Crypto blitzes midterms with $176 million to support allies as it prepares for post-Trump era

The cryptocurrency industry has invested approximately $176 million across over 100 midterm races in the current election cycle, aiming to establish a bipartisan network of allies in Congress to promote its interests beyond President Donald Trump's tenure. This $2.75 trillion industry and its billionaire founders are actively supporting candidates who align with their interests while contesting politicians they consider threats, according to multiple crypto political strategists and a Reuters investigation.

The industry's primary vehicle for this spending is Fairshake, its largest Super Political Action Committee (Super PAC), which contributed $196 million during the 2024 election cycle. Fairshake claims that 53 out of its 58 supported candidates won their respective primaries or special elections, and they will appear on the November 3 ballot.

The organization's affiliates, disguised with innocuous names like "Defend American Jobs" and "Protect Progress," often emphasize hot-button issues like taxes and immigration to garner support.

While the crypto industry's recent spending is well-documented, its long-term strategy remains less understood. Its Super PACs can accept and spend unlimited funds but cannot directly coordinate with campaigns. Instead, they flood races with tens of millions of dollars in advertisements, barely mentioning cryptocurrencies. The majority of Fairshake's advertisements are funded by its affiliate PACs with names like "Defend American Jobs" and "Protect Progress."

Critics, such as the advocacy group Public Citizen, argue that the industry is the single-largest corporate spender in federal races, comparing it to a "corporate Death Star" dominating the election landscape. The PACs' main financiers, including Coinbase, Ripple, and venture capital firm Andreessen Horowitz, aim to forge long-term relationships with elected officials rather than sway voters towards cryptocurrency.

The strategy reflects the industry's recognition that, post-2029, the White House may not be as personally invested in crypto as it was under Donald Trump, whose family reportedly earned $2.3 billion from crypto ventures between mid-2024 and April, as revealed by a Reuters investigation. The industry's objective is to "ensure clear rules of the road" for the next 100 years, safeguarding the sector against regulatory uncertainty, according to Colin McLaren, head of government relations at the Solana Policy Institute, which contributed $4.9 million to the midterms this year.