Fairshake issues warning after Texas elections: ‘Being anti-crypto has consequences’

The crypto industry bagged six wins in Texas this week.  For the Texas 18th District, Representative Christian Menefee unseated the anti-crypto incumbent Al Green, who has served for over 20 years.  Menefee won in the hotly contested Democratic run-off that saw crypto PACs, including Fairshake and Protect Progress, spend over $6 million to support him.  In fact, Protect Progress spent another $2.8M against Al Green. He was viewed as ‘strongly against crypto’ after voting against the CLARITY Act and GENIUS Act in the past.  Commenting on the win, Fairshake said it was the ‘difference-maker’ in the race. It added that it will support pro-crypto industry leaders like Rep. Menefee and billed Green’s defeat as a warning to other anti-crypto lawmakers.  Rep. Green’s defeat proves that anti-crypto hostility carries real electoral consequences, making him the first Democratic incumbent this cycle to lose his seat. Four other representatives backed by the industry also won. They included Carlos De La Cruz (Texas 35th District) and Alex Mealer (Texas 9th District). Similarly, Tom Sell (Texas 19th District) and John Bonck (Texas 38th District) won their respective races.  In fact, in the Texas Senate primary race, Ken Paxton, supported by another crypto PAC, Fellowship, edged out John Cornyn, bringing total wins to six.  What's next for the CLARITY Act? The Texas victory covered Democrats and Republicans, underscoring the industry’s bipartisan support, provided a lawmaker is not against the industry. The end goal is to get enough backing for the passage of the crypto market structure bill, the CLARITY Act, even if it is pushed to next year.  Additionally, it could help prevent any amendments or proposals that the industry deems negative to the policy gains the sector has made.  That said, the CLARITY Act will be competing with other bills for a Senate floor vote in June. But uncertainty is deepening. Jake Chervinsky, CEO of the Hyperliquid Policy Center, cautioned that there "isn't much time left" for the CLARITY Act.  In a Tuesday note to clients, Jaret Seiberg, managing director at TD Cowen, echoed a similar sentiment, citing that conflict-of-interest provisions demands could be a stumbling block.  The political environment is getting worse for the Clarity Act. It is why we remain pessimistic that Clarity will become law this year. The bill cleared the Senate committee hurdle in mid-May. But the ethics provisions issue could deny the bill Democratic Party support for the bill to pass the Senate floor vote.  As of writing, the odds of the bill’s passage dropped below 60%. Final Summary Crypto PAC Fairshake warned that Al Green's defeat means anti-crypto hostility by lawmakers will have election consequences going forward.  TD Cowen cast doubts on the CLARITY Act's progress, citing conflict-of-interest provisions.