Tech bros funded the election of the most pro-crypto Congress in America.

• The election was viewed as existential to the crypto industry, which has been attempting to mature while facing repeated setbacks.
• Over $245 million was raised by crypto-related PACs and other groups linked to the industry, according to Federal Election Commission data.
• Over 290 pro-crypto lawmakers will be elected to the House and Senate, granting the industry unparalleled clout on the legislative agenda, according to Stand With Crypto.

Bernie Moreno was an unknown political figure prior to announcing his Senate candidacy in April 2023. He had no prior political experience, having only lost a bid for Ohio's other Senate seat in 2022.

Moreno has since accomplished the once unthinkable.

In the November 5th election, Moreno emerged victorious over Democratic incumbent Senator Sherrod Brown, who had been serving in the House since 1992 and the Senate since 2006, and currently chairs the influential Banking Committee.

Moreno's election to the Senate was a result of a $40 million campaign backed by the cryptocurrency industry, which aimed to elect friendly candidates and remove critics.

Nearly half of all corporate dollars that flowed into the election came from the crypto industry, according to nonprofit watchdog Public Citizen. Crypto-related PACs and other groups tied to the industry reeled in over $245 million, according to Federal Election Commission data. Advocacy group Stand With Crypto Alliance, which Coinbase launched last year, developed a grading system for House and Senate races across the country as a way to help determine where money should be spent.

The election was viewed as existential by crypto executives, investors, and evangelists, who have spent the past four years attempting to mature while facing repeated setbacks. With nearly 300 pro-crypto lawmakers set to take seats in the House and Senate, the industry will have unprecedented influence over the legislative agenda, according to Stand With Crypto.

The crypto political lobby was successful this election cycle because it simplified complex issues like campaign finance. They raised large sums of money from a few donors and used it to buy ad space in key battleground states, supporting pro-crypto candidates or attacking those who opposed the industry. Additionally, the lobby viewed candidates as either fully supportive or completely opposed to the crypto industry.

The crypto industry and its executives swiftly devised a plan to allocate their funds through a complex advertising system across the country. They also learned from the mistakes of big tech and strategized to attack their opponents before the election, thereby avoiding any potential conflicts in the following years.

For over a year, Moreno was interrogated by prominent figures in Silicon Valley, including Marc Andreessen, Ben Horowitz, and David Sacks, about the advancements in blockchain technology, digital asset regulations, and the evolving landscape of global finance.

"Moreno explained that they did not rush into the project without first establishing trust, as evidenced by the numerous meetings that took place prior to the primary."

Moreno had discussions with co-founders Brian Armstrong and Fred Ehrsam, as well as policy chief Faryar Shirzad. Despite CNBC's request for comment through Coinbase, Armstrong and Ehrsam did not respond.

Coinbase, the largest digital asset exchange in the U.S., has been fighting the Securities and Exchange Commission in court for over a year. In the 2024 cycle, Coinbase was the crypto kingmaker, donating more than $75 million to a super PAC called Fairshake. Fairshake was one of the top spending committees of any industry this cycle and exclusively gave to pro-crypto candidates running for Congress. All of Fairshake's candidates won their races in the general election.

Coinbase's Armstrong wrote on X that opposing cryptocurrency is poor politics in light of Moreno's victory.

Gary Gensler, SEC Chairman, has accused major crypto players like Coinbase and Ripple of selling unregistered securities, while also avoiding working with companies to create new specialized regulations.

Sen. Brown, who initially supported the anti-crypto stance of Sen. Elizabeth Warren, has become more vocal in advocating for a crackdown on the industry following the collapse of FTX in late 2022.

On Nov. 10, Brown retweeted a Senate Banking Committee post that warned of the failure of cryptocurrencies and their potential to harm consumers and the financial system.

In the general election, Fairshake, a bipartisan organization, won all but three races, spending heavily on both Republicans and Democrats vying for key seats. Protect Progress, a PAC linked to Fairshake, gave more than $10 million each to Democratic candidates in Arizona and Michigan, who both won. Defend American Jobs, another affiliated PAC, spent over $3 million to support Republican Jim Justice in West Virginia, who will replace Democratic Sen. Joe Manchin in the upcoming session.

