Crypto-Backed PAC Spends $850K to Support John Deaton Against Sen. Warren

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Hassan Shittu

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Hassan Shittu

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August 12, 2024

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A political action committee (PAC) with significant contributions from the crypto industry, including Ripple, has invested $850,000 to bolster Republican candidate John Deaton in the upcoming Massachusetts Senate primary.

John Deaton, a lawyer known for filing amicus briefs supporting crypto firms in legal battles against the US Securities and Exchange Commission, launched his Senate campaign in February.

Records from the Federal Election Commission (FEC) reveal that the Commonwealth Unity Fund Super PAC made a substantial impact with a $450,000 direct mail campaign on August 7 and over $500,000 in media buys on August 6. This follows an earlier media expenditure exceeding $300,000 in July.

Ripple and Winklevoss Brothers: What Their Support Means for Deaton’s Campaign

The Massachusetts primary, scheduled for September 3, is anticipated to be a key battleground for crypto interest groups in US elections.

Deaton, one of three Republicans vying for the US Senate seat representing Massachusetts in 2025, is notably supported by the crypto sector. Ripple, a significant player in the cryptocurrency space, donated $1 million to the Commonwealth Unity Fund in July to aid Deaton’s campaign.

Additionally, Gemini co-founders Cameron and Tyler Winklevoss contributed a maximum of $6,600 each to Deaton’s campaign in April and pledged a combined $1 million in July, although it remains unclear if these funds will directly support his campaign or associated PACs.

However, support for Deaton is not universal within the crypto industry. Wyoming Senator Cynthia Lummis, a Bitcoin advocate, endorsed Republican Ian Cain over Deaton in July, praising Cain’s grasp of the “digital economy” and innovation.

As of June, polls indicated Senator Warren was leading by at least 20 points against both Cain and Deaton. Warren is running unopposed in the Democratic primary, further highlighting the competitive nature of the upcoming Senate race.

According to Federal Election Commission (FEC) records, as of July 31, 2024, John Deaton had raised approximately $1.7 million for his campaign, with around $1 million in cash on hand. In comparison, Senator Elizabeth Warren had raised about $6.4 million since January 2023 and reported having roughly $4.9 million in cash on hand as of July.

Can Deaton’s Crypto Commitment and PAC Support Overcome Warren’s 20-Point Lead?

On July 27, John Deaton revealed that 82% of his net worth is invested in Bitcoin. Speaking at the Bitcoin 2024 conference in Nashville, Deaton, challenging incumbent Senator Elizabeth Warren, criticized her support for a central bank digital currency (CBDC) based on a 2022 interview.

Deaton disclosed his Bitcoin holdings to the Federal Election Commission, emphasizing his commitment to the crypto space. Despite his efforts, a May 30 YouGov poll showed Senator Warren leading by over 20 points.

In related news, on May 30, pro-crypto PAC Fairshake received a significant boost with a $25 million donation from Andreessen Horowitz’s crypto fund. This donation and Ripple’s $25 million contribution on May 29 bring a16z’s total contributions to $47 million over two years.

The funds aim to support candidates from both parties who advocate for clear regulations for digital assets, reflecting the crypto industry’s push for bipartisan support ahead of the November US elections.