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In 2013, a motley crew riding the first big crypto bubble created an early lobbying effort called the Bitcoin Foundation. In its short life, the outfit scratched together a few million bucks and nabbed a short appearance before a Senate committee. Soon after, the price of Bitcoin tumbled to $300, and in 2015 the foundation collapsed in scandal. Few people noticed, as this was a time when few people in Washington, D.C., knew or cared what crypto was.

How times change. On Wednesday, it emerged that pro-crypto super PAC Fairshake and its affiliates are heading into the 2024 election with upwards of $85 million to spend. To put that into context, that figure is well above what other single-issue super PACs have raised this cycle, including totals for the NRA and Everytown for Gun Safety combined. In less than a decade, crypto in Washington has gone from “Who?” status to a big league player with the money and clout to make people in power pay attention.

The question now is how the crypto industry plans to use its money and influence. Its PAC is already buying TV ads and paying for on-the-ground campaigns to help elect pro-crypto candidates in districts around the country. That’s a standard playbook, but there’s still the question of which candidates will get a chunk of that $85 million—and whether any individual, no matter how crazy or unscrupulous, can get a slice so long as they profess to like crypto.

Consider someone like Vivek Ramaswamy. The onetime Harvard “section guy” reinvented himself as a populist Republican presidential candidate and has become the toast of the crypto set for his willingness to talk up Bitcoin—among other things. This week, for instance, he tweeted in support of the Taylor Swift conspiracy. You know, the one where Swift and her beau, star tight end Travis Kelce, are part of a plot run by the Pentagon and George Soros to fix the Super Bowl in favor of the Chiefs to hurt Donald Trump’s election chances.

Leaving aside how insane this is, it’s straight up political malpractice to attack the country’s most popular entertainer and her all-American romance with a football star. Sure, most politicians say or do something incredibly stupid at some point—you can decide for yourself, for instance, if a white liberal who lies about being a Cherokee for political advantage deserves to remain in office. But with Ramaswamy, it’s not a one-off. It’s how he rolls. Only months ago, he hinted 9/11 might be an inside job.

The question is why prominent figures in the crypto industry keep embracing figures like Ramaswamy, who are deeply unserious and bad for American democracy. For years, I’ve asked if the crypto world wants to fulfill its ideals of an open and democratic financial system, or if it’s content to be an alt-right subculture. If you think I’m exaggerating, consider that Mario Nawfal, host of one of crypto’s most popular podcasts, recently welcomed as his guest Alex Jones—who, you recall, made his name terrorizing the grieving parents of murdered 6-year-olds.

This pattern of leading crypto figures palling around with vile demagogues raises the question of whether they believe in America as a country, or only in protecting the industry that made them rich. I asked Josh Vlasto, spokesperson for the Fairshake PAC, if there is anything a pro-crypto candidate could do or say to cut off donations. His email reply was that the PAC will make “an independent determination on which candidates to support based on several factors. Candidates supported will be those who want to keep Web3 innovation and jobs in America.”

That’s not reassuring. The crypto leaders who wrote checks for the PAC, including Coinbase’s Brian Armstrong and the Winklevoss twins, should probably provide some guidance. Otherwise, this new political campaign will only reinforce most of America’s worst prejudices about crypto, and we will see $85 million set on fire in spectacular fashion.

Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts

DECENTRALIZED NEWS

A profile of Mercado Libre shows how the Latin American shopping giant has held off Amazon and other rivals, and added services like crypto and investing to become a major financial player as well. (Fortune)

The U.S. Energy Information Administration plans to collect data from Bitcoin miners after a preliminary survey found they use 0.6% of the country's energy, an amount equal to the state of Utah. (Bloomberg)

Firms have filed to trade options tied to the new Bitcoin ETFs, but many analysts say regulatory approval could take a year or more. (Fortune)

Binance's attempt to reenter the U.K. market is being stymied as regulators warn potential partners who hold the necessary licenses not to work with the company. (Bloomberg)

Open Exchange, the new trading service launched by the reviled crypto bros who ran Three Arrows Capital into the ground, is shutting down after a reprimand from Dubai regulators. (WSJ)