Crypto Super PACs Return, Spend Big Bucks on Special Elections
Fairshake and affiliates spend crypto cash backing a winning VA primary candidate
Welcome to the Monday edition of the Crypto in America newsletter!
What you’ll read: Fairshake backs three winning candidates in special elections this year, three new crypto firms apply for Fed master accounts, and what to watch in Washington this week.
After spending an eye-popping $136 million to help elect more than 58 pro-crypto candidates to Congress in 2024, crypto’s largest and wealthiest super PAC — Fairshake — and its affiliates, Defend American Jobs and Protect Progress, are jumping into a new round of races to support crypto-friendly candidates in special elections across the country.
Over the weekend, Protect Progress — which typically backs Democratic candidates — played a key role in the primary victory of James Walkinshaw in Virginia’s 11th District. The group spent $1 million on ads supporting Walkinshaw, who is running to replace his former boss, the late Rep. Gerry Connolly (D-VA), who passed away last month at the age of 75.
Walkinshaw, 42, who served as Connolly’s chief of staff for a decade, has voiced support for blockchain technology as part of a broader economic development strategy for Northern Virginia. Connolly, by contrast, was viewed as staunchly anti-crypto, earning an “F” from the Stand With Crypto scorecard for voting against measures like the FIT21 market structure bill last Congress.
Walkinshaw defeated nine opponents in the Democratic primary, including Virginia State Senator Stella Pekarsky, who criticized him for accepting support from the crypto industry.
“I haven’t taken a penny from crypto PACs because you deserve a voice in Congress that serves you, not the billionaires who funded Trump’s inauguration,” Pekarsky said in an email to donors. “They’re scared of me because I can’t be bought.”
In a statement to Crypto in America, Protect Progress responded:
“Once again, politically motivated attacks against crypto didn’t work — because a vast majority of Americans, including Democrats, want Congress to unlock American innovation with responsible crypto regulation, not demonize an entire industry.”
Walkinshaw’s win marks a clean sweep for Fairshake so far this year. In April, the PAC backed two successful GOP candidates in Florida: Jimmy Patronis, who won Florida’s 1st Congressional District, and Randy Fine, who took the 6th District. The pair received a combined $1.5 million in support from Fairshake.
As of this writing, Fairshake and its affiliates have more than $100 million on hand for the 2026 midterms, fueled by top contributors Coinbase, Andreessen Horowitz, and Ripple.
Crypto Firms Renew Push for Access to the Fed
Three crypto-native firms have applied for Federal Reserve master accounts, signaling fresh optimism that the central bank may soften its stance on giving digital asset companies access to its payment rails.
WisdomTree Digital Trust, Standard Custody & Trust Company, and Commercium Financial — a Wyoming Special Purpose Depository Institution — all appear in the latest update to the Fed’s master account database.
Notably, WisdomTree and Standard Custody are New York State-chartered trust companies overseen by the NYDFS. Under current federal definitions, it is unclear whether they are eligible for master accounts, which require deposit-taking authority or FDIC insurance.
So why apply? Some industry watchers believe the firms may be positioning themselves in the hopes that President Trump could issue an executive order directing the Fed to grant unfettered master account access to fintechs and digital asset firms, a move that the administration has said to have been mulling for some months.
A spokesperson for WisdomTree said the firm is unable to comment on active filings.
Commercium, meanwhile, is taking another shot at securing a master account. The SPDI withdrew its previous application from 2022 in May of last year, but has now reapplied. While SPDIs are technically eligible for master accounts, Custodia Bank’s 2023 rejection, following a three-year process, shows that eligibility doesn’t equal approval. That case is still in litigation with an outcome expected any day now.
Separately, several crypto firms, including Fidelity Digital Assets, have applied for national bank charters from the OCC, which would allow them to operate across state lines without money transmitter licenses. The applications hint at a growing queue of firms hoping for approval under incoming, crypto-friendly OCC Chair Jonathan Gould, who has yet to be confirmed by the Senate. Under the Biden administration, only one crypto firm — Anchorage Digital — was granted a charter.
In a recent interview with Crypto In America, Anchorage CEO Nathan McCauley said the firm is now “looking deeply” into obtaining a Fed master account, though Anchorage was not on the recent application list.
What’s Happening in Washington This Week?
Congress will be focused on advancing President Trump’s “One Big Beautiful Bill” through both chambers ahead of the July 4th deadline, but crypto legislation isn’t completely off the radar.
House leadership is said to be eyeing the second week of July for a procedural vote to move both the GENIUS Act and the CLARITY Act to the House floor.
According to a Bloomberg report, current thinking is to hold separate votes on each bill once they reach the floor. If passed, the GENIUS Act would likely head straight to Trump’s desk, while the CLARITY Act would move on to the Senate. Its fate there remains uncertain, as the upper chamber is drafting its own market structure legislation and aiming for a markup in September.
What else we’re watching:
Monday
The House is out of session, while the Senate begins amendment votes and moves toward final passage of the reconciliation bill starting at 9:00 AM EST.
Tuesday
The House is back in session and expected to take up the reconciliation bill if it passes the Senate.
Thursday
The Bureau of Labor Statistics will release the June jobs report at 8:30 EST.
Friday
🇺🇸 Happy Independence Day!
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