Crypto’s midterm spending spree stumbles as Democrats rack up big wins

On November 4, the crypto industry's $200 million spending spree for the midterm elections faltered, as some of its most high-profile targets suffered defeats, according to wire material. While the industry claimed victory in most of the races it targeted, losses in crucial Senate races left lobbyists questioning the effectiveness of their candidate endorsements.

The Ohio Senate race, a costly contest featuring Democrat and crypto critic Sherrod Brown, proved to be a significant setback for the industry, despite committees spending over $60 million to oppose him. This race was viewed as a test of crypto's political influence following the Senate's rejection of the Clarity Act, a major piece of crypto legislation, due to opposition from Democrats.

Analyst Jaret Seiberg noted that the midterm results cast a shadow over the industry's political environment, with some progressive Democratic candidates successfully linking their opponents to crypto ties. The leading industry super PAC, Fairshake, secured a notable win by helping Republican Senator Pete Ricketts defeat Nebraska independent candidate Dan Osborn, a former labor union leader.

Fairshake, backed by major players like Coinbase and Ripple, spent heavily on House races, with 29 of the 34 races it funded resulting in victories so far. The industry has historically spent around $500 million over two election cycles to build a bipartisan network of congressional allies. However, the defeat of the Clarity Act and the Democratic takeover of Congress have left the crypto industry facing potential oversight and investigations, particularly regarding its connections to former President Donald Trump. Despite the setbacks, crypto executives remain optimistic about the long-term trend.