Shomari Figures, a candidate with strong progressive credentials and a history in Washington, recently clinched the Democratic nomination for Alabama’s 2nd Congressional District, thanks in part to substantial financial backing from the cryptocurrency industry. Figures, who has openly supported crypto initiatives, received $2.7 million in indirect campaign support from the crypto-focused political action committee (PAC), Protect Progress, which significantly outpaced fundraising efforts of his primary opponents.
Strategic Support for Crypto-Friendly Candidates
This influx of support from Protect Progress, a branch of the influential crypto industry group Fairshake, underscores the crypto community’s strategy to foster legislation favorable to digital assets. Figures, with his experience in both the Obama White House and working for Senator Sherrod Brown, has pledged to support the burgeoning field of digital assets, which likely secured him the financial backing of the PAC.
Impact of PAC Funding in the Race
The $2.7 million spent by the PAC represents the largest sum directed towards any Democratic congressional candidate this cycle, highlighting the significant role that independent expenditures play in shaping electoral outcomes. The funds primarily went towards advertising, aiming to bolster Figures’ visibility and appeal in a district recently redrawn to favor Democratic candidates. In contrast, Figures’ primary opponent, Anthony Daniels, lacked similar PAC support and raised slightly less in direct contributions.
Transparency and Influence in Political Funding
Unlike other crypto political organizations, such as the Cedar Innovation Foundation which operates with less transparency, both Protect Progress and Fairshake publicly disclose their contributors. This transparency is part of a broader effort by industry leaders like Ripple Labs, Coinbase, and investors Marc Andreessen and Ben Horowitz to foster a regulatory environment that supports digital innovation. The focus this election cycle has shifted towards supporting a select group of candidates who are perceived as more receptive to crypto, marking a strategic approach following the previous cycle dominated by larger donations from figures like former FTX CEO Sam Bankman-Fried.
Shomari Figures’ success in the Democratic primary, aided significantly by crypto PAC funding, highlights the growing intersection of cryptocurrency interests and political campaigning. As digital assets continue to push into the mainstream, the involvement of industry-backed PACs in elections is likely to increase, shaping the legislative landscape in favor of crypto-friendly policies.
