Saikat Chakrabarti, a founding engineer at payment processor Stripe, has officially lost his congressional bid to succeed Rep. Nancy Pelosi in California’s 11th District. With approximately 50% of votes counted, the race narrowed to Scott Wiener and Connie Chan, both Democrats, who will advance from the all-party election. Chakrabarti managed to secure only about 15% of the votes.
Chakrabarti, who left Stripe in 2013, had positioned himself as a progressive reformer, advocating for a ban on congressional stock trading and targeting “tech oligarchs and crypto billionaires” who oppose his policy agenda. He invested significantly in his campaign, reportedly allocating nearly $10 million of his own funds.
The influence of the cryptocurrency industry loomed large over the election, as Chakrabarti’s defeat illustrates the growing power of crypto backers in political contests. Notably, Chris Larsen, co-founder of Ripple, backed Wiener, contributing to the political action committee (PAC) Abundant Future, which actively campaigned against Chakrabarti. This PAC spent around $65,200 opposing him, with Larsen himself providing $100,000 as its largest individual donor. Contributions to Wiener’s campaign further underscored Larsen’s significant influence in the race.
Support for Chakrabarti’s challenger came from various corners of the tech industry, including Y Combinator CEO Garry Tan and former Lightspeed Venture Partners executive Jeremy Liew, who also made substantial donations to the PAC opposing Chakrabarti. Their investments underscored a trend of increasing cryptocurrency influence within political circles, evidenced by a recent report that highlighted a pro-crypto PAC winning primaries for six congressional candidates across the country.
Larsen has a history of supporting moderate Democrats, once donating $11 million in XRP to Future Forward USA, a PAC aligned with then-Vice President Kamala Harris. His contributions have sparked criticism within the crypto community, with some describing his political strategies as puzzling.
Chakrabarti, who previously served as chief of staff for Rep. Alexandria Ocasio-Cortez, expressed support for central bank digital currencies (CBDCs), arguing that they could facilitate government relief in times of crisis. However, conservatives have raised concerns about the financial surveillance implications of these government-issued currencies.
As this congressional race unfolded, it highlighted the complexities and uncertain dynamics at the intersection of technology, cryptocurrency, and politics. Both Chakrabarti and his opponents stand as figures within a rapidly evolving political landscape influenced by the tech and crypto industries.
