Crypto PAC loses Thanedar but wins five other primaries

The crypto industry's biggest campaign fund, Fairshake, suffered a rare defeat this week when Representative Shri Thanedar lost his Democratic primary in Detroit to challenger Donavan McKinney. Fairshake spent more than $2 million defending Thanedar, a co-sponsor of the Digital Asset Market Clarity Act and a vocal supporter of crypto legislation. McKinney, a democratic socialist endorsed by Senator Bernie Sanders, has not taken a position on digital assets.

The loss was an outlier. Fairshake and its affiliates won five other primaries on Tuesday, mostly backing incumbents. In Michigan, Republican Bill Huizenga, also a Clarity co-sponsor, won his race. Democrats Suzan Delbene, Kim Schrier and Marilyn Strickland prevailed in Washington state. The PAC also supported Amanda McKinney, a pro-crypto Republican endorsed by President Donald Trump, in a Washington GOP contest.

Fairshake has been building a roster of crypto-friendly lawmakers through primary spending, with most of its favored candidates expected to win in November. The PAC's biggest setback before Tuesday came in Illinois, where it spent more than $10 million trying to defeat Lt. Gov. Juliana Stratton in her Senate bid.

Every Senate seat matters for the industry's top legislative priority, the Clarity Act, which is facing a last-ditch push for a Senate vote this week. Even if Clarity passes this year, the crypto sector wants further action on crypto tax rules and other user-focused policies.

The primary results show the industry can still lose expensive races even as it builds broader support. The next test comes in November, when the newly elected Congress will decide the fate of crypto legislation for years to come.