disclosures and transparency
• Prohibitions on conflicts of interest and self-dealing
• Protecting customer funds
• Internal governance and risk management
• Strong consumer and investor rights and protections
• Anti-money laundering and fraud
• Oversight and supervision

In those remarks, Brown said, "Crypto isn’t special. We can start with these commonsense principles as we consider a regulatory framework for digital assets that puts consumers first and keeps our financial system safe."

While Brown called these "commonsense principles," Moreno attempted to paint his opponent's positions as extreme. In a statement to NBC4, he went after the incumbent senator as unqualified to pass legislation on cryptocurrency.

"A career politician like Sherrod Brown has absolutely no idea how digital currencies work and is the least qualified person possible to regulate the industry," Moreno said. "Innovation is what built America into the greatest country on earth. Sadly, left-wing extremists like Brown want more governmental control to restrict the ability of Americans to invest freely in cryptocurrencies."

Most of Moreno's recent comments on the topic have targeted his Democratic opponents. But in a March 2022 post on X, he said, "Until the financial world realizes their system needs an overhaul, Bitcoin will continue to grow and become widely accepted."

Stand With Crypto, an advocacy group also started by Coinbase, collected each candidates' tweets and votes to analyze their support for Bitcoin and other cryptocurrency. Moreno received an "A" grade, claiming 22 of his statements show he "strongly supports crypto." Conversely, the same group gave Brown an "F" grade, using 17 of his statements to claim he is "strongly against crypto."

With Moreno's war chest growing, former Republican Rep. Steve Stivers also shared insight into the hopeful's spending plan.

“Moreno made a strategic move to wait to spend until he saw the whites in their eyes,” Stivers told the Hill. “The question is: did he wait too long?”

The deadline to register to vote is Oct. 7. Election Day is on Nov. 5, less than 70 days away, with early voting beginning on Oct. 8.