Crypto Industry Deploys Massive War Chest in US Midterm Elections
As the first primaries of the US midterm elections commence, the cryptocurrency sector is aggressively funnelling millions of dollars into congressional contests nationwide. Federal Election Commission data reveals that crypto Political Action Committees (Pacs), firms, and investors have already expended $32 million to bolster industry-friendly candidates and counter its critics. This spending surge builds upon the sector's substantial financial outlay during the 2024 presidential election cycle.
Fairshake Super Pac Leads the Financial Charge
The lion's share of this expenditure originates from Fairshake, a crypto-backed Super Pac, and its affiliated entities. Filings with the Federal Election Commission indicate that Fairshake entered the 2026 election cycle holding more than $193 million in cash reserves, positioning it as the most heavily funded Super Pac of this electoral period. For the crypto industry, the midterms represent a pivotal opportunity to solidify gains achieved during the Trump administration and safeguard against potential regulatory setbacks.
Summer Mersinger, CEO of the Blockchain Association, emphasised the critical nature of this moment, stating, "This is the biggest legislative agenda that crypto has ever seen. So, it's the most critical time to make sure that we have pro-crypto voters in Congress, because there's a lot that needs to get done." Her organisation's Pac has allocated $38,500 this election cycle. The industry's foremost legislative objective is the passage of the Clarity Act, a regulatory framework designed to mitigate legal uncertainties and, according to proponents, unlock institutional capital. However, this bill remains stalled in the Senate amidst gridlocked negotiations and faces a July deadline for advancement before Congress adjourns for the midterms.
Republican Candidates Receive Bulk of Crypto Support
The cryptocurrency industry has already engaged in 28 federal battleground contests. While lobbyists assert a bipartisan approach, the majority of financial support in these races is directed toward Republican candidates. This trend mirrors the 2024 election cycle, where approximately two-thirds of crypto spending favoured Republicans or opposed Democrats. One anonymous lobbyist noted, "Spending will likely lean towards Republicans again this cycle, who have historically been more supportive when it comes to crypto."
Key congressional figures are central to this dynamic. The House banking committee, chaired by Republican French Hill, a prominent crypto advocate, oversees the financial services sector. In contrast, the ranking Democrat, Maxine Waters, is a staunch industry adversary. Should Democrats regain control of the House as anticipated, Waters is poised to assume the chairmanship, potentially complicating legislative progress. Hill recently secured a $4 million boost from crypto interests ahead of his successful Republican primary in Arkansas.
Illinois Emerges as Top Crypto Battleground
Illinois has attracted the most substantial crypto spending to date, with $14.2 million deployed prior to its 17 March primary. The primary target is Lieutenant Governor Juliana Stratton, a Democrat running for the US Senate. Fairshake and its affiliates have expended $10 million on attack advertisements opposing her campaign, labelling her as part of the "Madigan machine"—a reference to former Illinois House speaker Michael Madigan, who is imprisoned for corruption, though no evidence links Stratton to his crimes. Stratton has dismissed the campaign, characterising Fairshake as a "Trump-aligned Super Pac."
While Stratton lacks a crypto voting record, her campaign is backed by Illinois Governor JB Pritzker, a billionaire who, with his wife, has donated $6 million to the Super Pac supporting her. During Stratton's tenure as lieutenant governor, Pritzker enacted state-level crypto regulations, undermining efforts to establish a federal framework via the Clarity Act. The industry perceives Stratton as likely to follow Pritzker's regulatory approach.
Stratton's main Democratic primary opponent is Representative Raja Krishnamoorthi, who has received $25,300 from crypto companies and executives. Krishnamoorthi, a pro-industry ally, voted in favour of both crypto bills that passed the House last year and has expressed strong support for a clear regulatory framework for digital assets, according to advocacy group Stand With Crypto.
In Chicago, Fairshake has spent nearly $2.5 million on attack ads against State Representative La Shawn Ford, who voted for state-level crypto regulations last August. Ford reported, "They've been blasting me nonstop – on TV, radio, mailers, you name it," with ads focusing on a 2012 federal tax fraud charge, though prosecutors later dropped all felony counts. Retiring Representative Danny Davis, endorsing Ford as his successor, stated, "[Fairshake] is trying to tarnish his character. It's a big effort to change people's minds based on untrue statements."
Strategic Spending and Candidate Targeting
Colin McLaren, head of government relations at Solana Policy Institute and a former Fairshake spending strategist, explained the industry's targeted approach: "We're not just blindly supporting folks that are supportive of crypto. This is a large amount of money being spent in a few key places in a way that most advantages the industry going forward." He predicted Fairshake would intervene in the final weeks of close, expensive races where a candidate possesses a strong crypto voting record.
Representative Barry Moore of Alabama, a veteran crypto advocate in Congress, is the industry's most generously funded candidate to date, set to receive $5 million from a Fairshake-affiliated Pac for his Senate campaign. Some candidates with no prior crypto track record are also attracting substantial support after signalling pro-industry stances. In Texas, Democratic candidate Christian Menefee, facing a runoff, recently expressed support for blockchain innovation and subsequently received over $1.5 million from a crypto Pac—a 60% boost to his campaign. Similarly, Texas Republican Jessica Steinmann declared herself a "strong supporter of digital assets" and garnered nearly $800,000 from the industry before winning her primary.
Learning from 2024 and Preparing for Future Fights
Crypto lobbyists aim to replicate their 2024 success, where Fairshake and affiliates spent roughly $130 million, with 80% of the 68 congressional races they engaged in yielding favourable outcomes. This included supporting 28 general election candidates, of whom 23 won—a success rate exceeding 90%. Attention is now turning to where the remaining funds will be allocated, with candidates on key regulatory committees likely targets.
One potential focus is Democrat Sherrod Brown, mounting a comeback bid in Ohio. As former Senate banking committee chair, Brown was a vocal industry critic, prompting crypto lobbyists to spend $40 million defeating his 2024 Senate campaign. Bracing for another onslaught, Brown's campaign raised $14 million last year and has moderated its tone. Campaign manager Patrick Eisenhauer stated Brown "recognises that cryptocurrency is a part of America's economy. He'll keep an open mind towards all issues as they come before the Senate." However, a crypto lobbyist questioned whether this shift is sufficient, asking, "He showed his colors in the past. Can you change that dramatically overnight? Or is he going to go back to his old ways?"
Meanwhile, crypto's financial connections to former President Donald Trump have intensified. Last year, crypto-focused firms and investors donated over $50 million to Maga Inc, Trump's primary Super Pac, which now holds $310 million in cash—the largest sum any Pac has ever held entering a midterm year, according to the Financial Times.
