Gallego Faces Fallout from Stolen Funds in Crypto Backing

Senator Ruben Gallego (D-AZ) finds himself embroiled in controversy following the theft of $10 million from a pro-crypto super PAC amid the 2024 Senate election.

Currently, Gallego is in a tough race against Republican Kari Lake, vying for the seat left vacant by Senator Kirsten Sinema’s resignation.

During this challenging Senate election, Gallego received substantial support from a super PAC linked to major crypto companies, including Coinbase, a leading digital currency exchange. Previously, he has expressed favorable views on cryptocurrency, and platforms like StandWithCrypto have highlighted his commitment to pro-crypto policies.

This strong backing from the crypto community could potentially give Gallego an edge as the election approaches.

However, despite his pro-crypto positioning, Gallego appears to be opposing legislation designed to create clearer regulations for stablecoins, which are crucial to the cryptocurrency ecosystem. Some former Republican strategists have characterized this stance as a betrayal to the crypto community.

Stablecoins are digital currencies pegged to fiat currencies, like the US dollar. Sending stablecoins is often more efficient than transferring traditional dollars, potentially enhancing financial accessibility and reinforcing the dollar’s status as a dominant global reserve currency, thereby increasing demand from the US Treasury.

Gallego, along with Senators Mark Warner (D-VA) and Andy Kim (D-NJ), initially supported stablecoin legislation during the March Banking Committee review.

“It’s evident that digital assets are here to stay,” Gallego remarked after a Senate Banking Committee hearing.

Interestingly, the opposition from Senate Democrats might create confusion, especially as Senate Minority Leader Chuck Schumer (D-NY) discussed the necessity of passing the stablecoin bill in 2024 alongside a reauthorization of the Federal Aviation Administration (FAA).

Gallego stated, “You can’t try to f*** us, and hey, deal with it,” indicating the urgency of the situation during a recent discussion. “It doesn’t work, especially if you need to vote.”

Meanwhile, Senate Republican leadership plans to push for advancements on the legislation later this week.