In California, Katie Porter, a Democratic representative, lost a Senate primary due to over $10 million in ad spending by Fairshake.

Porter told The New Yorker, "I was like, 'What the heck is Fairshake?'"

How tech bros made their pick

The senator-elect wanted to understand what he would do differently than the current administration and regulatory regime when vetting Moreno, as he told CNBC in an interview.

Moreno said that these individuals possess the ability to evaluate investments and individuals, and they apply the same level of discipline to their work with me.

A blockchain startup, Champ Titles, was founded by him, which digitizes automobile ticketing and registration.

Moreno stated that they did not want to invest time, effort, and energy into someone who would ultimately disappoint them.

Andreessen and Horowitz, co-founders of a venture firm with their names, declined to comment through a spokesperson. Sacks, founder of Craft Ventures, did not respond to CNBC's request for an interview.

Shirzad met Moreno over breakfast in Washington in the spring. Although Moreno was not an expert on the specifics of the policy issues he would be pursuing, he had a clear understanding of the technology behind cryptocurrency and how it could be utilized.

Shirzad stated that the meeting between him, a policy expert, and him, a businessman who recognized the technology's potential, was highly productive.

David McIntosh, an early backer of Moreno's Senate bid and president of the Club for Growth, stated that Moreno was out of cash after spending all he had on a tough and expensive primary. Fairshake played a crucial role for Moreno's campaign starting in the summer, McIntosh said.

McIntosh stated that Moreno's win over Brown signaled to Washington that voters would back pro-blockchain candidates.

The Bitcoin Freedom Fund, a super PAC affiliated with the Club for Growth, spent $6.5 million on advertising for Moreno during the primary election.

Brown's office didn't respond to multiple requests for comment.

JD Vance's open Senate seat in Ohio, which will be filled by special election in 2026, has not been ruled out by Brown as a potential running for Vice President-elect.

Shirzad stated that Moreno gained an advantage by positioning himself as the "change" candidate, while Brown was seen as defending the current state of affairs.

""Crypto is a change issue that appeals to both younger voters and those seeking to make changes," Shirzad stated."

Fairshake declined to comment on whether it would spend money to block another Brown Senate run, but it has already raised $78 million for the 2026 midterms.

From Day 1, we adhered to our core strategy, backed pro-crypto candidates, and opposed those who politicized jobs and innovation, ultimately achieving victory, as Fairshake stated in a CNBC interview.

'Most pro-crypto Congress ever'

FTX and its founder Sam Bankman-Fried, who was sentenced to 25 years in prison in March for stealing more than $8 billion worth of customer money through FTX, were major players in the past two election cycles.

The contributor list for this year was more comprehensive, with significant funding coming from companies that have long been at odds with SEC Chair Gensler. Among these were Coinbase and Ripple Labs, as well as prominent venture fund Andreessen Horowitz, which has a substantial portfolio of crypto companies.

A lot of crypto's big names also gave significantly in 2024.

This election cycle, among the largest individual crypto donors were Tyler and Cameron Winklevoss, who gave a combined $10.1 million, while Ripple's top executives, including billionaire founder Chris Larsen, contributed millions, with Larsen giving around $12 million.

Armstrong, CEO of Coinbase, donated over $1.3 million to various PACs, including Fairshake and JD Vance, for Senate Inc. He also contributed to Democrats and Republicans running for House and Senate seats. Meanwhile, Coinbase's Chief Legal Officer, Paul Grewal, attended at least two Trump fundraisers, including one in Nashville, Tennessee, during the largest bitcoin event of the year.

Kraken Chairman Jesse Powell donated over $1 million to the Trump campaign.

The total amount of funds raised by Andreessen Horowitz's Polychain Capital from individual crypto contributors is over $10 million.

This week, discussions about the potential for the White House's first crypto czar began after Armstrong reportedly met with the president-elect to discuss appointments. By the end of the week, SEC Chair and longtime crypto foe Gensler announced his retirement on inauguration day.

Trump's campaign promise to his crypto supporters was to replace the SEC head with crypto-friendly regulators if elected. Gensler may have decided that the pressure he faced in Washington made it not worth trying to remain in his position.

On Nov. 5, Armstrong wrote on X that America has its most pro-crypto Congress yet.