The upcoming 119th session of Congress will see a significant number of lawmakers who have received substantial financial backing from the cryptocurrency industry.
Political action committees (PACs) like Fairshake and its affiliates have invested millions of dollars to support candidates who are favorable to crypto interests in the 2024 election cycle. This financial support has had a notable impact on close races, potentially influencing the outcomes in favor of pro-crypto candidates.
For example, Republican Bernie Moreno defeated incumbent Ohio Senator Sherrod Brown with the help of over $40 million from the Defend American Jobs PAC. Data from election influence tracking platforms shows that ten new members of the US Senate have received financial support from the cryptocurrency sector. Contributions ranged from a $6,600 donation from Ripple co-founder Chris Larsen to Maryland Senator Angela Alsobrooks, to over $10 million directed to Michigan Senator Elissa Slotkin from the Protect Progress PAC, another Fairshake affiliate. This financial influence has reshaped the composition of the Senate, rivaling the impact of other special interest groups.
A similar trend can be observed in the House of Representatives, where 63 new members will be sworn in. Fairshake and its affiliates have also provided significant financial support to candidates in primary races, regardless of party affiliation, who have expressed favorable views towards the cryptocurrency industry.
For example, the Protect Progress PAC spent approximately $1.7 million to help Alabama Representative Shomari Figures win the primary in the state's 2nd Congressional District. However, not all candidates have received backing from crypto executives or PACs, highlighting the varied landscape of financial influence across different races. This raises questions about the strategic targeting of resources by crypto PACs and their potential impact on legislative priorities.
Looking ahead, the advocacy group Stand With Crypto predicts that approximately 270 lawmakers in the upcoming session will be classified as "pro-crypto," giving them a clear majority in the House. This shift in congressional composition could significantly influence future legislation regarding cryptocurrency regulation in the United States, particularly with bills like the Financial Innovation and Technology for the 21st Century Act (FIT21) on the horizon.
The cryptocurrency industry is expected to continue its political advocacy in the future, with Fairshake reporting a war chest of approximately $103 million for the next election cycle, primarily funded by major players like Coinbase and Ripple. With all 435 House members facing re-election in 2026, the stakes are high for both the cryptocurrency sector and the lawmakers who align with its interests.
As the landscape of US politics evolves, the role of cryptocurrency in shaping legislative agendas is becoming increasingly prominent. The financial backing from crypto PACs not only reflects the industry's growing influence but also highlights the potential for significant changes in regulatory frameworks that could emerge from a Congress more sympathetic to crypto interests. The coming years will be crucial in determining how these dynamics play out and what implications they hold for the future of cryptocurrency in the United States.