‘Short-sighted and Stupid’: Democratic Megadonor Exits Crypto Super PAC Over Republican Endorsement

TLDR

• Billionaire Democratic donor Ron Conway has split from the crypto-aligned super PAC Fairshake.
• The split occurred after Fairshake pledged $12 million to back Republican Bernie Moreno against Democratic Senator Sherrod Brown in Ohio.
• Conway, who donated $500,000 to Fairshake, was not informed of this decision beforehand.
• Conway criticized the move as “short-sighted and stupid,” potentially jeopardizing efforts to pass crypto-friendly legislation.

Billionaire Democratic donor Ron Conway has severed ties with Fairshake, a network of crypto-aligned super Political Action Committees (PACs), following a decision to back a Republican candidate.

The split underscores growing tensions within the cryptocurrency industry as it navigates political allegiances and legislative strategies.

Conway, a prominent tech investor who contributed $500,000 to Fairshake in December, expressed outrage after learning the PAC had pledged $12 million to support Bernie Moreno, the Republican challenger to Democratic Senator Sherrod Brown of Ohio.

The decision was made without Conway’s knowledge, despite his significant donation and active role in advocating for the crypto industry’s interests on Capitol Hill.

In an email to other influential figures in the crypto industry and PAC members, including Coinbase CEO Brian Armstrong and Ripple CEO Brad Garlinghouse, Conway criticized the move as “short-sighted and stupid.”

He argued that the decision could potentially undermine ongoing efforts to pass crypto-friendly legislation in Congress, particularly at a time when Senate Majority Leader Chuck Schumer is working to push a crypto regulation bill through the Senate.

“$12M to Brown’s opponent at a time when Sen Schumer is doing his best to get a bill passed in the Senate in the lame duck,” Conway wrote in the email. “You all know that is ‘slap in the face’ to Sen Schumer And a ‘slap in the face’ to me when you know I’m meeting him in SF tomorrow.”

Conway’s frustration stemmed not only from the decision itself but also from the lack of communication.

“NOT ONE PERSON BOTHERED TO GIVE ME A HEADS UP THAT YOU WERE DOING THIS,”

he wrote, emphasizing his long-standing personal relationships and efforts to help the crypto movement.

The incident has brought to light what Conway describes as two factions within the crypto political landscape: “a moderate faction and a Donald Trump faction.” He directly named Armstrong and Marc Andreessen, co-founder of Andreessen Horowitz, as being in the latter camp.

Conway also pointed out that while Fairshake plans to support an equal number of Democrats and Republicans running for Congress, a majority of the Republicans the PAC is backing are in “must-win districts for Dems if they have any chance of taking back the House.” This strategy, he argues, could potentially harm Democratic efforts to regain control of the House of Representatives.

The split comes at a crucial time for the crypto industry’s political efforts. The sector has been spending millions of dollars to support candidates who will favor it in Congress and to challenge those who have pledged to back laws it deems unfavorable.

The industry recently saw a victory with the passage of the Financial Innovation and Technology for the 21st Century Act (FIT21) in the House, which garnered support from 71 Democrats.

Conway’s departure from Fairshake highlights the delicate balance the crypto industry must maintain as it seeks bipartisan support for favorable legislation.

The incident also raises questions about the industry’s political strategy moving forward, particularly as it relates to maintaining relationships with key Democratic lawmakers while also pursuing broader political support.

As the 2024 election approaches, the crypto industry’s political spending and strategies are likely to come under increased scrutiny.