Political action committees (PACs) representing the interests of the cryptocurrency sector have already gathered millions of dollars in contributions as the U.S. approaches its midterm elections.
Super PACs, unrestricted in their contributions and disclosures, are set to play a significant role. In the previous year, the crypto industry allocated at least $245 million towards political contributions alone.
“The principal super PAC backed by the cryptocurrency sector, Fairshake, raised about $133 million in 2025, boosting its total cash holdings to over $190 million. Venture capital firm a16z alone infused an initial $24 million, while both Coinbase and Ripple contributed $25 million each.”
This influx of funding has raised concerns among activists and election reform advocates. Saurav Ghosh, the director of the Campaign Legal Center, stated:
“This kind of influence buying ultimately undermines the democratic process by marginalizing everyday Americans, ensuring that their voices and interests take a backseat to the crypto industry’s deregulatory desires.”
Bipartisan Support and Its Implications
The primary objective for the American cryptocurrency industry is to pass a comprehensive legislative framework known as the CLARITY Act, which advanced past the House of Representatives during the summer, now pending in the Senate. However, the bill has yet to align with the expectations of the crypto industry, especially Coinbase, while also addressing the ethical and monitoring concerns raised by Senate Democrats.
Currently, as Congress gears up for the 2026 midterm elections, the CLARITY Act’s fate is hanging in the balance. Historically, the party of the president has often lost seats in midterm elections, emphasizing the importance of these outcomes for the crypto industry, which enjoys robust support from the Republican Party. Recent voting patterns indicate that nearly twice as many Democrats opposed the Senate’s GENIUS Act motion compared to their supportive peers.
Within the crypto realm, some entrepreneurs believe a partisan approach is necessary, like Cameron and Tyler Winklevoss, who have invested millions into conservative PACs aimed at supporting pro-crypto candidates.
Conversely, others emphasize the significance of bipartisan collaboration, cautioning that favoring one party may backfire.
Sam Liccardo, a crypto-friendly Democrat, expressed to Politico in October 2025, “I don’t think anybody in this town would recommend that an industry put their eggs in one party’s basket.”
Fairshake, for its part, has demonstrated willingness to fund Democrats, contingent upon their pro-crypto stance, having spent more on Democrats than Republicans from 2023 to 2024, as per reports.
This evolving political strategy within the crypto industry reflects the changing dynamics of funding and influence at the federal level, as immense funding bolsters their lobbying efforts.
A Historical Perspective
The cryptocurrency sector made headlines in 2024 by contributing nearly $250 million to various political campaigns and PACs, making it the largest donor among industries. This was not the first time crypto has engaged politically.
During the notable bull run from 2020-2021, crypto companies significantly increased advertising spend, with well-known personalities endorsing investment platforms. For instance, the now-convicted Sam Bankman-Fried had made considerable donations exceeding $100 million during the 2022 midterms, focusing on legislation that would benefit his company, FTX.
However, following the market downturn, crypto faced numerous regulatory challenges, with increased scrutiny from the SEC under then-chair Gary Gensler.
Conclusion
As the 2024 presidential election cycle unfolded, cryptocurrency was placed at the forefront of electoral discussions, with Trump attending a Bitcoin conference and proposing to eliminate stringent regulations. PACs that dominated this cycle included Fairshake, Defend American Jobs, and Protect Progress.
The political landscape continues to evolve alongside significant financial contributions, impacting the prospects for the crypto industry as it seeks to navigate regulatory challenges in the future.
