$176M crypto election spending targets US midterms for digital asset legislation

The U.S. crypto industry has dedicated close to $176 million to the 2026 midterm elections across over 100 congressional races, aiming to foster political backing for digital asset legislation that could persist beyond the tenure of President Donald Trump.

According to an investigation conducted by Reuters on October 27, campaign finance documentation reveals that Fairshake and its associated political action committees disbursed $150.8 million up to October 20, while other groups supporting crypto contributed approximately $25 million to election expenditures.

Industry strategists view this as a long-term endeavor to cultivate ties with legislators who possess the capacity to influence forthcoming cryptocurrency regulations, as the campaign targets candidates from both major political parties. Fairshake reported that 53 out of the 58 candidates it backed during primary and special elections successfully won their respective races.

The super PAC network, which receives primary funding from entities such as Coinbase, Ripple, and Andreessen Horowitz, is presently focusing its resources on competitive congressional contests, including the Senate race in Ohio. Fairshake has emerged as the primary mechanism for the industry's political spending, building upon its prior spending of $196 million during the 2024 election cycle.

Its affiliated groups, Defend American Jobs and Protect Progress, finance advertisements either backing or challenging candidates without coordinating directly with those campaigns. These committees frequently disseminate advertisements addressing topics like taxation, immigration, and other political matters without explicitly mentioning cryptocurrency.

Geoff Vetter, a spokesperson for Fairshake, stated that the organization backs candidates who advocate for American financial innovation across both political affiliations. Previously, the network announced backing for 32 members of the House, initially allocating $6 million among three Republicans and three Democrats.

As reported by crypto.news on October 5, all 32 of those candidates had endorsed the CLARITY Act, which proposes the establishment of federal rules governing digital asset markets.

Industry representatives interviewed by Reuters indicated that the group's political strategy extends beyond merely achieving individual electoral successes. Colin McLaren, who heads government relations at the Solana Policy Institute, characterized the expenditure as "an investment in the future," defining the effort as a means to secure predictable cryptocurrency regulations over the ensuing decades.

This spending drive follows regulatory adjustments implemented during Trump's presidency, notably the 2025 GENIUS Act, which established a federal structure for payment stablecoins. Industry representatives have argued that legislative measures provide a more enduring certainty compared to regulatory policies that subsequent administrations might alter.

The Digital Asset Market Clarity Act remains a primary, incomplete objective for the industry, as this bill would institute a clearer delineation of duties between the Securities and Exchange Commission and the Commodity Futures Trading Commission. This legislation has encountered a standstill in the Senate due to disagreements concerning provisions related to oversight requirements and those addressing public officials' cryptocurrency interests.

Although Fairshake supports House candidates from both parties, Reuters noted that its spending in the Senate has shown a preference for Republicans, correlating with Democratic opposition to the legislation. Consequently, the industry's political participation remains bipartisan at the House level while following a different trajectory in Senate contests.

Substantial financial backing for this initiative has come from Coinbase, Ripple, and Andreessen Horowitz. A prior examination of Ripple's political contributions estimated its election-related spending at around $48 million during the 2026 cycle, demonstrating the financial backing supporting the industry's lobbying aims.

Ohio has become one of the most costly contests involving political spending backed by cryptocurrency, with advertising data cited by Reuters showing that groups directed over $68 million toward the Senate race between Democrat Sherrod Brown and Republican Jon Husted. Brown, who previously chaired the Senate Banking Committee, criticized several regulatory proposals supported by the industry before losing his seat in 2024. Fairshake-aligned organizations have subsequently committed significant funds to oppose his return to Congress.

An October 16 report documented that Defend American Jobs spent upwards of $46 million against Brown and in favor of Husted. Furthermore, a distinct political committee supported by Winklevoss reported nearly $6 million in related spending within Ohio. Brown's campaign has criticized the advertisements, pointing out that some include attacks unrelated to cryptocurrency policy. Reuters identified one specific advertisement that repeated a claim regarding Internal Revenue Service agents and Social Security benefits, a claim its fact-checking process had previously dismissed.

Beyond Ohio, Fairshake's financial outlays have faced pushback from candidates who claim the industry's advertisements have targeted them unfairly. In Illinois, the network allocated over $10 million to oppose Lieutenant Governor Juliana Stratton and an additional $2.5 million against state Representative La Shawn Ford. Despite these campaigns against them, both candidates managed to defeat their primary challengers. Ford's campaign later issued a cease-and-desist letter, asserting that Fairshake had made damaging statements referencing a federal indictment that authorities dropped years ago. Ford connected the opposition to his backing of Illinois legislation that mandates cryptocurrency businesses register with state regulators. Describing the advertisements disseminated across social media, radio, and television, he informed Reuters, "It was personal and it was hurtful," criticizing the impact the campaign had on his family.