Rep. Al Green and the Crypto Industry’s Influence

WASHINGTON — Rep. Al Green (D-Texas) managed to sidestep over $1 million in spending directed at him by the cryptocurrency sector during the recent Democratic primary. Following this unexpected outcome, Green expressed that he now feels “liberated.”

“Today I’m going to discuss a topic that has stirred a lot of confusion in Congress, one that many would likely say is unwise to address, considering the potential fallout,” Green stated in a speech on the House floor. “Why is the crypto industry pouring millions into gaining control of Congress?”

In the months following the 2024 election, many Democrats aimed to steer clear of the crypto industry’s displeasure, particularly after former Rep. Katie Porter (D-Calif.) and Sen. Sherrod Brown (D-Ohio) utilized substantial funds to attack the industry, only to lose their races. However, recent events in the Democratic primary could have laid the groundwork for a Democratic backlash.

Green unexpectedly progressed to a runoff against freshman Rep. Christian Menefe, despite the crypto industry’s interference. Additionally, significant spending on cryptocurrencies in two Illinois races not only failed to defeat the candidates but also alienated local officials.

Sen. Tammy Duckworth (D-Ill.) commented to HuffPost, “Anyone who shows up at the polls last minute and spends $10 million trying to sway the election is simply pushing voters away. It made me reconsider what their actual plans are for advancing the industry while reducing regulations. In short, they harmed their cause with their actions in Chicago and Illinois.”

Molly White, an author and researcher, highlighted that complaints about cryptocurrencies were relatively sparse during this election cycle, which marked the industry’s first major political foray. “We’re seeing clearer condemnation of crypto and AI super PAC spending this season,” White noted, pointing to feedback from Illinois Democratic candidates Julianna Stratton and La’Shawn Ford. “This could be the beginning of a trend resonating with voters. Illinois has generally seen strong rejections of candidates favored by the crypto industry.”

In Illinois, FairShake, a major pro-crypto super PAC, invested $10 million attacking Lieutenant Governor Stratton in the Democratic Senate primary, fueled by discontent over state regulations. They also spent $2.5 million targeting state Sen. Ford, who is running for Congress. Remarkably, both candidates emerged victorious, although FairShake managed to defeat state Sen. Robert Peters in a House race.

FairShake didn’t comment on these events. The fair outcomes for Ford and Stratton have led some Democrats to rethink their strategies regarding an industry they were previously wary of antagonizing, particularly following Porter’s defeat in 2024.

Porter, an ally of Sen. Elizabeth Warren—a known opponent of the crypto industry—is currently pursuing a gubernatorial run. Last summer, she met with Ripple’s co-founder and received a substantial donation from him, which he later described as “refreshing.”

As election season approaches, many progressives are evaluating their stances with industries like artificial intelligence and AIPAC, which are also poised to spend hefty sums on negative advertisements against their opponents.

“You can only endure so many attacks, and sometimes you have to choose your battles wisely,” commented one progressive campaign strategist, who chose to remain anonymous. “Despite what’s said about the crypto sector, they haven’t shied away from controversial actions in recent years.”

The strategist also pointed out that most candidates lack the financial backing to support crypto advertising like Stratton, who received $5 million from Illinois Gov. JB Pritzker for a supportive super PAC.

There’s ongoing uncertainty regarding how the crypto industry selects its targets. Evanston Mayor Daniel Biss, who secured a victory recently and is on his way to Congress, reportedly received an “A” rating based on his responses to a survey on the Stand With Crypto website. Yet, Warren, a progressive supporter, stated she would not associate herself with the industry in Congress.

“I believe that financial regulations, both for traditional institutions and these new cryptocurrencies, are essential for our society’s welfare,” he mentioned in a pre-election interview. “I can’t speak to how they assess candidates, but I certainly wouldn’t be on their list of allies if elected.”

This spending occurs amidst a significant decline in the value of Bitcoin and other digital assets, which dropped from over $4 trillion last fall to just above $2 trillion now.

Despite the crypto industry’s success in backing candidates in the 2024 elections, their legislative influence has lagged. Congress approved a bill providing government benefits to stablecoins but stalled a more ambitious proposal aimed at loosening regulations. Republicans are currently waiting for banks and crypto companies to resolve their differences over a proposal allowing stablecoins to earn interest-equivalent yields.

Meanwhile, the Democratic Party seems to be muted about the so-called “market structure” bill. It’s questionable whether as many Senate Democrats, who previously supported the stablecoin bill, would back the more comprehensive legislation—a contentious topic complicated by allegations regarding President Donald Trump’s use of digital assets for personal gain.

In an interview with HuffPost, Green expressed pride in receiving an “F” rating from the crypto sector for not supporting cryptocurrencies. He attributed this rating to his previous votes for crypto-friendly legislation and his critical remarks during a House Financial Services Committee hearing.

“This ‘F’ is one I’ll wear with pride. I believe my actions are justified,” Green said. “It seems the crypto industry desires minimal regulation or none at all, disregarding perspectives from lawmakers like myself.”

Green learned from a source that his opponent, Menefee, planned a victory party on the night of the recent Texas primary. The winner will now await a runoff election in May.

Menefee, who claims he does not own any cryptocurrencies and has not sought industry support, advocates for sensible regulations to combat fraud, suggesting that blockchain technology might have beneficial applications, like tracking mortgage deeds.

“I aim to approach this technology thoughtfully, acknowledging that it’s being widely used, especially among younger generations,” Menefee remarked.

The upcoming runoff is less about cryptocurrencies and more about whether it’s time to “pass the torch” to younger generations, with Green being 79 and Menefee 37.

Regarding the notion of a victory party, Menefee clarified that his campaign’s event was just a usual watch party that every campaign holds.

“He’s been a councilman for two decades and still came in second,” Menefee noted. “If he had genuinely devoted himself to our community and stood against Trump, he wouldn’t have ended up in second place.”