Crypto has gone from outsider to insider in Washington, with industry-backed political groups amassing more than $263mn to influence next year’s midterm elections.
Once dismissed as a fringe movement, the sector is now one of the top campaign financiers in the US capital.
In the US political system, political action committees, or PACs, raise and distribute funds to support or oppose candidates at local, state, and federal levels. Once dominated by regulated sectors such as energy, telecommunications, and healthcare, the field is now being reshaped by crypto groups with deep pockets and a clear agenda: to secure favourable rules and friendly lawmakers.
President Donald Trump has openly embraced the industry, casting its rise as both an economic opportunity and a means to reinforce the dollar's dominance in global finance. Pro-crypto candidates have found strong backing within the Republican Party, which holds a narrow majority in Congress. The sector’s influence was laid bare last week when Trump pardoned Binance co-founder Changpeng Zhao, convicted under anti–money laundering laws during the previous administration.
The amount of money under the control of crypto PACs is expected to climb in the run-up to the 2026 midterms. Much of that funding is likely to flow toward Republican candidates, potentially giving them a new fundraising advantage in a tightly contested election year.
Legislative focus
Lobbyists say spending this cycle will focus on passing the CLARITY Act, a comprehensive market-structure bill that would define how digital assets are regulated and expand the Commodity Futures Trading Commission's remit. Executives from leading blockchain firms met with lawmakers in Washington last week to push for progress. “The success that the industry had in 2024 created a blueprint showing that crypto has a voice and can impact elections,” said Cody Carbone, CEO of the Digital Chamber.
Key players
Fairshake, backed by Coinbase, Ripple, and Andreessen Horowitz, remains the largest crypto PAC with $141mn on hand. It spent $133mn in 2024 to help elect pro-crypto lawmakers, according to campaign finance data tracker OpenSecrets. While Fairshake supported some Democrats last cycle, most of its spending benefited Republican candidates, including $40mn directed toward defeating former Senate Banking Chair Sherrod Brown.
Several newer groups have joined the field with stronger Republican alignment. The Digital Freedom Fund, launched by Gemini founders Tyler and Cameron Winklevoss, pledged $21mn in Bitcoin to support Trump-aligned candidates. First Principles Digital PAC, led by Republican strategist Jason Thielman, has endorsed pro-crypto conservatives, including Michigan Senate candidate Mike Rogers. Another newcomer, Fellowship PAC, has announced $100mn in commitments and is reportedly backed by figures connected to Cantor Fitzgerald and Tether, which recently established a US entity to facilitate political donations.
A growing political force
Democrats, meanwhile, are beginning to organise a response. Erik Balsbaugh, a former aide to Senator Elizabeth Warren, is leading Open Frontier, a progressive initiative focused on engaging with crypto policy on the left.
Despite lingering scepticism among Democrats, industry leaders say crypto’s economic weight ensures its political staying power. “They realise that the industry’s value is high,” Chainlink Labs co-founder Sergey Nazarov told Bloomberg. “It’s just going to keep growing, and they need to address it correctly.”
Whether Democrats join the money race or not, crypto has already cemented itself as a significant political force in Washington, and the 2026 midterms will show just how much influence that money can buy.
