In 2024, the cryptocurrency industry made an unprecedented political investment, pouring over $131 million into congressional races in a bid to push forward its regulatory agenda. The aim? To ensure pro-crypto lawmakers dominate Capitol Hill and to shape future policy in their favour. This massive spending spree isn’t just about backing candidates. It’s a strategic move to secure a favourable environment for the rapidly growing crypto sector, which includes everything from Bitcoin to blockchain technologies.
The stakes couldn’t be higher. As millions of Americans embrace digital assets, the industry is demanding clarity, better regulation, and a seat at the table when it comes to future policy decisions. With crypto super PACs funding both Republicans and key Democrats, the industry has positioned itself as a political powerhouse.
Let’s break down the industry’s plan, the key players involved, and how Washington’s stance on crypto could change in the coming years.
Crypto’s Political Investment: A Game-Changer for Washington
The cryptocurrency industry has been steadily gaining political influence over the past few years. However, the 2024 election cycle marked a turning point. According to Stand with Crypto, a tracker monitoring the crypto sector’s political influence, 274 pro-crypto candidates were elected to the House, and 20 to the Senate.
This significant bipartisan victory signals that crypto’s political presence is here to stay. By investing heavily in both Republican and Democrat candidates, the industry has ensured that it has allies on both sides of the aisle. Some key figures include Elissa Slotkin in Michigan and Ruben Gallego in Arizona, both of whom won Senate seats with industry-backed support.
But what’s driving this sudden influx of cash into elections?
Key Goals of the Crypto Lobby
The crypto industry’s main goals are clear:
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Replace SEC Chair Gary Gensler: Gary Gensler, the current chairman of the Securities and Exchange Commission (SEC), has been a target for crypto executives due to his tough stance on regulation. The industry is lobbying for a pro-crypto SEC chair, ideally someone like Dan Gallagher, former SEC commissioner and current Robinhood CLO, or Paul Atkins, a financial consultant and former SEC commissioner.
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Pass a Clear Regulatory Framework: Industry leaders argue that a comprehensive regulatory framework for crypto would enable the sector to thrive within the broader US financial system. While the industry doesn’t seek to avoid regulation, they want clarity on the rules governing digital assets.
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Create a White House “Crypto Czar”: There are talks within the industry about the possibility of establishing a crypto czar within the White House. This figure would coordinate the government’s policy on cryptocurrency and digital assets across various agencies, ensuring that crypto is treated fairly and consistently.
The Power Players: Trump, Musk, and Crypto Billionaires
The crypto industry has found influential allies in figures like Donald Trump and Elon Musk. Trump, who once dismissed Bitcoin as a “scam,” has become a strong proponent of crypto. During a recent Bitcoin conference, Trump pledged to make the US “the crypto capital of the planet” and promised to oust SEC Chair Gary Gensler. Moreover, Trump’s sons are actively involved in crypto ventures, with their own World Liberty Financial business gaining traction.
Elon Musk, the billionaire CEO of Tesla and SpaceX, has also been a vocal supporter of Dogecoin and digital currencies in general. Musk played a significant role in Trump’s campaign spending, funneling millions through various pro-Trump super PACs. Musk has even been linked to DOGE, a cryptocurrency he has championed, with some speculating that his next political push could involve crypto-related initiatives.
The industry’s investment in Trump’s campaign isn’t just about personal belief—it’s also about positioning. Musk and his allies believe that a pro-crypto administration will help drive policies that can unlock growth in the digital asset space.
How Crypto Super PACs Are Shaping Elections
Super PACs, like Fairshake and affiliated groups such as Defend American Jobs and Protect Progress, have been pivotal in this election cycle. These groups focus on funding candidates who are friendly to the crypto cause, whether they’re Republican or Democrat.
Fairshake, in particular, spent a staggering $40 million in Ohio alone to back Bernie Moreno, a pro-crypto Republican candidate who defeated long-time Democratic Senator Sherrod Brown. Brown had been a vocal critic of cryptocurrency and was particularly focused on regulatory oversight. With Moreno now in office, the crypto lobby is optimistic about passing more favourable policies.
Interestingly, while these PACs didn’t always directly advertise crypto, their spending was aimed at bolstering candidates’ profiles—usually focusing on their personal histories, economic growth, or job creation. However, the underlying message was clear: these were candidates who would support pro-crypto legislation.
What’s Next for Crypto in Washington?
As crypto continues to grow, the next challenge will be establishing a clear regulatory framework that strikes the right balance between innovation and consumer protection. The Commodities Futures Trading Commission (CFTC) is one agency that could take on a larger role in overseeing digital assets, as seen in a House bill that proposed shifting oversight from the SEC to the CFTC.
This proposal has sparked debate. Some critics argue that the CFTC’s more hands-off approach could lead to reduced consumer protections. But for many in the industry, clearer rules from the CFTC could help foster innovation and long-term growth in the crypto market.
Another key issue on the table is the creation of a national cryptocurrency reserve, a concept Trump has discussed as part of his pro-crypto agenda. If implemented, such a reserve could position the US as a global leader in crypto, boosting both the value of digital assets and the international standing of the dollar.
Conclusion: The Crypto Industry’s Long-Term Washington Play
The cryptocurrency industry is no longer just a fringe player in Washington. Thanks to massive political spending and the backing of some of the world’s most powerful figures, crypto has emerged as a significant political force in the US. With a pro-crypto Congress and a potentially pro-crypto administration, the industry is set to push for game-changing legislation.
As the crypto sector moves forward, it will continue to fight for clearer regulations, industry-friendly policies, and recognition as an integral part of the US economy. With $131 million invested, the stakes couldn’t be higher, and crypto is betting on a return.
