GOP to crypto: Show me the money

Republicans have delivered major wins for the crypto industry in Washington — and they're increasingly frustrated that its biggest political spender isn't stepping up for them in the midterms.

Why it matters: Crypto now commands the biggest political war chest of any industry in America — and how it deploys that cash could help decide the November elections.

Zoom out: The pro-crypto Fairshake super PAC has a massive $165 million.

• But the organization — which receives the bulk of its funding from Coinbase, a cryptocurrency exchange company — has yet to announce which races it will target.
• That has infuriated Republicans, who have promoted pro-crypto legislation including the CLARITY Act, which would define how digital assets are regulated. Republicans on Thursday advanced the bill out of the Senate Banking Committee, with all 13 GOP members voting in favor.
• Democrats, who are more skeptical of the industry, opposed it 9-2.

Friction point: Republicans say they are particularly alarmed that Fairshake has yet to say whether it will oppose Ohio Democrat Sherrod Brown, who is running for Senate this year after losing reelection in 2024.

• Fairshake announced its plans to target Brown in his 2024 campaign in March of that year. It went on to spend $40 million-plus to defeat Brown, who as Banking Committee chair was an outspoken crypto critic.
• Brown has since softened his posture, leading to concerns among Republicans that Fairshake will stay out of his race.
• Fairshake defenders say it's still early in the election year and that it has plenty of time to come out against Brown. But Senate campaign strategists are growing antsy and say having a clearer picture of the group's spending plans will allow them to budget for the fall.
• They also argue that the longer Fairshake waits to purchase pre-election advertising time, the more expensive it will be.

Another tension point has emerged in New Hampshire, where Democratic Rep. Chris Pappas is running for Senate.

• The Coinbase-backed advocacy group Stand With Crypto, whose ratings of lawmakers Fairshake has used to determine whom to support or oppose, improved Pappas' from an "F" to an "A" within 8 months last year.
• Republicans had hoped Fairshake would aggressively target Pappas — who voted against several pro-crypto bills — in the midterms.

Behind the scenes: Republicans have several theories for why Fairshake may be more hesitant to go all-in for Republicans this year.

• Some posit that the industry may be hedging its bets in the event Democrats take power after the election, while others speculate it doesn't want to alienate Democrats who will be key to passing pro-crypto legislation.
• Other Republicans note that Senate Minority Leader Chuck Schumer has softened his skepticism toward the industry.

What they're saying: "Despite Republicans leading on digital assets, members have noticed that the industry is not investing in the GOP's efforts to maintain control of the House and Senate in November," a Republican strategist who works on Senate campaigns tells Axios.

• A Fairshake spokesperson did not respond to a request for comment.
• Brown campaign Patrick Eisenhauer said the ex-senator "recognizes that cryptocurrency is a part of America's economy" and will "keep an open mind towards all issues as they come before the Senate."
• A Pappas spokesperson said "Congress has an obligation to provide common-sense safeguards and establish consumer protections for cryptocurrency."

Yes, but: Fairshake defenders note that the PAC is bipartisan and that its purpose isn't to reflexively support Republicans. Rather, it seeks to reward allies and punish critics of either party.

• While Fairshake and its affiliated groups spent more to support Republicans than Democrats in 2024, it backed Democratic candidates in key Senate races in Michigan and Arizona.
• That has led some pro-crypto Republicans — such as entrepreneurs Cameron and Tyler Winklevoss — to launch their own groups solely devoted to supporting GOP candidates.

The bottom line: Republicans need every possible edge to fend off Democrats in November. How Fairshake spends its massive war chest will be closely watched.