With Midterms Looming, the Crypto Industry Is Mobilizing to Maintain a Pro-Crypto Regulatory Environment. History Says This Happens Next.

Ahead of the U.S. midterms on November 3, crypto lobbying groups have spent approximately $176 million on more than 100 congressional races, as per a Reuters analysis. However, past efforts have not always resulted in the desired policies. For instance, the Senate failed to pass the Clarity Act, which aimed to divide crypto oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).

Despite significant campaign contributions, the industry's efforts have been more effective at securing allies than securing favorable laws. The largest super PAC in the crypto industry, Fairshake, has spent $150.8 million on races this cycle and, with its network, 53 out of 58 candidates it supported won. The PAC has invested $133 million in 68 races in 2024, including $40 million to unseat former Senate Banking Committee Chairman Sherrod Brown, which led to the passage of the Genius Act.

However, the Act didn't address all the industry's key priorities, like the regulation of who can earn interest on stablecoin reserves. Although Republicans have shown more support for crypto donations this election, the industry's investments in building a bipartisan pro-crypto coalition may not guarantee favorable regulatory outcomes.